APU Still stuck today! (Thanks, hind-sight :-) with drop back under $43. The chatter on Bloomberg radio was very "macro" about interest rates and worldwide stuff. I didn't hear much chat about oil, but oil seems to have exhausted its recent (short-covering rally?) runup and headed back to $40.
Who knows what will swing mood tomorrow (Indiana Primary?)?
I have to wait until after mid-month for funds to become available to top off my core position. I'd be happy to do it here near $42.50, but of course lower would be better.
I can't wait for the following month when I'll fave funds to potentially trade these little swings.
I bought it a year ago at an 8.80% yield to park long term forget about. Watched it sell off and watched it come back to right where I bought it. Have made 8.80% over the past year in a market that is overpriced, will go nowhere, and has delivered 3 quarters of falling earnings now. Who needs that? The general market delivers about 9% historically (appreciation + yield). Heck, I have 8.8% yield here, tack on 2% for inflation and at almost 11% I'm beating the general market and am invested in very low risk. APU wont' set the world on fire at this level but I have a place for this yield all day long in my portfolio. I have been adding some SPH of late as I expect it too will price to a comparable yield so I should enjoy some capital gains on top of the yield there. I sold my FGP some time ago as it's coverage is weak and its leverage is high. Far more comfortable being invested in APU #1 and SPH #2 for my propane exposure.
Sentiment: Strong Buy
Most of the country had a warm winter. But I'd rather have an increase each year on this one instead of FGP's one time 2% increase in 20 years.
Just announced another increase to the dividend....12th consecutive year of dividend increases. Agree, this is one great dividend stock. GLTA
No one said you 'had' to rent the tank. If you want a tank and want to shop your propane go buy one, hire an excavator, and install it. All you've done is lock yourself into another distributor where you'll be paying a premuim for propane again (until another 10 years pass and you are complaining about them). It is no scam... Propane distributors take a big risk when they install an UG tank in an environment where the average home owner stays put for only 5-6 years. They are rightfully compensated for the risk they take. If you are so bent about paying a premium for propane WHY DIDN'T YOU JUST BUY YOUR OWN TANK? Answer... YOU DIDN'T WANT TO SPEND THE $ SO THE PROPANE DISTRIBUTOR WILL. PERIOD.
Ever heard the saying you can't have your cake and eat it too?
Sentiment: Strong Buy
If you are a residential propane customer, call around and check you options. I was "stuck" with a company owned tank and used 1000+ gallons per year. For the last two years they have been charging me $1.40 more per gallon than the going rate in my area (had the tank for 11 years so they paid for it many times over). I was surprised to find another distributor that would dig up their tank and replace it with his for only $100. To fall for the Amerigas free tank installation scam. They will get their money back 10X on your free tank.
On another not they are idiots for not selling the tank. I just called to cancel and was willing to give them $1800 for a 10 year old tank and they told me no. So now I dig it up and they can have it back where it will have to be reconditioned before installing somewhere else.
They should be investigated for price gouging. My builder signed up with Amerigas so I was stuck with their tank. I finally had enough and they had the nerve to ask me why I was switching. I saved over $700 in one fillup (500 gallons x $1.46). My new distributor charged be $100 to come dig up their tank and install his. I am the fifth one on my street in the last 12 months. I don't know they think this is a sustainable model. Trying to get $3.45 delivered price for propane when the wholesale cost is 64 cents in my area is by definition price gouging.
I started buying back at $36.45 (10% yield), and just picked up more today at $41.75 (8.8%). Will get my last bit next month to fill out a "normal" position in my portfolio.
THEN if a plunge comes, I'll happily pick up more to overweight for a while.
The payout is well covered so bring on any horrifying headlines!
I wouldn't mind owning it, but don't want to buy it and have it plunge. I don't know if oil/gas issues are done falling yet. Buy and sell for the dividend maybe?
In my experience for what that's worth,...
When I talk to my broker, accountant, friends, or strangers, there is no meaningful difference between units and shares. I don't have need to talk to my lawyer much, so haven't figured out the need to split that hair.
"Shares" and "dividends" are the usual words associated with corporations.
"Units" and "distributions" are the words used often with publicly traded partnerships.
"Shares" and "Units" similarly represent partial ownership or sets of specific rights, as laid out in the company by-laws, prospectus, partnership agreement, trust, or whatnot.
For me, "dividends" registers as "hits my taxes just like 'interest' (with asterisk for 'qualified' potential)", and "distributions" more immediately brings to mind what paperwork I should look forward to come tax time.
My broker, accountant, etc. and I fully understand one another whether or not we mix up "shares" vs "units".
Would someone kindly explain this "unit"
and not "shares" thing? I know APU is a limited partnership thing work K2 forms and all...
But for the life of me, I can't understand the accounting, tax, and ownership of "units" vs. stock shares in other companies?
Why are MLP's so different and complicated?
Can someone explain all this in layman terms?
I bought it for the yield over a year ago when it was delivering about 8.8% yield. I watched it fall to $30 and change as well and then come back. I've even made a few dollars per unit while I collected the yield along the way. I'm not selling it as I have a place a low risk yet nice yield like this in my portfolio all day long. It's easy to do worse than collect a yield like this from the strongest propane distributor. I also own SPH. I bought it at about the same time. I'm still down some $ on that but the cash register keeps on ringing every quarter. It too will eventually price to about an 8%-9% yield in my opinion which is why I mentioned it. You could always split APU in 1/2 and own #1 and #2. Diversification with a combined higher yield and some opportunity for unit price growth. .
This is probably where APU is going to sit... Delivering about an 8.50% yield. Upside is now quite minimal. Can swap into SPH that is delivering a 12% yield and when it eventually prices to about 8.5% it will be a $42/unit LP. That would deliver you a $12+/unit gain. Could also dabble in FGP but it is the highest risk of the three. (APU, SPH & FGP).