Dividends4Life: A 7.4% Yield With Significant Upside, Strong Distribution Coverage, Rising Estimates

Looking for high-yield royalty exposure to US oil and gas production? The yield is 7.40%, with 1.3X coverage in Q2 '18, and trailing coverage is 1.19X. It has received multiple upward earnings estimate revisions from analysts over the past month. The price is 13% below analysts' lowest target and 18% below consensus price target.

Black Stone Minerals LP (BSM), a Houston-based company founded in 1876, has grown to be the "largest publicly traded yield vehicle focused on oil and gas mineral and royalty interests in the United States, with over 20 million mineral and royalty acres with interests in 41 states and 64 producing basins."

Source: Seeking Alpha

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