I am a 72 year old retiree. My wife and I own 8,000 shares of ARLP. We buy MLP's primarily for the dividend and hold. Our average purchase price for ARLP is $ 15.60. We bought in October of 2001. Our total cost was about $ 125K. Our dividends now total over $ 225K and the stock is worth almost $ 475K. It has been a great stock for us.
Secondly, I am always surprized that more retirees don't do exactly what you have done as ARLP spent most of the year around $40 to $45. CDs are paying less then 2% and, yet, you go to any bank and you see old people lining up and buying them. ARLP gave you an 8% yield and the potential for capital gain. Seemed a no-brainer to me.
I look at the earnings growth which should be somewhere near $7/share this year and, the fact, that it is based upon new mines. So, these earnings are not going to be one-time flukes. So, I see the payout going north of $5/share. Given CDs payout of less then 2 percent, I think this stock is going to go to $70 over the next year. Hey, I could be wrong, but I own 6500 shares and will continue to hold on. Man, wish I had 8000 shares like you, but I can't concentrate too much on one stock.
longterm, I like oil, too. I own LINE, CVX, and TOT. I also own SCCO. I think these commodity plays are gooing to be good over the next few years.