Today’s chart highlights a group of top dividend stocks that have quietly paid out big yields: propane distributors. These firms deliver propane fuel to households. Because you’re looking at a mature business, managers elect to pay out most of their profits to owners. For this reason, these stocks yield as much as five, seven, or even nine percent.
Specifically, I’ve been researching AmeriGas Partners, L.P.(NYSE:APU). The company serves some two million residential and commercial customers across the country. And, while it doesn’t get a lot of press in the business world, investors have reasons to love it. First and foremost, AmeriGas is a lucrative business. The company will even throw in a free tank when a customer signs up for propane service. You can’t, however, get a refill from another supplier. So, even if a competitor offers a better price, most homeowners won’t tear up their yards to save a few bucks. The company enjoys a certain cost advantage, too. As the largest player in the business, AmeriGas benefits from many economies of scale. This allows management to undercut rivals and still earn big returns.
Source: Income Investor
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