I don't think this is 'attractive' until the yield hits 6%
Yes EPD'd distribution rate did reach 11% in October 2008. I know, because I couldn't believe it and bought heavily. The pattern has been that anytime EPD declines to a level where the yield reaches 5%, the price within a day or two dramatically adjusts upward.
EPD has the whole package. The yield is the icing on the cake. Your view of yield reminds me of someone who can't see the forest for the trees.The beauty of MLP's is not only the yield, but the growth in the unit price. EPD has compounded returns of 11% when you include both components.
I believe this will continue for a number of years given the extent of their lucrative projects about to come on line and the prospects for natural gas and its' derivatives in the near future.
I have held units of EPD since 2001 and I don`t remember 11% but i`ll take your word for it.Most of the Units I bought long ago below $30.00 so I haven`t really paid that close attention to it. I add a few units on occasion but for the most part I`ve left it alone. The only time I was really concerned about EPD was when it dipped after Dan Duncan Passed.His successors seemed to pick up the ball and run in the same direction as Dan had been taking EPD. As far as the Forest and the Trees and Understanding, You`re correct, I understand nothing about MLPs but I do understand that I am playing with 100% of the houses money.Anyway I still don`t believe the sky is falling and hopefully we`ll continue to prosper with EPD.
I think at the very worst days in 2009 it may have touched 11% for a day or two, it was 10 for a few weeks, I loaded up there at 18.50, that money is now yielding over 15%, not to mention all the units i have gotten producing more units and so on and so on since then. This will not be hitting 44 again unless it splits 2-1 at some point. The U.S. will be the number one energy producer in the world inside of 10 years, you think pipelines might do okay in that environment? I think so.