If you've ever owned a royalty LP, you may have encountered the problem of royalties based on fixed assets, which wind down over time, as does the royalty income stream. The yield is 7.8%, management has raised the payout five straight quarters, with more hikes on the way. It has received multiple upward earning estimate revisions over the past month. Insiders have been buying - the price is 16.8% below consensus price target. They'll convert to a C-Corp in Sept. before the next distribution - no K-1 for future distributions.
Kimbell Royalty Partners LP (KRP) is a royalty LP with a big difference - it's actively managed, meaning that it can grow its interests through acquisitions and dropdowns. KRP's management has actively grown its interests via acquisitions and organic growth since its February 2017 IPO. Production grew 19% and revenue grew 44%, as of 3/31/18. Based upon the Q1 '18 DCF figure of $0.42/unit, this 20% rise implies DCF of ~$0.50/unit, which would translate into a ~9% yield, since KRP pays out ~100% of its cash available for distribution:
Source: Seeking Alpha
Related Articles:
- 7 Higher Yielders With A Low Free Cash Flow Payout
- The Will to Win
- 5 Dividend Stocks With A 20% Yield In 20 Years
- 4 Industrial Strength Dividend Growth Stocks With Yields In Excess Of 2.7%
- Finding Low Risk Dividend Stocks
New C-Corp Yields 8%, 5 Straight Hikes, Insiders Buying, Estimates Rising, Record Earnings
Posted by D4L | Friday, September 28, 2018 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
In this series, we look through the most recent Dividend Channel ''DividendRank'' report, and then we cherry pick only those...
-
Owning dividend stocks can be a great way to both generate cash flow and beat the market long term. And if you can find stocks that are over...
-
I wanted to find an ideal list of stocks with high dividend yields. The stocks would have to be cheap as well. And the dividends would have ...
-
Long-time readers know I’m a big fan of the insurance industry because of one quirk in their business model. Customers always pay premiums u...
-
It has been a glum time for ExxonMobil (NYSE:XOM) shareholders. Regardless of whether you’re looking at the past one year, five years, or te...
-
Investors tend to gravitate to dividend stocks, particularly when those equities increase their payout on an annual basis. When these types ...
-
“Cheap” stocks aren’t necessarily the best cheap stocks to buy. And dividend stocks, even those with a high payout, aren’t necessarily safe....
-
This company's management has raised the quarterly distribution 71 straight quarters, 22 straight years - it will be a Dividend Aristocr...
-
The markets have been doing very well over the past several weeks, and finding some good bargains has been a bit challenging of late. Howeve...
-
Dividend-paying companies are beacons of profitability. Generally speaking, a company isn't going to share a percentage of its profit or...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.