Is 10%-Yielding Sunoco LP a Buy?
Sunoco LP's (NYSE: SUN) stock is yielding around 10%. That's an enticing figure for income investors. However, there are a lot of moving parts at this gasoline-focused limited partnership today. Before you buy high-yielding Sunoco LP, you need to understand just how different a partnership it will be in a few months.
Today Sunoco's business is split between two main operations. On the wholesale side, it delivers gasoline to nearly 8,000 gas stations across 30 or so states. This business is largely built on long-term supply agreements, though it does make spot sales as well. The other side of the partnership owns and operates gas stations and their associated convenience stores. Wholesale made up around 28% of 2016 profits, retail gas sales 28%, convenience store sales 32%, and "other" the rest.
Image source: Getty Images
Source: Fool.com
Enterprise Products Partners L.p. Stock
Enterprise Products Partners L.p. is currently one of the favorites of our community with 19 Buy predictions and no Sell predictions.
As a result the target price of 30 € shows a very positive potential of 99.68% compared to the current price of 15.02 € for Enterprise Products Partners L.p..
