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Should Income Investors Buy Into Alliance Resource Partner's 7.8% Yield?

Published Wed, 11 Jan 2017 01:55:34 -0500 on Seeking Alpha

One of the industries most eager to bid farewell to 2016 was coal. Demand for coal fell off a cliff, from a variety of sources including intensifying regulation, as well as a broader shift away from coal toward natural gas.
Even well-run, highly profitable coal companies like Alliance Resource Partners (Nasdaq: ARLP) suffered. Despite a unique competitive advantage and a long track record of success, it slashed its distribution by 35% last year.
Prior to the distribution cut, Alliance Resource had an enviable dividend track record. Coming into 2016, the company had raised its distribution for 29 consecutive quarters. At the time, it was a Dividend Achiever. (Note: The stock is still technically on the Dividend Achievers List, but will soon be removed.)
You can see the entire list of You can see the entire list of all 272 Dividend Achievers here.
Now that Alliance Resource has reset its distribution at a lower, but more sustainable rate, the question is whether investors should give coal another chance.
This article will discuss the current environment for coal, and Alliance Resource's future prospects.
Business Overview
Alliance Resource isn't your average MLP. It is a coal mining company, and was the first coal MLP.
The company operates nine mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. Its production facilities are located in two... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ALLIANCE RESOURCE PARTNERS L.P. 18.00   6.0 2.99 2.04 11.33

ALLIANCE RESOURCE PARTNERS L.P. - ARLP
ALLIANCE RESOURCE PARTNERS L.P. - ARLP  


Older articles featuring Alliance Resource Partners L.p. (ARLP):
Alliance Resource Partners Is Attractively Priced With A Safe 10% Yield - At Least In The Short Term
My K.I.S.S. Dividend Portfolio: 4th Quarter 2017 Update
ARLP Stock: A Surprisingly Safe Dividend Yield of 10.5%
Coal & Chemicals Pace 'Safer' Dividend Basic Materials Gains In December
Wall Street's 36 Favorite 'Safer' Dividend Stocks For 2018
40 Of 90 'Safer'Dividend 10%+Yield Stocks Id'd For December Stalking
Coal Boom Builds Up 'Safer' Dividend Basic Materials Gains In November
33 Of 90 'Safer' DiviDog 10%+Yield Performance Predicted For November
CNX Coal Stays Atop 'Safer' Dividend Basic Materials Into October
My K.I.S.S. Dividend Portfolio: 3rd Quarter 2017 Update

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