Is Sunoco Stock a Buy?
There must be something wrong with Sunoco's (NYSE: SUN) business.
Its dividend is offering investors a fat 8.7% yield at a time when the S&P 500 Index is near all-time highs and yielding just 1.3% or so. Surely, a yield that high suggests the company is either in trouble or headed that way, right? Not really. Here's a look at why income-focused investors might want to consider Sunoco and its huge distribution yield today...and why they might not.
Sunoco is a master limited partnership (MLP) that is primarily focused on the distribution of gasoline. That said, its business falls into two categories. First, it actually trucks fuel to gas stations in 33 states. Second, it has been expanding into the pipeline and refined products terminals business, which is basically the step before you truck the gas to the station. They are complementary assets and allow Sunoco to grow its business in two different ways.
Source Fool.com
