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An Energy Patch Value with a 9% Yield

I have a new recommendation to share with you. How about the opportunity to buy a stock in the energy patch that is selling for only 6.9 times earnings this year, has raised its dividend every quarter since February 2015 and now yields 9%? asks Mark Skousen, editor of Five Star Trader.

That’s the case of CNX Midstream Partners (CNXM), the Canonsburg, Pennsylvania-based natural gas pipeline company, which is based south of Pittsburgh.

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Its business is booming. Revenues are up 15% to $257 million and earnings are ahead 50% to $121 million. It has a profit margin of 47% and a return on equity (ROE) of 24%.

It is definitely under the radar screen of most Wall Street analysts. Its price/earnings to growth (PEG) ratio is 0.49 (anything less than 1 is considered excellent).

And CNX Midstream has an aggressive, young CEO, Chad Griffith, who recently took the helm and is rapidly expanding its pipeline network. 

The company was formed after CNX acquired Con Midstream Partners from Noble Energy last January. Since then, the combined company has been acquiring systems and taking other steps to grow its business.

See also: This REIT Prints Money in Any Rate Environment

The energy firm paid a quarterly dividend of 21.48 cents per unit in February 2015 and has been increasing it ever since. The dividend now is at 36 cents per unit.

CNX Midstream has beaten Street forecasts four quarters in a row and probably will do so again when it reports in May. Not surprisingly, five officers and directors recently have been buying their company’s stock.Let’s join them and buy this energy play in advance.

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