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Midstream prospects

Recent article Oil Demand May Have Bottomed: What Midstream Investors Need To Know

  • "Never in history have so many economies shut down all at once. The result has been an estimated peak oil demand decline of -30% in April.
  • The International Energy Agency estimates that, for Q2, oil demand will decline 25 million bpd or approximately 25%.
  • When it comes to the incredible uncertainty facing the entire North American Energy industry, and midstream in particular, you want to go with the largest, most diversified, and financially strongest."

We’ve seen oil crashes before. We’ve seen oil prices rise to excessive degrees as well. It all depends on what economic issues and political pacts are going on in and around the world.

  • What is the U.S. dollar doing?
  • What is OPEC doing?
  • Are there any wars going on and where?
  • How is global business doing?
  • Have there been any new oil discoveries and where?

Source (Note that this 'source' is from 2016)

The answers to those questions all go into determining whether oil is up or down in price. So when huge chunks of the global economy go on break all at the same time that OPEC decides to declare “war” on Russia?

Then you get the worst oil crash in history – one that’s so big and so bad that it’s shocked literally every energy analyst. Because literally no energy analyst – or anyone else – has ever seen anything like this before.

That means talking about it is tricky. But let’s try all the same, starting with (strangely enough) April 20, 2020: a day that will live in infamy."

Personally, I have a sizable position in the midstream MLP ETF, AMLP, with 82% of its assets in its top 10 holdings:

Top 10 Holdings (81.83% of Total Assets) 
   
NameSymbol% Assets
Magellan Midstream Partners LPMMP12.98%
Enterprise Products Partners LPEPD11.89%
MPLX LP Partnership UnitsMPLX11.11%
Phillips 66 Partners LPPSXP10.73%
Energy Transfer LPET8.05%
Plains All American Pipeline LPPAA7.49%
TC Pipelines LPTCP6.07%
Shell Midstream Partners LPSHLX5.03%
Cheniere Energy Partners LPCQP4.48%
EQM Midstream Partners LPEQM4.00%

 

Regardless of how much oil is produced, or consumed, most of it has to be transported from well to refinery via midstream infrastructure.  AMLP bottomed on March 18 and has risen since.  At today's NAV and ttm distributions, AMLP yields 15%.  There is, obviously, the risk of these guys cutting their distributions this quarter, and going forward.  There's also the chance that some will raise their distributions.  After all, 5 of these top 10 are divey aristrocrats.

ElLobo, de la casa de la toro caca grande
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Re: Midstream prospects


@ElLobo wrote:

 

Personally, I have a sizable position in the midstream MLP ETF, AMLP, with 82% of its assets in its top 10 holdings:

Top 10 Holdings (81.83% of Total Assets) 
   
NameSymbol% Assets
Magellan Midstream Partners LPMMP12.98%
Enterprise Products Partners LPEPD11.89%
MPLX LP Partnership UnitsMPLX11.11%
Phillips 66 Partners LPPSXP10.73%
Energy Transfer LPET8.05%
Plains All American Pipeline LPPAA7.49%
TC Pipelines LPTCP6.07%
Shell Midstream Partners LPSHLX5.03%
Cheniere Energy Partners LPCQP4.48%
EQM Midstream Partners LPEQM4.00%

 

 


 

ElLobo, I hold a jag of the two largest components, Magellan (MMP) and Enterprise Products (EPD).  Fifteen year holdings.  I also hold two different preferreds of Energy Transfer.

In March, having determined that climate change, the amount of single-use plastic bags in oceans and Adam Schiff were not going to dominate the news anymore, I tried to take advantage of what the market was offering.  On three or four bigly down days, I bought stuff like a maniac.  Hadn't had that much fun since early '09.

Stuff was being offered that, to my mind, was just craziness.  Panic time, I guess.  There were days when you could pick up MMP at a 15% yield.  And EPD could also be had at that same yield.  I added to both during March, not at the absolute lowest price but not too far off.  I believe I posted those buys on a couple of different threads.

An Energy Transfer preferred (ETP-D) paying $1.90 traded below $10 for a bit.  A 19% yield.  A preferred.  It's back at $20 now.

Both MMP and EPD had decent first quarters but recognized that bad stuff is still down the road.  They've made adjustments, reducing capital expenditures, looking to cut costs, etc.  Doing the stuff I think you'd expect.

