The parent company (D stock symbol) is a respected electrical utility. We have a utility that has a great source of natural gas. What a brilliant strategy.
Some time ago they earned all their original purchase price so the current 18% dividend rate is profit. I like dividends and with the current increase in gas prices they will pay perhaps $.75 in the next dividend. It sure beats money market rates and has a capital gains potential at current price.
You can get free access to Smith Barney's report. First connect to www.multex.com and follow the instructions from there. Smith Barney downgraded from a 1H (Buy, High Risk) to a 2H (Outperform, High Risk). They state that the current IRR (Internal Rate of Return has dropped below their benchmark of 6.5% and stands at 5.9%. They have set a 12 month price target of $14.25 per unit based on 12 month forward forecast of Net Asset Value per share. Their report came out on August 9th when DOM was trading at $15.81. They also stated that DOM would offer a 6.6% IRR if it traded at $15.25. Good information in the report - worth reading.