Every income investor wants to own high-yield stocks. And yet, in today’s market, most double-digit yielders are having a hard time finding an audience. The reason is simple: high-yield stocks are not known for their dividend safety. In an era where a four percent payout qualifies as high yield, it would take an extremely generous dividend policy to support a 10% payout. And if the dividend is safe, investors would rush to buy the stock, bidding up its price so that it would no longer offer such a generous yield. In other words, if a company’s yield stays consistently at a very high level, chances are the payout wouldn’t be sustainable.
But there are exceptions. Energy Transfer Partners LP (NYSE:ETP), for instance, offers investors a staggering annual yield of 13.7%. And yet it has more than enough resources to cover its payout. Headquartered in Dallas, Texas, Energy Transfer Partners is in the pipeline business. The partnership’s portfolio consists of approximately 61,000 miles of natural gas pipelines and approximately 2,000 miles of natural gas liquid (NGL) transportation pipelines. Through ETP’s investment in Sunoco Logistics, the partnership has another 8,600 miles of crude oil and NGL and refined products pipelines.
Source: Income Investors
Related Articles:
- 3 Stocks Increasing Dividends Like A Champion
- The Next Great Company
- 5 Stocks With a Sustainable Dividend
- Dividend Investing + Value Investing = Superior Returns
- The Dark Side of Dividends
Is This 13.7% Yield Too Good to Be True?
Posted by D4L | Sunday, April 08, 2018 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Late last year, Wall Street had a bit of a panic attack when Fed chairman Jerome Powell suggested this tightening was on autopilot. While th...
-
If you’ve been following this column, you’d know that monthly dividend stocks tend to come from two main types of businesses: real estate an...
-
Are you sick and tired of low interest rates? Certificates of deposit pay next to nothing. Bonds yield only three or four percent a year. Su...
-
These three picks are all up more than 10% so far in 2019. The three themes are LNG, specialized healthcare, and small banks. The yields ran...
-
This company makes a compelling value proposition on the dip for DGI investors. The REIT has strong portfolio stats and a conservative AFFO-...
-
This company makes a compelling value proposition based on valuation, risk/reward, yield, and upside potential. I added this hotel REIT las...
-
Stocks with high dividend yields can be great, but if a stock has a high dividend yield and also has lots of long-term growth potential and ...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
At its opening price of $101 per share on Jan. 7, MSFT stock had a market cap of $782 billion, which made it the most valuable company in th...
-
If a company pays, say, 14%, you would only need to put up $71,429 to earn $10,000 in annual dividends. Of course, we know that double-digit...

0 comments
Post a Comment
Post a Comment