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A 12% Yield, Strong Coverage, Analyst Upgrade This Week, 22% Below Book Value

Published Sat, 12 Aug 2017 10:04:00 -0400 on Seeking Alpha

We've been hanging in there with our holding of Arc Logistics Partners LP (ARCX), a midstream firm, we've covered in several past articles. Although ARCX has beaten its benchmark, the Alerian MLP ETF (AMLP), that's not much consolation, as it has consistently trailed the market:
ARCX offers storage alternatives to handle a wide array of products, including gasoline, distillates, aviation gas, asphalt, fuel oil, crude oil, ethanol, bio-diesel, methanol and crude tall oil, with many of its facilities managing multiple products and offering additional capacity to support changing customer priorities:
(Source: ARCX site)
Management greatly expanded the company's crude oil throughput, starting in Q3 '15:

The company has grown and diversified from having a much more balanced customer base, vs. 2008 when 99% of its base were marketers. Exxon Mobil, (XOM), is among the oil majors it deals with:

(Source: ARCX site)
Distributions: Management has held the distribution steady at $.44 since November 2015 - which is 13.55% above its targeted minimum distribution. At a price of $14.08, ARCX is yielding 12.50%.
Our High Dividend Stocks By Sector Tables track ARCX's current price and dividend yield (in the Basic Materials section).
ARCX issues a K-1 to common unit investors at tax time. Since this is a tax-deferred investment, you'll get more tax advantages from it by not holding it in an IRA. There also can be tax... Read more