When a dividend yield gets close to the double digits, it's often a sign that the market sees a payout cut coming. While this company's financial metrics suggest otherwise, there is one area of uncertainty that has the market spooked. That dynamic makes this stock a compelling opportunity for investors who aren't afraid of accepting more risk for a potentially richer reward.
Last year was both the best of times and the worst of times for Tallgrass Energy Partners (NYSE:TEP). On the one hand, the midstream MLP delivered outstanding financial results in 2017, with earnings, cash flow, and distribution coverage all coming in at the high end of its guidance range. Because of that, the company was able to boost its payout by an impressive 18%, which fueled 32% distribution growth at its parent Tallgrass Energy GP (NYSE:TEGP). However, despite all that progress, Tallgrass Energy Partners' stock has lost a quarter of its value in the past year, which when combined with that big-time distribution increase, has pushed its yield up to 9.9%.
Source: Motley Fool
Related Articles:
- 7 Higher Yielders With A Low Free Cash Flow Payout
- The Will to Win
- 4 Dividend Stocks For A Confident And Secure Future
- To Infinity and Beyond!
- 6 Dividend Growth Stocks With A Low P/E
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
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 ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Add it all up, and things are starting to get tense. That leaves investors wondering where they can go for safety. After years of tech outpe...
-
Individual investors were jolted by the sudden reappearance of market volatility in October. Given a range of issues spanning natural gas av...
-
Are you on the hunt for a generous and reliable dividend stock? If so, the list of Dividend Aristocrats -- comprised of those few companies ...
-
If you’ve paid any attention to the financial news lately, you’d know that market sentiment has changed. This shouldn’t come as a surprise; ...
-
Most income investors have long-term horizons. That is, they want to collect dividends not for just a year or two, but indefinitely into the...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
If your income portfolio gives you the same dollar value of dividends as it did 10 years ago, your purchasing power has essentially deterior...
0 comments
Post a Comment
Post a Comment