I've owed this stock for 8 years, just love it. With all the projects in place, cost of capital, savvy exec team (which are great of CC BTW, you got to listen to them), does anybody agree they could double in size over the next 4 years, or am I dreaming
There's an old adage that you should cut your losses and let your winners run. This has been particularly true of EPD. I've very seldom made a mistake in buying a stock, but I've made many disastrous mistakes by selling. If I had held, and never sold, every stock I ever bought, I'd have a net worth today in the billions. Literally. When I began investing, the DJIA was around 520 vs. 17,000 today. It has taken me over 60 years of investing to finally learn to do the opposite of what my gut feelings tell me to do. It feels good to take a profit until you see the stock you sold continue to soar higher. My best advice is to forget that the word sell exists. Own good companies and stay with them.
If you don't know the answer don't respond.His question was clear he asked for an answer not instructions on how to get there. You would have sounded more intelligent which seem to be your goal (blowing smoke) just answer the question. You know how it goes "Better to be thought a fool than to open your mouth and remove all doubt".
Also, you can change which positions are contributing to the FRIP at any time, up to and including the payout date of that position. And if it wasn't clear, all purchases occur free of charge - that's the point - you can reinvest little bits of money - as little as one share's worth - without incurring a $7 trading fee.
I keep mine in the DRIP with EPD because at the time I wanted to start DRIPing my EPD units, Scottrade did not participate in it. I don't know if they do now, or not. Currently Wells Fargo is the Direct Registrar for EPD, so that's where my account is. It used to be BNY Mellon, but they changed 1-2 years ago so the account migrated to Wells. It's not as convenient as having it in my brokerage account but I don't trade around my EPD position anyway so it's not an issue for me.
This is all wrong. I use it regularly. Here is how it works. The dividends for the positions you specify (all or none of the dividend, per position) goes into a separate "FRIP account". On the date that you specify, the money in this side account is reinvested in stocks of your choosing. However, only whole shares are purchased so any remainders are kept in the ongoing balance of the FRIP account.
You specify what goes in, what goes out, how that gets allocated to new stock, and when the trades happen (so far the trades happen around mid-day on the day I specify). Only whole shares are purchased. FRIP funds that don't fit into whole shares remain in the account and will be applied toward the next trade.
The answers to all your questions is readily available under Company Events (right above Message Boards) and Historical Prices (4th down ion the Quotes section.) It's time for you to learn how to find information on your own and stop depending on others to do it for you.
Whats the equivalent yield after cap gains and recapture?
and sdrl's divi is questionable moving forward and LINE has never impressed me... ( neither is growing the divi/dist also which may limit share appreciation)
Very High yields equal risky equity
ETP seems reasonable but its a 6.5% yield not an 8 or 9%
thanks for the posts ,
yes thats true but my current ( rather former) position of 100 k yielding 3.8 could yield 8 or 9 easily with sdrl bbep line etp and 6.5 with utf... .double annually with the same value in the market ,
anyway ill keep my 1000 shares and sleep well with them
If you have owned EPD for a while then selling part of your units means you will take a much bigger tax hit. You cannot use any passive loss carryforwards until you sell yuor entire position. Your plan completely missed the fact that EPD is a different MLP model. They ratain enough cash to need to issue only a very few new units. Thus the value of existing units goes up each year. They also have increased the divided=nds paid out by .10 a year (the actual $$ paid out). Most companies do not do that. EPD has a low cost of capital and tons of projects and last but not least - the ability to increase the rate of payouts if inflation and interest rates rise significantly. Do not know it is a bargain today but certainly nothing I would be selling.
If you're already in EPD, why are worried about the current yield? Your actual yield is based on your cost basis, not what the current share price is. Depending on how long you've been in EPD, your actual yield is probably considerably higher than the current 3.8%.
i keep trimming my position in epd from 1500 down to 1000 thinking the dividend has gotten to be so small a percent and this thing has to be topped out but it just keeps chuggin upward. my gut says take more out and into a higher yield , but then i look at all the gain ive missed with that gut feeling , your thoughts
as I thought about the possibility of continued 1 cent increases and a doubling of the growth rate I came to the conclusion that there is a small possibility that they do move in this direction....
By doubling the rate they put the growth rate in-line/ahead of the newly stated Kinder policy.... but Kinder has a policy of paying out every last cent of available cash flow where we know the exact opposite is true here
I continue to believe that the new KMI is rather overvalued and will see an equalization with EPDs mkt cap
The BOD votes in very late September or early October for the next distribution. They will have most of the Q3 numbers. Most BOD keep intentions pretty close with current SEC regs. We will see. Either a declaration of a policy change or they continue with .01 increases. Could certainly go either way.
I suspect that the BOD gave a lot of thought to the distributions when they decided on the split. As usual, they're playing coy with their intentions. I have a feeling the unit-holders will be pleased with their decision when they finally make their announcement.
Actually I am simply stating the written BOD policy that distributions will be in even penny amounts that the BOD made a couple years ago. Unless they change that policy, EPD would either have no increase (cannot see them doing that) or an increase of .01. Yes, that effectively doubles the CAGR.
Do not think it makes any difference if it is a .005 increase and a .005 special, but EPD responded to a question maybe 18 months ago and said they would only do even penny increases. The result would stil be a .10 increase in one year for the run rate and a doubling of the CAGR to about 10%. Over time this would slowly decrease as it has done over the last 6 or 7 years for EPD with their .01 increases.
are you implying that we will continue to see 1 cent per Q?... IF that were to happen the dist growth rate would double..... I don't see them doing that... but they could stick to the halves and give us a special 1/4.... 1/2 or 1 cent special which would keep the annualized rate in full cent increments