SXL is a core holding in my portfolio. Look at the chart. In May 2007 the stock was around $21. In October 2009 it had dropped to around $10. A loss in capital of over 100%. Yet during this period SXL increased its dividend every single quarter and continues to do so! Also it fully recovered from that low and then some. As long as oil/gas need to be transported here in the US, a most likely scenario, buy this stock for the dividend and keep it for the long term.
It ran up a nice +30% in 2011 (incl dist) so "going down" down is relative. If I didn't own it now, I'd be looking elsewhere, so call it a hold in my book. Near $40 is overbought. Happy to take distributions and sell calls as it is almost a long term holding for me.
I agreee with your assessment 100%. My average buy price since I bought in (2008) equals $21.66. I just bought more at $37.50. I believe that eventually it will go up again. I'm in for the long haul and happy with the quartery distributions.