As to distributions . . . . . MMP has indicated that they will keep the current distribution through this year.  And EPD made similar noises, although in a somewhat more indirect way.

Today MMP is yielding 9.8% and EPD is yielding 10.3%.  The Energy Transfer preferred is at a 9.5% yield.

 

EDIT TO ADD:  OOPS.  I just noticed there's another in that top 10 that I hold.  TC Pipelines (TCP).  Also a fifteen year hold but I did not add to that during March.

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Re: Midstream prospects

The Federal Reserve bank has bought "Investment Grade" bonds in the past.  That is has always been one of the benefits of being able to maintain a credit rating of BBB or better. In doing this, the Fed has helped insure market liquidity.

Junk bonds, on the other hand, have historically been thinly traded.  Some issues even require that an appointment is made in order to negotiate a trade. One side effect from two decades of low treasury yields has been the retail reach for yield into the junk space.

The federal reserve recently began buying junk bonds, and the market responded. My understanding is that fed action is limited to issues that were rated as BBB or better before March 22nd. This will protect downgrades, but I am not certain about lower rated bonds.

The energy sector has a major footprint in the junk bond universe.  I am not sure how that sorts out at the company level. I certainly don't know much of anything about MLP's. Although, I did own AMID in 2016 which does not account for much.

The only reason I am bringing this up is because investing in a company with a credit rating of BBB is a much different thing than investing in a company with a BB rating in terms of surviving a difficult recession if it comes to that.

Right now I own EXXON, and that is the only energy stock I have. I am interested in your credit rating thoughts concerning the MLP companies in the index.

Thank you,

Holiday

 

 

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Re: Midstream prospects

Wasn't AMLP roughly $20 six years ago?   It's now trading under $5.   Has been dangerously dead money the past 5 years.  Can an investor have faith in the NAVs or perceived MOATs after such a move?   A MOAT is only as good as management's ability to run the business.   The stock market doesn't seem to have faith in NAVs, MOATs, and management.   If Royal Dutch and Disney's balance sheets couldn't afford the current dividend, how can most of these companies?   Too many concerns in this space for me.

I am not a big investor in energy now as I don't like most balance sheets or the demand for oil over the next few years.   

 

   

 

 


@ElLobo wrote:

Recent article Oil Demand May Have Bottomed: What Midstream Investors Need To Know

  • "Never in history have so many economies shut down all at once. The result has been an estimated peak oil demand decline of -30% in April.
  • The International Energy Agency estimates that, for Q2, oil demand will decline 25 million bpd or approximately 25%.
  • When it comes to the incredible uncertainty facing the entire North American Energy industry, and midstream in particular, you want to go with the largest, most diversified, and financially strongest."

We’ve seen oil crashes before. We’ve seen oil prices rise to excessive degrees as well. It all depends on what economic issues and political pacts are going on in and around the world.

  • What is the U.S. dollar doing?
  • What is OPEC doing?
  • Are there any wars going on and where?
  • How is global business doing?
  • Have there been any new oil discoveries and where?

Source (Note that this 'source' is from 2016)

The answers to those questions all go into determining whether oil is up or down in price. So when huge chunks of the global economy go on break all at the same time that OPEC decides to declare “war” on Russia?

Then you get the worst oil crash in history – one that’s so big and so bad that it’s shocked literally every energy analyst. Because literally no energy analyst – or anyone else – has ever seen anything like this before.

That means talking about it is tricky. But let’s try all the same, starting with (strangely enough) April 20, 2020: a day that will live in infamy."

Personally, I have a sizable position in the midstream MLP ETF, AMLP, with 82% of its assets in its top 10 holdings:

Top 10 Holdings (81.83% of Total Assets) 
   
NameSymbol% Assets
Magellan Midstream Partners LPMMP12.98%
Enterprise Products Partners LPEPD11.89%
MPLX LP Partnership UnitsMPLX11.11%
Phillips 66 Partners LPPSXP10.73%
Energy Transfer LPET8.05%
Plains All American Pipeline LPPAA7.49%
TC Pipelines LPTCP6.07%
Shell Midstream Partners LPSHLX5.03%
Cheniere Energy Partners LPCQP4.48%
EQM Midstream Partners LPEQM4.00%

 

Regardless of how much oil is produced, or consumed, most of it has to be transported from well to refinery via midstream infrastructure.  AMLP bottomed on March 18 and has risen since.  At today's NAV and ttm distributions, AMLP yields 15%.  There is, obviously, the risk of these guys cutting their distributions this quarter, and going forward.  There's also the chance that some will raise their distributions.  After all, 5 of these top 10 are divey aristrocrats.


