This company needs to increase distributions at least 2x a year to keep up with the best MLP's. So why own this dog except for present yield with no growth. I can get 8 1/2% in a preferred stock with no downside vs ETP..
Indeed, ETP has been a "dog" in terms of distribution growth...however, the recent acquisition of Sun, which was really about gaining control of SXL, should help them plug the hole in distributable cash flow.
I think it will be another year efore we see meaningful distributin growth, but the Sun deal, the Southern Union deal and the growth projects should start kicking in soon.
Odd that investors are not yet paying up for the future growth and increased distributions to come.
If you discount the value of all the big deals they have closed and feel the 89cents is at risk you should exit.
If you want share price appreciation you better buy before they announce any increase in distribution, which will come at some point. This could be poised for a really big move. It is overdue in a sector where others have made big moves.
In the short term you get paid almost 9% to wait. I will continue to buy the dips.
Not sure I understand the logic here. ETP is already paying over 8.3%.
Maybe you would prefer PAA's 4.8% rate. Alternatively, KMP and MWE are currently paying 5.74%.
PAA, KMP and MWE would have to have an inordinate amount of unit distribution growth just to catch up to ETP. What this suggests, quite simply, is that ETP is a mis-priced asset relative to its peers and the share price should be much higher (or the other MLPs share prices much lower).
Seems you are unfamiliar with total return (yield plus price appreciation).
You get much better total return with fast growing MLPs which have lower current yield but good distribution growth than with laggards like ETP which have a higher current yield but no distribution growth.
ETP's return is essentially just the distribution (less than that when there is decline in unit price).
Fast growing MLPs may have total return of 15-20% per year.
Even the Alerian total return index has long term total return around 14%.
EPB lags that by a long way and is thus one of the dogs of the MLP index.