UBS Hikes Alerian Payment
UBS Investment Bank announced a coupon payment for the ETRACS Alerian MLP Index (NYSE: AMU – $31.38) of $0.3729 up from $0.3579 in the previous quarter. The annualized yield based on the new payout is equal to 4.8% at current quotations. The exchange traded note guaranteed by UBS seeks to replicate, net of expenses, the Alerian MLP Index, which measures the performance of 50 prominent energy master limited partnerships. Its constituents earn the majority of their cash flow from the transportation, storage, processing or production of energy commodities. The shares of AMU have been up 5.6% over the past twelve month and together with its generous coupon, the total return has averaged about 10.4% over that time period. The ETN is a worthwhile core holding in a conservative income portfolio.