 

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@Holiday wrote:

 

The energy sector has a major footprint in the junk bond universe.  I am not sure how that sorts out at the company level. I certainly don't know much of anything about MLP's. Although, I did own AMID in 2016 which does not account for much.

The only reason I am bringing this up is because investing in a company with a credit rating of BBB is a much different thing than investing in a company with a BB rating in terms of surviving a difficult recession if it comes to that.

 


The last I checked Magellan and Enterprise Products had BBB+ or Baa1 ratings.

I don't know about ratings for other companies.  I don't worry about stuff that I don't need to worry about.

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@cliff wrote:

@Holiday wrote:

 

The energy sector has a major footprint in the junk bond universe.  I am not sure how that sorts out at the company level. I certainly don't know much of anything about MLP's. Although, I did own AMID in 2016 which does not account for much.

The only reason I am bringing this up is because investing in a company with a credit rating of BBB is a much different thing than investing in a company with a BB rating in terms of surviving a difficult recession if it comes to that.

 


The last I checked Magellan and Enterprise Products had BBB+ or Baa1 ratings.

I don't know about ratings for other companies.  I don't worry about stuff that I don't need to worry about.


 

Cliff,

On Jan 10th, 2020 you posted the following.

In the spirit of I'll-show-you-mine-if-you-show-me-yours, here are ones I already hold that currently yield more than 7%:

Targa Resources (TRGP)  9.2% yield

Macquarie Infrastructure  (MIC) 9.1% yield

Energy Transfer (ET)  9.1% yield

Enbridge Series 5 (EBGEF)  6.9% yield
    
Iron Mountain (IRM)  8.0% yield

Tanger Outlet (SKT)  8.7% yield

Nustar Logistics (NSS)  8.6% yield

American Finance Trust Series A (AFINP) 7.5% yield

Ladenburg Thalman Series A (LTS-A) 8.0% yield

AGNC Investment Corp (AGNCO)  7.2% yield

 

 At one time you were thought to be the "king supreme" of the midstream arena and the self-proclaimed MLP expert. Since most of your recommendations have subtracted value from portfolios over the decade, one would think you'd become more diversified.

At one time KMI was your second-largest holding, your KMI warrant recommendations expired worthless and your million dollar adventure into MLPL was both expensive and instructive. If you have enough left over to retire IMHO, I would suggest you diversify your holdings.

Congratulations on MMP and EPD, even blind squirrels find an occasional nut.

Stay safe buddy and try posting more, you have some great stories.

veni vidi vici vti
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@sugarhill6@Holiday 

My only point is that oil reached a historical LOW back in March, and so all oil related companies tanked, not because of any virus scare, although the economic shutdown tanked the demand for oil.  Gasoline was selling at an all time low, inflation adjusted.

There's 3 plays in oil at any point in time, downstream, midstream, and upstream.  The 'safest' bet, in my opinion, is the midstream sector.

Most around here invest in individual MLPs, or their preferreds, as we have discussed extensively.  I sold out my individual holdings last year but now, at that historical low for an ETF, AMLP seems a decent bet on both capital appreciation (as the oil market recovers over the next few months) AND as a source of decent income.

The risk fear in MLP land is that of bankruptcies for the smaller, higher yielding, lower quality companies.  Going with AMLP, rather than any of the individual guys, gives me diversification among the big guys.

Anyhow, the article I referenced in my OP was a very interesting take on things.

ElLobo, de la casa de la toro caca grande
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sugar --

Natural gas prices were already beaten far down before the virus was even thought of.    While there will continue to be massive loss of demand for gasoline as people fly and drive less, a population of stay-at-homes will still consume natural gas.  I believe demand in natural gas will drop less than crude, both US and globally.

I'm thinking NG transporters are good stocks to trade short term while some of their preferreds, now tossing off 10% +/- yields are solid long-term holds.

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@richardsok wrote:

sugar --

Natural gas prices were already beaten far down before the virus was even thought of.    While there will continue to be massive loss of demand for gasoline as people fly and drive less, a population of stay-at-homes will still consume natural gas.  I believe demand in natural gas will drop less than crude, both US and globally.

