15% Yield, Raised Dividend Again, New Dropdown Assets

Looking for survivors in the high-yield midstream space? This general partner just dropped down $48M in trucking assets. Management is guiding to 1.4X distribution guidance by year end based on the new assets. They're also now targeting a reduced leverage ratio below 4X. Management has raised the quarterly distribution 29 straight quarters.

Unlike many other high-dividend stocks which have cut their dividends, Delek Logistics Partners LP (DKL) has continued to increase its payouts in 2020. This week, DKL's parent/general partner DKL Us (DK) announced an agreement for the dropdown of trucking assets to Delek Logistics for $48 million in cash. The transaction is effective May 1, 2020, and is expected to be immediately accretive to Delek Logistics' distributable cash flow per unit. DKL's logistics assets exist mainly to serve general partner DK's petroleum refining assets and transportation services.

Source: Seeking Alpha

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