These two picks are buys, but be cautious

Article Excerpt

The main appeal for these two master limited partnerships (MLPs) is their above average yields compared with regular stocks. We like both, but there are a few things Canadian investors should keep in mind. For one, you must pay a 35% U.S. withholding tax on income from MLPs, though you can usually claim a non-refundable Canadian tax credit to offset that. As well, MLPs are not suitable for RRSPs or RRIFs. CEDAR FAIR L.P. $70 (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 56.1 million; Market cap: $3.9 billion; Price-to-sales ratio: 3.0; Dividend yield: 5.1%; TSINetwork Rating: Average; www. cedarfair.com) owns 11 amusement parks, three water parks (one indoor) and four hotels. In the quarter ended December 31, 2017, revenue rose 18.9%, to $228.2 million from $192.0 million a year earlier. Thanks to Halloween and winter-related promotions, revenue from park admissions (59% of the total) jumped 21.7%. Sales of food and merchandise (29%) gained 23.0%. However, revenue from Cedar…