Master limited partnerships (MLPs) have fallen out of favor with investors over the years because of their tax complexities. Instead of sending a 1099-DIV for tax purposes, MLPs send their investors a Schedule K-1, which typically arrives late in the tax filing season.

However, the extra work when filing taxes (and potential delays) can be well worth it, because many MLPs offer high-yielding distributions. Crestwood Equity Partners (NYSE: CEQP), Energy Transfer (NYSE: ET), and MPLX (NYSE: MPLX) all currently yield around 9%. That can turn a $1,000 investment into roughly $90 of annual passive income. In addition, all three MLPs recently declared their next distribution payment, setting investors up to start collecting income as early as next month. 

Crestwood Equity Partners declared its latest quarterly distribution at $0.655 per unit ($2.62 annually) in late July. That gives the MLP a 9.1% yield at its current unit price. The company expects to make that payment to investors on Aug. 14 for those who hold units by Aug. 7.

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Source Fool.com