This New High-Dividend Stock Yields 7%-Plus And Is Beating The Market In 2014

May 24:

Summary

  • A lack of pipelines is forcing increased railcar loadings of crude oil in the US.
  • Marlin Midstream's new crude oil logistics biz plays into this strength.
  • Marlin has committed to a minimum $.35 quarterly distribution, a 7%-plus yield.
In our last article, we profiled a stock which went public in 2013, and had already committed to a high-yielding minimum quarterly distribution. This week's stock is in a different industry, but is in much the same position, having already stated in its partnership agreement that it will pay a minimum quarterly distribution of $.35/unit. In fact, it increased its most recent distribution to $.355.
With its 7%-plus yield, we've added Marlin Midstream Partners LP (FISH) to our High Dividend Stocks By Sector Tables (in the energy section).
Profile: Headquartered in Houston, Texas, Marlin Midstream Partners, LP is afee-based, growth oriented Delaware limited partnership formed to develop, own, operate and acquire midstream energy assets. Marlin currently operates in 2 segments: Natural gas gathering, transportation, treating and processing services, and NGL transportation services; and crude oil transloading services.
FISH went public in July 2013, and has management whose interests are aligned with unitholders: CEO Keith Maxwell wholly owns NuDevco, which owns and controls FISH's general partner, Marlin Midstream GP, LLC. Maxwell started a company named Spark Energy in 1999, and grew it into a multi-state electricity and natural gas supplier, which operated in 17 states. Associated Energy Services - AES, formerly a division of Spark, now is working together with NuDevco Midstream to develop, acquire and provide midstream services to crude oil, natural gas and NGL producers. FISH's management anticipates that these assets will ultimately be dropped down to FISH, which has a right of first offer on any midstream assets they develop.
Source: http://seekingalpha.com/article/2235803-this-new-high-dividend-stock-yields-7-percent-plus-and-is-beating-the-market-in-2014?

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