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MarkWest Energy Partners, L.P. Message Board

  • yamahacruser yamahacruser May 7, 2010 12:04 PM Flag

    Bought for Div. But!!

    t is tough holding on when you see your money go down the toilet. I am hoping to retire early so I need income, but watching this makes me think about selling. It is not like the div. is written in stone. If it was the who would give a fugg. But it would be a disaster to watch your investments go down and down then the dive gets cut.
    mean while I am hanging in.

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    • My observation is that the price swing is greater than the dividend. I sell just before the ex-div date and buy back after the ex-div date at a much lower pps. JMHO

      • 1 Reply to jrussell823
      • The reaction to MWE is always overblown. Are people going to stop heating their homes? Are businesses going to suddenly cease using NG and NGLs? Is everyone going to stop driving and end the need for isobutane and natural gasoline? Of course not!

        What is important to remember is MLPs were designed as buy and hold securities. Trading can cause huge difficulties, mostly because unitholders are only added and dropped on the first of each month. Thus buying on the 28th and selling 4 days later gives you 1 month worth of allocations as a partner. This could be either good or bad.


    • It was trending down anyone could see it. I just refused to go with the trend. Just like now it will continue to be choppy for at least a month most likely a lot longer and it will trend down during the ups and downs This is my opinion then and now. I just can't bring myself to get out I need the dividends/ distributions (whatever you choice to call it.) I know all about return on capital!! As I said I hope they don't cut them.

      MLPS distribute their profits to the unit holders leaves less capital to work if the economy goes down really down and the gas situation is negetivly impacted then the money returned might be in trouble. They may not be able to sell units since it could be hard times.
      Just an opinion mo matter how stupid you think it is.

    • I saw it coming and could not move out of the way of the train. I just hope the don't cut the dividend( I know it is not a div) a rose by any other name is still a rose.
      I own about six mlps wish I got out like I wanted to three weeks ago. Now I am down so I will ride the train as I said hope it distribution continues and does not get cut or suspended not just in this mlp but all mlps

      • 1 Reply to yamahacruser
      • come on yama--

        >>>I saw it coming and could not move out of the way of the train. I just hope the don't cut the dividend( I know it is not a div) a rose by any other name is still a rose.<<<

        You saw it coming "then" or NOW you see "what came then?"

        A rose is not always a rose- A dividend is a dividend---and a distribution is a distribution

        IMHO MWE's distribution will be paid on a regular basis this year until many growth projects kick in in 2011 when the distribution will be increased.
        That of course is assuming the world will not end between now and the. I am not in a position to know that infoprmation as it is restricted to p;eople in my pay grade.


    • MWE is a once and future growth G&P MLP. If one wants a distribution that is more 'written in stone"-like, then one should be purchasing units in the large capped mid-streams like BWP, EPD, MMP, PAA and SXL. [I own units in three of those five]. Look and the distribution history for those. The history is fairly long - no distribution cuts - and until last year good distribution growth.

      But . . . the only reason to fear holding MWE is if your allocation to MWE is too high. Due to the strong positives in MWE's geographical footprint, there is a presumption of forward distribution growth already priced into MWE. And those presumptions osculate.

      While there are a lot of MLP investors that have sector weightings for MLPs that are very high, a good starting point [for newbies to MLPs] is 10%. Even if one is buying in 2% chunks per equity, you can still be a fair amount of diversification [four more MLPs other than MWE].