Dividends4Life: This 16% Yield Just Became More Secure

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This 16% Yield Just Became More Secure

Posted by D4L | Friday, November 02, 2018 | 0 comments »

The yield is 16.%, and going ex-dividend on 11/6/18. Management just made an acquisition which will improve its distribution coverage to well over 1X, starting in 2019, and they see trailing coverage rising to 1.20 by YE 2019. The price is 15% below analysts' lowest price target, and 26% below the consensus price target.

Own any "accidental" high yielders? The type of stock which has fallen in price, but management has maintained the quarterly distribution? Such is the case with Martin Midstream Partners LP (MMLP), a company whose price/unit has run from a January high of $16.95 to a September low of $10.65 in 2018. The problem has centered around MMLP's struggles with earnings and distribution coverage. Although revenue has had steady quarterly gains, these haven't translated into gains in EBITDA or DCF.

Source: Seeking Alpha

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