Niche LP Yields 8%, Good Coverage, Just Reported Big Q4 Earnings

If you're looking for niche Basic Materials dividend paying stocks, maybe you should take a look at the soda ash industry. Soda ash is a commodity which is used in many types of glass, soaps, detergents, paper and pulp, in addition to other categories. This LP yields 8.17%. Distribution coverage was 1.28X in Q4 '17. EBITDA grew 22% and DCF grew 34% in Q4 '17.

Ciner Resources LP (CINR) is one of our long-term holdings - it's part of the Ciner Enterprises Group - it owns and manages Ciner Wyoming LLC - one of the world's largest and lowest cost producers of natural soda ash. CINR struggled a bit in the 1st half of 2017 due to lower market prices and some unscheduled plant downtime, which hurt its earnings in Q1-Q3. However, management just reported robust Q4 '17 earnings, thanks to a much-improved market, with no plant shutdowns. Net Income rose 33%; EBITDA grew 22%; and DCF rose 34%.

Source: Seeking Alpha

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