I'm thinking NG transporters are good stocks to trade short term while some of their preferreds, now tossing off 10% +/- yields are solid long-term holds.


The third largest MLP in AMLP is MPLX, one of the larger players here in Marcellus/Utica land.

ElLobo, de la casa de la toro caca grande
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@cliff wrote:

@Holiday wrote:

 

The energy sector has a major footprint in the junk bond universe.  I am not sure how that sorts out at the company level. I certainly don't know much of anything about MLP's. Although, I did own AMID in 2016 which does not account for much.

The only reason I am bringing this up is because investing in a company with a credit rating of BBB is a much different thing than investing in a company with a BB rating in terms of surviving a difficult recession if it comes to that.

 


The last I checked Magellan and Enterprise Products had BBB+ or Baa1 ratings.

I don't know about ratings for other companies.  I don't worry about stuff that I don't need to worry about.


Hi Cliff,

Your picks might be in a sweet spot for fed purchases if either suffers a downgrade to junk status. Access to capital during a crisis is certainly helpful. Their lower-rated kin may not be so fortunate. You probably already know this which is why they are in your portfolio.  Just talking out loud while working through a few things here.

Holiday

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@ElLobo wrote:

@sugarhill6@Holiday 

The risk fear in MLP land is that of bankruptcies for the smaller, higher yielding, lower quality companies.  Going with AMLP, rather than any of the individual guys, gives me diversification among the big guys.

 


Pick your poison:

Default rates by credit spectrum.jpg

Absent mergers and acquisitions, I suspect that this 5-year time horizon chart will change by the end of 2020.  I bought XOM assuming that they may acquire distressed companies facing bankruptcy.

Holiday

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"Pick your poison:"

From my OP:

Knowing all of this, the six safest names on the midstream list – ranked by safety, incorporating potential cash flow disruption, credit ratings, liquidity, and debt maturity schedules – are:

  1. Enterprise Products Partners (EPD)
  2. Enbridge (ENB)
  3. TC Energy Corp. (TRP)
  4. Pembina Pipeline Corp. (PBA)
  5. Kinder Morgan (KMI)
  6. Brookfield Infrastructure Corp. (BIPC)

 

Ipso facto, if oil is over $30 by the end of the year, just 170 companies might go bankrupt over the coming 20 months or so.

Other estimates put that total as low as 100 by the time the entire oil crash is over. Though those assume the global economy experiences a relative V-shaped recovery, which is far from guaranteed."

Pick your poison with individual MLPs or spread your risk with an ETF.  Oil won't go away, especially big oil, but big oil isn't much into midstream space!

Just my opinion, not a recommendation.  Do you own DD.

ElLobo, de la casa de la toro caca grande
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"I bought XOM assuming that they may acquire distressed companies facing bankruptcy.

Holiday"

I seriously doubt XOM, or RDS, or CVX, or BP, or any other big oil company will acquire the small MLP guys going bankrupt.  Nevertheless, I'm not comfortable going with any one or two individual guys in this topsy turvy world of oil.  Way too complicated.

I'm curious, Holiday.  Why XOM and not one of the others, or an ETF holding all of 'em?  I've seen several threads on this subject.  Not to be critical in any way.  To each his/her own.

ElLobo, de la casa de la toro caca grande
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@ElLobo wrote:

"I bought XOM assuming that they may acquire distressed companies facing bankruptcy.

Holiday"

I seriously doubt XOM, or RDS, or CVX, or BP, or any other big oil company will acquire the small MLP guys going bankrupt.  Nevertheless, I'm not comfortable going with any one or two individual guys in this topsy turvy world of oil.  Way too complicated.

I'm curious, Holiday.  Why XOM and not one of the others, or an ETF holding all of 'em?  I've seen several threads on this subject.  Not to be critical in any way.  To each his/her own.


Hi EL,

XOM was yielding over 10% when I bought it, and the return has been about 26%  since then. I bought it on the 24th, so I wanted big and safe; not small with a risk of downgrade to junk status. This was before I knew the fed would backstop companies with a downgrade to junk. This is entirely new; the fed never bought junk bonds before.

I did not want an energy ETF because it would include some of the companies I would not want to own. I did look at PSX, COP, and CVX. In the end, I wanted the one least likely to fail.

More is known 6 weeks later; but I did the best I could at the time. There were a lot of bargains to choose from, and I pretty much stuck with large high-quality growth with yields much higher than normal.  I bought / added lots of Aristocrats including the DGRO ETF. 

