Is This 18% Yield a Dividend Trap or a Screaming Buy?
Units of master limited partnership Western Midstream Partners (NYSE: WES) have plunged nearly 60% over the past year. Several factors have weighed on the midstream company, including the continued turbulence in the oil and gas market and its relationship with Occidental Petroleum (NYSE: OXY). That slump in the MLP's unit price has pushed the yield on its distribution up to an eye-popping 18%.
Yields that high often become a dividend trap as they lure investors into what turns out to be an unsustainable payout. Here's a look at whether that might be the case for Western Midstream.
Image source: Getty Images.
Source Fool.com
