Yes this is dilutive to current shareholders but given that MLP's are required to payout earnings the only way they can grow is by selling debt or equity. Given the current credit market environment the latter is preferable. However it looks like the majority of this capital raise is going to be used to reduce ETP's revolver and a smaller portion will be used to build a new pipeline. Does anybody have any other input or thoughts on this development?
Yahoo dividend numbers and dates are often incorrect. If one is really concerned they need to go to the company webpage. You can get accurate information there.
Just wondering why one would want to capture the distribution (MLPs do not pay dividents) from an MLP since it reduces the basis and ultimately will come back as ordinary income? Yes it is mostly sheltered, but not eligible for a 15% or lower rate. Just a thought.
no you hit the nail on the head. Well managed and growing, this isnt a sinking ship. Dividend is safe, this is a good dividend price,and we are all rewarded when we buy on dips. While some may say its dilutive I disagree I say it only dilutive if there is no growth. the fact that it could be used for a new pipeline,increases their asstets which offsets equity dilution.