This stock yields over 9%, with strong coverage of 1.30x, and has major industry tailwinds. It just landed a major contract that will increase its EBITDA and distributable cash flow by over 35%. Analysts have raised earnings estimates and price targets over the past 30 days, but it's still 8% below analysts' lowest price target. With global warming heating up, many nations, especially in Europe, have passed much stricter guidelines for their power plants to drastically reduce their use of coal in the future, and replace it with cleaner, renewable fuels. These utilities are literally between "a lump of coal and a hard place," to paraphrase an old expression.
That's where Enviva Partners (NYSE:EVA) comes in - it's the biggest player in the wood pellets industry. EVA is based in the Southeastern US, which is the cheapest source for wood pellets. Due to the increased regulation in Europe, there's huge demand for its products. In fact, EVA just landed a major contract in the UK, which should increase its future tonnage volume, EBITDA, and distributable cash flow by around 35%. In addition to landing more contracts, EVA has another growth driver - like many of the LPs we cover, it also has first purchase options on a strong pipeline of drop-down assets from its sponsor/parent company.
Source: Seeking Alpha
Related Articles:
- 7 Dividend Stocks Yielding Over 3%, With Tiny Payout Ratios
- Warren Buffett's Secret To 50% Returns
- 7 Undervalued, Big-Name Stocks To Consider For Your Dividend Portfolio
- 7 High-Yield Energy Stocks Growing Their Dividends
- 5 Dividend Stocks In Need Of A Market Correction
High-Dividend Stock Yields 9%, Just Won Major Contract, Estimates Rising
Posted by D4L | Saturday, July 16, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
In an attempt to put a lid on inflation, the Federal Reserve has stated that it intends to raise its benchmark federal-funds rate by 0.25% a...
-
If you have contemplated selling shares of some of the companies you own this year, you likely aren't alone. Considering how volatile th...
-
Dividend growth stocks are among our favorite investment groups because you get so much bang for your buck. Not only do the companies pay di...
-
Readers may want to do a stock valuation on the stocks in their favorite sectors and wait patiently until they become cheap. Patience is a v...
-
Dividend Kings, stocks with at least 50 consecutive years of dividend growth, are favorites of many income investors. High-dividend yields c...
-
This is a clear recipe for investors to follow, and will lead us quite naturally to two recent stock recommendations from Morgan Stanley’s a...
-
Dividend utility stocks might seem bad for your portfolio during high inflation and rising interest rates. However, the sector has done well...
-
Companies that have either been through past downturns or have the pricing power to offset the costs of inflation provide a crucial element ...
-
Dividend reinvestment plans, or DRIPs, can be effective ways to accumulate shares of high-quality companies for those with limited capital t...
-
Do you have the stomach for contrarian investing - betting against the crowd? Sometimes that's necessary in order to find value. Why buy...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.