In a cost of equity capital analysis by CaplQ on 3/5 ETP had the second highest cost of capital... only NKA was higher. With this issuance there is no doubt ETP now has the highest.
Having to float equity at an 8.2% yield is destructive over the long term.
An analysis of ETP's new acquisitions to date shows that the increase in dcf correlates to the increase in share count. Translation.... little to no accretive value near term.... REAL GROWTH will be required.
When most better managed MLPs offer immediate accretion on deals you can see why ETP is selling at an 8.20% yield.
While you will get superior yield you will get inferior growth prospects and therefore a much lower total market return than the better run MLPs. This dog has too many fleas.
Four years without an increase in distribution..... Why bother owning ETP when there are so many better MLPs that can grow your distribution yield based on your cost of shares in a few years but also provide significant capital growth too?
tHE etp LEADER KEEPS COMING ON cnbc IMPLYING THAT NEXT YEAR THE DISTRIBUTINO WILL RISE. i DONT KNOW WHAT WILL HAPPEN BUT AM CONSIDERING SHIFTING FROM MANY mlp'S TO A HANDFUL OF new ENERGY TRUSTS which have no capital to raise for this constant dilution. sorry for the capital letters. I did not realize the cap lock was on until I looked at my screen and did not want to retype the message.