Is This 13% Yield Safe?

If you want to make a lot of money over the next few years, then you need to pay attention to natural gas. In the United States, shale drilling has unlocked vast new supplies. Prices have dropped so low, producers burn off excess supplies at well sites. In contrast, overseas, shortages have sent rates soaring. Natural gas trades hands at prices three to four times higher than domestic markets. That has created an opportunity for anyone that can buy gas cheap stateside and sell it abroad.

One of the big winners from this trend is Golar LNG Partners LP (NASDAQ:GMLP). The partnership owns a fleet of ships that carry liquified natural gas (LNG). And with the volume of supplies transported worldwide soaring, Golar has started paying unitholders a 13% yield. But can you trust such a large payout? Let’s dig into this distribution.

Source: Income Investors

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