Thursday, February 6, 2014

Score a Potential 70% Total Return With Alon USA Partners LP (NYSE: ALDW)

Dividend hungry investors are accustomed to the occasional hiccup. If business trends slump, then the board may be forced to trim the payout a bit. But when a company tells investors that the dividend has been cut to zero, investors vote with their feet.
That's what happened back in November, when Alon USA Partners LP (NYSE: ALDW), the master-limited partnership (MLP) of Alon USA Energy (NYSE: ALJ), announced an unexpected quarterly loss and a suspension of its quarterly dividend.
ALDW Stock Chart
Yet a deeper look into this dividend debacle is warranted. Despite the suspended dividend in Q4, ALDW paid out $2.76 per unit in 2013. And as this company regains its footing, shares have robust upside, and the future yield is likely to handily exceed 10% based on the current lagging stock price.  (more)

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