This LP currently offers a 9.5% distribution yield. It has reported a distribution coverage ratio of 2.0 but this metric has proved unreliable in many cases. Investors should focus on the free cash flows. While the free cash flows have been poor in 9 of the last 10 years, they are improving at a fast clip thanks to the upcoming end of the multi-year investment program.
Energy Transfer (ET) is a master limited partnership [MLP] that currently offers a 9.5% DISTRIBUTION YIELD. When a stock offers such an extraordinary yield, the market usually indicates that the distribution is at the risk of being cut. Therefore, investors should perform their due diligence before purchasing high-yielding stocks. Otherwise, they run the risk of incurring excessive losses. While my experience has shown that most high-yielding MLPs eventually cut their distributions, in this article I will discuss why the distribution of Energy Transfer is safer than most investors think.
Source: Seeking Alpha
Related Articles:
- 4 Higher-Yielding Financial Services Stocks With Rising Dividends
- 5 Higher Yield Dividend Growth Stocks
- Successful Investors Take The Emotion Out
- 5 Under-Valued Dividend Growth Stocks
- Dividend Stocks vs. a Safe Distribution Rate
This 9.5% Yield Is Safer Than Most Investors Think
Posted by D4L | Saturday, October 26, 2019 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
The fact is that there are many interesting high-yielding companies that have good long-term prospects. Besides, as the markets get more vol...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
Good income investments often come with strong dividend yields, delivering income that's higher than an investor could find at a bank or...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Both of the listed stocks are often discussed on the Reddit page, and for very different reasons. The former pays a frequent special dividen...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
Interest rates remain very low and given the ongoing economic impact from COVID-19, they will likely stay very low. This low-rate environmen...
-
When it comes to dividend stocks, investors can fall into the trap of focusing on dividend yield over all else. That can be a dangerous stra...
-
Safety and tranquility are both important aspects of investing for retirement. Yes, we want stocks with meaningful upside. We also -- howeve...

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