2016 was a similar disaster in the energy sector. I bought AMID with a 40% yield. It merged with the refiner Western Resources, and I got a stock split.  I sold it about a year later, and it was gobbled up by ArcLight and taken private. 

I think there will be some changes in ownership even though I don't know exactly who or what that will be.

Holiday

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EL,

Lets look at this from a different angle

 

5-6 credit trends.jpg

Notice that yield gap between the BBB's and the BB's. The fed will buy downgrades to BB's but not any that were already there. I would not buy a junk index that targets the oil patch, but I might buy an individual company from it.

I do own indices that target investment grade (bottom 4 lines)

Holiday

 

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@Holiday wrote:

 

EL,

Lets look at this from a different angle

 

5-6 credit trends.jpg

Notice that yield gap between the BBB's and the BB's. The fed will buy downgrades to BB's but not any that were already there. I would not buy a junk index that targets the oil patch, but I might buy an individual company from it.

I do own indices that target investment grade (bottom 4 lines)

Holiday

 


I don't get the connection you're trying to make between corporate debt and stock/mlp prices/yields.  Are you trying to relate the divey yields of individual MLPs to their debt credit ratings and debt yields?

At any rate, you might be interested in the AMLP management take on things (The Fundamentals vs. the Panic - Alerian MLP ETF (AMLP):

"Debt profiles for AMLP constituents do not point to significant near-term funding issues: Just 12.2% of total debt is coming due over the next two years, and less than 40% is scheduled to mature over the next five years.3 Further, 68% of AMLP’s underlying index by weighting currently carries an investment grade rating"

ElLobo, de la casa de la toro caca grande
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@ElLobo wrote:

@Holiday wrote:

 

EL,

Lets look at this from a different angle

 

5-6 credit trends.jpg

Notice that yield gap between the BBB's and the BB's. The fed will buy downgrades to BB's but not any that were already there. I would not buy a junk index that targets the oil patch, but I might buy an individual company from it.

I do own indices that target investment grade (bottom 4 lines)

Holiday

 


I don't get the connection you're trying to make between corporate debt and stock/mlp prices/yields.  Are you trying to relate the divey yields of individual MLPs to their debt credit ratings and debt yields?

At any rate, you might be interested in the AMLP management take on things (The Fundamentals vs. the Panic - Alerian MLP ETF (AMLP):

"Debt profiles for AMLP constituents do not point to significant near-term funding issues: Just 12.2% of total debt is coming due over the next two years, and less than 40% is scheduled to mature over the next five years.3 Further, 68% of AMLP’s underlying index by weighting currently carries an investment grade rating"


EL,

You may not know this, but the success of a company is usually related to it's cost of capital. They can sell stocks, sell bonds, or go to the bank for a loan. Their credit worthiness determines the interest rate, or dividend, or pound of flesh they must pay. 

Struggling companies struggle even more under heavy debt loads caused by the markets perception of risk.

Credit ratings are important to individuals and corporations. High yield does not indicate safety.

Holiday

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I like the "energy generation" side of natural gas.  I don't like the "industrial/commercial" side of natural gas under current conditions, which I think is 45-50% of the business.  I definitely think there is opportunity to buy into this market, individual names.  I agree, as it was said in by others, that we have probably seen the bottom for oil.   I don't think we have seen the wreckage in the industry just yet.   

I do own one energy name, HMLP, Hoegh LNG Parnters LP.    At $5, and a 30% yield, I thought it was a steal.  The company is mindful of their balance sheet, and their ships have long term contracts.  Nothing is bullet proof, so I still view this as a speculative play.    I also own their preferred, so agree with approaching from this angle as well.    

 

 


@richardsok wrote:

sugar --

Natural gas prices were already beaten far down before the virus was even thought of.    While there will continue to be massive loss of demand for gasoline as people fly and drive less, a population of stay-at-homes will still consume natural gas.  I believe demand in natural gas will drop less than crude, both US and globally.

I'm thinking NG transporters are good stocks to trade short term while some of their preferreds, now tossing off 10% +/- yields are solid long-term holds.


 

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@Holiday wrote:

@ElLobo wrote:

@Holiday wrote:

 

EL,

Lets look at this from a different angle

 

5-6 credit trends.jpg

Notice that yield gap between the BBB's and the BB's. The fed will buy downgrades to BB's but not any that were already there. I would not buy a junk index that targets the oil patch, but I might buy an individual company from it.

