Dividends4Life: This High Dividend Stock Now Yields 7.9%

This High Dividend Stock Now Yields 7.9%

Posted by D4L | Monday, January 30, 2017 | | 0 comments »

The stock market is soaring past its all-time high. Even the blue-chip dividend stocks have made impressive gains, pushing their yields lower. But it’s not the end of the world for dividend investors. For instance, this high dividend stock is yielding 7.9% at the moment. The big question is: is the dividend safe?

The high-dividend stock I’m talking about is Genesis Energy, L.P. (NYSE:GEL) stock. It is a growth-oriented master limited partnership (MLP) headquartered in Houston, Texas. For those not in the know, MLPs are in the midstream oil and gas business. As long as they earn at least 90% of their income through activities involving the transportation of commodities in the U.S., they are exempt from corporate income taxes. And it gets better. An MLP is required by law—and also incentivized—to distribute almost all its available cash to its unitholders. That’s why, when the average yield of all S&P 500 companies is at a measly two percent, many MLPs are offering yields double or triple that. In the case of Genesis Energy, the dividend yield is at a very attractive 7.9%.

Source: Income Investor

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