ENBL

Understanding the Phenomenon of “Price Risk” in High Yield

by

  Image Source: Julien Carnot We want you to learn about a unique risk innate to the high yield space like the back of your hand. We’ll explain the “information contained in prices” and talk about what you should be on the lookout for, the “avalanche effect.” Order the High Yield Dividend Newsletter here. — By Brian Nelson, CFA — I received a question from a dear member of ours, and I think it may be helpful that I share the response. The question had to do with why we may be ultra-cautious on high-yielding stocks that are facing considerable price declines. The risk described below makes the high yield space uniquely different than other equity strategies, in our view, … Read more

MLP Speak: A Critique of Distributable Cash Flow

by

–> Handout 1: Pitfalls of Distribution Yield Analysis (pdf) –> Handout 2: Linking P/DCF to Enterprise Free Cash Flow Valuation (pdf) Let’s talk about a controversial metric that is used in master limited partnership (MLP) reporting. Just how useful is it, and should it be allowed? By Brian Nelson, CFA It’s been a few years since the fallout in the prices of most master limited partnerships (AMLP), but to me, it still feels like yesterday. We continue to have many concerns about the longevity of the business models of MLPs, and we maintain our view that the operating structure will be challenged over the long haul. New equity and debt funding (issuance) continues to, in part, fuel the distributions of most MLPs, … Read more

Taxes and the Distressed MLP Investor

by

Image show above: Performance of the Alerian MLP ETF. “Perhaps the worst thing about MLPs is that investors can spend more time doing and thinking about tax-related items than actually evaluating the businesses of the underlying entities. This could result in poor investment decisions.” – Brian Nelson, CFA By Brian Nelson, CFA What a sensitive topic for many… Our team presented at the Chicago chapter of the American Association of Individual Investors (AAII) last weekend. It is always an honor and a privilege to have the opportunity to present to such wonderful people! They ask so many great questions. (By the way, I’m working on my schedule for 2017, so if you’d like our team to speak on a topic … Read more

Dividend Increases for the Week Ending July 24

by

Below we provide a list of firms that raised their dividends during the week ending July 24. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week BancorpSouth (BXS): now $0.10 per share quarterly dividend, was $0.075. Bar Harbor Bankshares (BHB): now $0.255 per share quarterly dividend, was $0.25. Baylake Corp (BYLK): now $0.09 per share quarterly dividend, was $0.08. BBCN Bancorp (BBCN): now $0.11 per share quarterly dividend, was $0.10. B&G Foods (BGS): now $0.35 per share quarterly dividend, was $0.34. Chemical Financial (CHFC): now $0.26 per share quarterly dividend, was $0.24. … Read more

Dividend Increases/Decreases for the Week Ending January 30

by

Let’s take a look at dividend increases/decreases for the week ending January 30.

Dividend Increases/Decreases for the Week November 13

by

Below we provide a list of firms that raised their dividends during the week ending November 13. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Absolute Software (ABST): now CAD 0.08 per share quarterly dividend. Air Lease (AL): now $0.16 per share quarterly dividend, was $0.15. Assurant (AIZ): now $0.66 per share quarterly dividend, was $0.63. Atmos Energy (ATO): now $0.625 per share quarterly dividend, was $0.575. Automatic Data Processing (ADP): now $0.93 per share quarterly dividend, was $0.91. Bancroft Fund (BCV): now $2.25 per share year-end dividend, was $0.29. Barings … Read more

The Dividend Cushion Ratio: Unadjusted Is Less Subjective, Adjusted Is More Subjective

by

  Image Source: Mike Lawrence Question: I’m a subscriber. I’m looking at your Dividend Report for Enterprise Product Partners (EPD). It says your Valuentum Adjusted Dividend Cushion ratio for EPD is 1.8 (a ratio that includes future expected proceeds from capital raising endeavors in the coming years), but several lines below it says the Unadjusted Dividend Cushion ratio, which is your regular normal ratio (a ratio that does not include future expected proceeds from capital raising endeavors in the coming years), is 0.22. Please explain the difference between the two ratios, and what is considered a good ratio for the Unadjusted Dividend Cushion ratio, what is an excellent score, what is neutral and what is poor? Also, how much relative importance should … Read more

Dividend Increases/Decreases for the Week Ending October 23

by

Below we provide a list of firms that raised/lowered their dividends during the week ending October 23. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week ALPS U.S. Equity High Volatility Put Write Index ETF (HVPW): now $0.3226 per share monthly dividend, was $0.3199. ArcBest (ARCB): now $0.08 per share quarterly dividend, was $0.06. American Electric Power (AEP): now $0.56 per share quarterly dividend, was $0.53.  AptarGroup (ATR): now $0.30 per share quarterly dividend, was $0.28. Associated Banc-Corp (ASB): now $0.11 per share quarterly dividend, was $0.10. Bank of Marin Bancorp (BMRC): … Read more

Midstreams Going C-Corp, Should SEC Disallow the Measure Distributable Cash Flow?

by

Key Takeaways It’s important to differentiate the concept of enterprise free cash flow valuation and the idea of capital-market dependence. The uncertainty of the MLP business model remains, as it is clear operators are shunning the MLP business model preferring C-Corps instead. According to work from Global X Funds, now 40% of the energy infrastructure market cap consists of C-Corps, up considerably from just 15% at the end of 2014. Though many simplifications have come with implied distribution cuts, the primary reason for the rise in C-Corps across the midstream space has been the rationalizing of excess MLP valuations to enterprise free cash flow assessments. We encourage the SEC to consider disallowing the use of distributable cash flow, as it … Read more

Dividend Increases/Decreases for the Week Ending August 9

by

Below we provide a list of firms that raised their dividends during the week ending August 9. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week A&W Revenue Royalties Income Fund (AWRRF): now CAD 0.159 per share monthly dividend, was CAD 0.154. ALPS ETF Trust – Alerian Energy Infrastructure ETF (ENFR): now $0.3123 per share quarterly dividend, was $0.2875. Audio Codes (AUDC): now $0.12 per share semi-annual dividend, was $0.11. Badger Meter (BMI): now $0.17 per share quarterly dividend, was $0.15. Barret Business (BBSI): now $0.30 per share quarterly dividend, was $0.25. … Read more