Saturday, November 23, 2013

The Energy Sector's Most Volatile Niche Now Offers Stunning Yields

Dividend investors crave predictability. Once they lock onto payment streams, they don't want to hear about any interruptions. And if a company dares to withhold a quarterly dividend payout, then many investors simply head to the exits.
I discussed this phenomenon recently with regard to Carl Icahn and his big stake in CVR Refining (NYSE: CVRR).
As I noted earlier this month, CVR had a big hiccup with its third-quarter dividend, but it appears positioned to pay out $3 or $4 per unit in dividends next year. Shares trading around $22 don't begin to reflect that potential income.
Amazingly, a virtually identical scenario has just played out with another oil refiner. And the setup is every bit as compelling.  (more)

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