Collecting $10,000 in annual dividend income from a $10,000 initial investment is the holy grail of income investing. More broadly, collecting annual income equal to the amount you invest is almost always a signal of an investment well-chosen. Assuming you get there within two or three decades, it represents an extremely efficient use of capital that comes with a huge margin of safety because you can re-allocate the dividends to new investment opportunities, continually extracting the amount of money you put at risk from your labor into a business enterprise.
I want to talk about such a golden goose that rarely gets discussed: Buckeye Partners, one of the greatest energy partnerships in the world that is very rarely discussed on financial commentary websites. When someone says “I don’t want to fill out the paperwork or go through the hassle of a K-1 form to own an MLP”, this is what … Read the rest of this article!