2 Beaten-up Energy Stocks: Are They Dividend Bargains?
When investors think about energy stocks, they often have oil drillers in mind. But by limiting their scope, they're missing out on a lot of options. Case in point: midstream companies like Buckeye Partners, L.P. (NYSE: BPL) and Plains All American Pipeline, L.P. (NYSE: PAA), which help move oil and gas from where it's drilled to where it's used. Right now both partnerships have fat yields because their unit prices have fallen more than 20% over the past year. But that doesn't mean both are bargains today.
Here's what you need to know about these two beaten-up midstream energy partnerships.
Buckeye Partners' units are falling because the distribution coverage has been weak lately. In fact, in the second quarter of 2017, distribution coverage fell to just 0.95. That goes along with net income per unit falling to $0.80 in the quarter from $1.07 in the same period of 2016. The company is also dealing with the loss of a key customer at one of its facilities. These are not comforting facts, but they may be providing investors with a chance to lock in a hefty 8.7% yield.
Source: Fool.com
Plains All American Pipeline LP Stock
Our community is currently high on Plains All American Pipeline LP with 10 Buy predictions and 3 Sell predictions.
Based on the current price of 5.82 € the target price of 16 € shows a potential of 174.96% for Plains All American Pipeline LP which would more than double the current price.
