2 Scorching Hot High-Yield Dividend Stocks -- Are They Buys?
Coal miner Alliance Resource Partners, L.P. (NASDAQ: ARLP) offers an impressive 10.6% distribution yield. Midstream energy player Buckeye Partners, L.P. (NYSE: BPL) provides unitholders with a hot 8.4% yield. Those are fat yields, but are these two partnerships buys at current prices? Here's what you need to know.
There's no question that thermal coal miners are under intense pressure today from low prices. In fact, Alliance noted this fact in its second quarter earnings release, explaining that, "...coal sales revenues declined due to the anticipated reduction in coal sales prices." However, coal volumes were up, and the company was able to cut costs, leading to flat year over year net income of $0.82 per unit. The partnership remains on track to meet management's full-year guidance.
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Source: Fool.com
Alliance Resource Partners Stock
Alliance Resource Partners is currently one of the favorites of our community with 6 Buy predictions and no Sell predictions.
Based on the current price of 3.96 € the target price of 25 € shows a potential of 531.31% for Alliance Resource Partners which would more than double the current price.
