ETP's Board of Directors has approved a quarterly distribution of $0.89375 per unit ($3.575 annualized) on ETP common units for the quarter ended December 31, 2012. The cash distribution will be paid on
February 14, 2013 to unitholders of record as of the close of business on February 7, 2013.
Where's the beef?
Why people are complaining is beyond me. What people don't get is that the 8% dividend on top of the 5% discount from reinvested dividend from DRIP gives you a total of a whopping 13% annual return even if the stock goes nowhere. Not bad to just sit and wait if you ask me. On top of that, ETP is beginning to change its business model to reflect that of Kinder Morgan, one of the best MLPs out there that has doubled it's share price in the last 4 years. I'm going to sit and wait till this transition happens and buy more on dips.
Not tell you what to do - but we should know by May of this year...by then most companies would have or have announced a dividend or distribution increase. I think LINE announces their increase in March - RAI announces their dividend increase in May.
THe .89 is the beef. The distribution is exactly where I expected. Q4 margins were terrible and ETP needs to have DCF coverage of 1.1X in order to raise. MWE was raising by .03 per quarter and now is just barely covering a .01 increase. Sure hope that some sell and move on because they will then be able to raise. Still too many moving parts. "holdco" for example and folding RGP into ETP. Also selling APU units.
Bottom line is we all know absolutely NOTHING until we get the quarterly report. That along with the conference call will tell us what is happening for 2013. I'm heading off for a holiday and will be off the board for a few weeks. Good things have always happened while gone. IMO having a coverage ratio of 1.05-1.1X is more important than a small distribution increase and lesser coverage.
And I do understand many will disagree.
what hasn't been discussed on this topic is:
1. 24% of the stock is owned by insiders.
2. while they are paying out 70% in dividends, what are they doing with the other 30% (paying down debt, buying back shares, or otherwise increasing the value of the stock?).
With insiders owning so much of the stock, one can be assured they will act in the best interest of the stockholders.