I just purchased another 500 shares of NTI which actually puts me a bit over the concentration level I like to be at but believe this stock can see 40.00 by the end of 2014. My reason for believing this is the recurring earnings and future dividends paid. I believe that NTI can pay a dividend of 4.00 per share or a dollar per quarter. I read somewhere that that guidance was given in the 5.00 range for 2013. I don't know if this is true and can not remember where I read it but maybe someone else saw it too. Does anyone have an opinion as to future dividend payments. I model my purchases and opportunity comparisons at 4.00 per share as a best case on a going forward basis. Would be interested in other opinions. TIA.
Your mistake is in believing that a variable distribution refiner like this would be valued at a 10% yield. The market is pretty consistently telling you that these variable distribution refiner MLPs will be given yields in the 20%+ range (due to high risk and uncertainty about future distribution levels).
You seem to have NO ability to judge risk. Yes Nti has more risk than other MLPS but the yield more than compensates you for that risk. The idea that the market always gets it right is about as ludicrous an idea as a person can have.
They're yielding 3x the average. Withe the expanded capacity coming online now they could be pushing 4x the average. I can think of no good reason, variable or not, that keeps this from almost doubling. And, with the Keystone pipeline years off if ever, they will continue to generate a huge spread for a long, long time.