"Location, location, location" - you've heard that phrase in relation to retail. Well, it's also important in many other industries, such as the US energy industry, where certain shale plays have cost advantages. This stock yields over 7%, with 1.10x coverage. Management has raised the distribution every quarter since the company's IPO - 49 straight quarters - and is targeting 8% annual distribution growth in 2017. The company has a competitive advantage, due to where its assets are located. Q4 '16 revenue grew 15%, EBITDA grew 14%, and DCF grew 9%.
This cost advantage plays to the strengths of midstream firm Holly Energy Partners L.P. (NYSE:HEP), and its parent/general partner, HollyFrontier Corp. (NYSE:HFC). As you can see from the map, HEP and HFC have a strong presence in the West Texas Permian Basin area, with a refinery, several terminals, pipelines and other assets concentrated in this high growth area. HEP derives 80% of its revenues from long-term contacts with minimum volume or revenue commitments. 100% of its revenues are fee based, with limited commodity risk. Its earliest contract, 17% of its total business, is up for renewal in 2019.
Source: Seeking Alpha
Related Articles:
- 8 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 8 Dividend Stocks With A 15% Yield In 15 Years
- Don't Touch These 5 Dividend Stocks!
- 9 Higher Yielders With A Low Free Cash Flow Payout
Dividend Growth Stocks News
- Best Dividend Stocks To Follow Now - May 26th - MarketBeat - 5/28/2025
- Recession-Resistant Portfolio: 3 Dividend Stocks to Hold During a Recession - The Motley Fool Canada - 5/28/2025
- 3 Cash-Cow Monthly Dividend Stocks to Buy and Forget - 24/7 Wall St. - 5/28/2025
- 3 Top Dividend Stocks to Maximize Your Retirement Income - Yahoo Finance - 5/28/2025
- 10 Dividend Stocks With Yields Increasing Today - 24/7 Wall St. - 5/28/2025
- AFLAC Incorporated (AFL) Dividend Stock Analysis - 5/23/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
High-Dividend Stock Has 49 Straight Dividend Hikes, Yields 7%, More Hikes Due In 2017
Posted by D4L | Friday, April 07, 2017 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.