I do own indices that target investment grade (bottom 4 lines)

Holiday

 


I don't get the connection you're trying to make between corporate debt and stock/mlp prices/yields.  Are you trying to relate the divey yields of individual MLPs to their debt credit ratings and debt yields?

At any rate, you might be interested in the AMLP management take on things (The Fundamentals vs. the Panic - Alerian MLP ETF (AMLP):

"Debt profiles for AMLP constituents do not point to significant near-term funding issues: Just 12.2% of total debt is coming due over the next two years, and less than 40% is scheduled to mature over the next five years.3 Further, 68% of AMLP’s underlying index by weighting currently carries an investment grade rating"


EL,

You may not know this, but the success of a company is usually related to it's cost of capital. They can sell stocks, sell bonds, or go to the bank for a loan. Their credit worthiness determines the interest rate, or dividend, or pound of flesh they must pay. 

Struggling companies struggle even more under heavy debt loads caused by the markets perception of risk.

Credit ratings are important to individuals and corporations. High yield does not indicate safety.

Holiday


Holiday,

You may not know or understand this but the dividend a company pays depends completely on earnings, not their credit worthiness.  Although the bond yields do depend on it, the dividend yield, on both their common and preferred stock, doesn't.  Yearly profits are first paid out to bond holders, then preferred stock holders, then common stock holders, in order of the relative 'riskiness'.  What's left is retained by the company, or wasted on ill-timed acquisitions!  8-)

I do agree, however, that high yield debt is 'riskier' than lower yield debt, as is longer term debt riskier than shorter term debt, although the risks are different.  The first is that of default on the debt, the second is inflation risk.  Ditto for preferred stock, where the value placed on an individual preferred is usually, say, $25 at issue, paying a certain divey amount, but the preferred stock market 'prices' 'em based upon it's perception of the ability of the company to continue paying the divey.  Other factors, such as call features and whether missed diveys accumulate, also factor in.

But common stock diveys are different.  The company declares a divey.  The market, in turn, determines the riskiness of the divey itself (the dollar amount of the divey) but also determines share price of the stock.  The 'quality' of the divey is usually NOT the primary factor in that determination.  If it were, how would the market determine the share price of a non-divey paying growth stock?  8-))

There ARE ways for evaluating an actual divey, for example, the Dividend Discount Model.  I would propose that very few investors, myself included, use that model to determine a 'fair' value for an individual stock, let alone it's 'riskiness'!

Let me pose a question to you.  XOM is projected to pay $3.48 divey next year.  Was it riskier back on March 23, whenever it had an 11% yield or back in December, whenever it had a 5% yield?  I would opine that, back in December, XOM had a higher probability of a negative return, going forward, at $70/share than it did in March, trading at $32, hence it is LESS risky at a HIGHER yield!

BTW, you also may not realize that AMLP is an ETF, not an individual MLP.

ElLobo, de la casa de la toro caca grande
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@ElLobo wrote:

<snip>

Let me pose a question to you.  XOM is projected to pay $3.48 divey next year.  Was it riskier back on March 23, whenever it had an 11% yield or back in December, whenever it had a 5% yield?  I would opine that, back in December, XOM had a higher probability of a negative return, going forward, at $70/share than it did in March, trading at $32, hence it is LESS risky at a HIGHER yield!


Hi El,

That is an interesting way of phrasing that. I cannot say that I have ever thought about it like that before. 

I am looking at it through the lens of market perception. During a period of crisis, investors run for their lives. Stock price plummets, and yield skyrockets. From the markets perspective, risk is higher.

From my perspective, XOM is a dividend aristocrat, and has increased it's dividend for 37 straight years. I don't think they are interested in walking away from that distinction. The 11% yield made it worth the risk under this circumstance.

Exxon was a causality of indiscriminate selling when the market panicked and sold entire index. Exxon was a falling angel while other high yielding stocks are stumbling devils. I looked for, and bought, Falling Angels.

But, your argument presumes that what is true in one specific case is equally true in ALL cases which share that one single characteristic. You are arguing a false equivalency. True in a few cases, but not true in all cases you cite.

Try high yielding Dividend Aristocrats for starters. You will find the pool that I fished many stocks out of on the 24th. 

Thank you,

Holiday

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