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2 Case Studies Highlight Why Free Cash Flow Is King When It Comes To Dividend Coverage
Published Tue, 04 Feb 2020 12:24:58 -0500 on Seeking Alpha
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}(window));Seeking AlphaDividend Strategy2 Case Studies Highlight Why Free Cash Flow Is King When It Comes To Dividend CoverageFeb. 4, 2020 12:24 PM ET|| Includes: ARLP, MMLPby: ValuentumValuentum Newsletter provider, valuentum, dividend growth investing, long/short equityValuentum Securities.cls-1{fill:#024999;}SummaryAnalyzing two probable value traps, Alliance Resource Partners L.P. and Martin Midstream Partners L.P.
Covering why free cash flows are so much more important and relevant to financial analysis than industry-specific metrics like "distributable cash flow".
Digging into the financials of these two master limited partnerships and covering the reasoning behind their recent payout cuts.
Image Source: The author of this article, Callum Turcan. Free cash flow is a much better metric than a distributable cash flow. Free cash flow is often less, in number than distributable cash flow, but the image above states that we... Read more
| Stock name | Last trade | P/E | Earnings/Share | Dividend/Share | Dividend yield | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MARTIN MIDSTREAM PARTNERS | 4.19 | 0.0 | 0.00 | 1.00 | 24.39 | |||||||
| ALLIANCE RESOURCE PARTNERS L.P. | 15.86 | 4.5 | 3.49 | 2.16 | 12.95 |