I agree on this strategy. It has the virtue of gradual and regular accumulation. but the key is the entry point. If you buy in at 55, you take a large risk on the downside. In any market fall, this is a double beta stock. Or was, for example, in the last decline. I recall the day it was about 12 or 14/sh. I decided not to look till it was back over 20. That took a while, but meantime the reinvested shares accululated rapidly. Now, the situation is different.
Short term no. EVEP has paid out about 75% of operating C/F for past 4 qtrs which is pretty high so not alot of room without addl earnings. This price action is likely being driven by increases in oil costs as well as Obama's continued postion of reducing reliance on foreign producers and alternative energy. EVEP wins both ways with land based drilling as well as their natural gas/shale reserves.
Who here really believes we will just smoothly shift into domestic drilling and big profits for NG? EVEP's future profit growth is 2 yrs from now. in the meantime, get ready for the market bubble crash courtesy of the FED. all the weak Natural Gas players will be flushed again and hopefully for the final time.
As the saying goes, change only occurs when there is a necessity, the necessity only exists when there is a crisis. Natural gas is waiting for the crisis to get full blown (almost there, but not quite).
I'm just saying this 5.6% yield is not worth the hold like it used to be. I already miss the 8% yields. The street is selling MLPs like never before, be suspicious and preserve your capital.