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Yield 10%-Plus From Recession-Resilient Preferred Stock: Global Partners

Published Sat, 04 Jul 2020 09:45:00 -0400 on Seeking Alpha

Seeking AlphaDividend IdeasYield 10%-Plus From Recession-Resilient Preferred Stock: Global PartnersJul. 4, 2020 9:45 AM ET|| About: Global Partners LP (GLP), GLP.PA, Includes: AMLP, BP, BPAQF, CAPL, PBF, RDS-A, RDS-B, RYDAF, RYDBF, SRLP, SUN, VLOby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryGLP has seen strong fuel demand decline during COVID-19 shutdowns.
Only three companies operate in its sub-sector, and GLP is the most diverse.
The common distribution cut was unnecessary but makes the preferred shares even more solid.
GLP preferred shares are a strong buy with a yield of +10%.
GLP issues K-1 tax forms.

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We started High Dividend Opportunities to identify excellent high-yielding securities to invest in, especially for income investors and retirees. Our team works diligently to locate, research and report on them.
Previously we had reported on various companies that focus on fuel distribution (gas stations and other fuels). This sub-sector of the MLP space is predominately comprised of three companies: Sunoco LP (SUN) which yields 14%, Global Partners LP (GLP) which yields 16% and CrossAmerica Partners (CAPL), which yields 15%.
Today we will revisit our favorite fuel and gasoline distributor, Global Partners, and conclude with a recommendation on their preferred stock. GLP is a master limited partnership, or MLP, that has largely been flying under the radar. It was originally focused on heating oil, but management has carefully transitioned GLP into primarily a gasoline distribution-focused company.
Fuel delivery companies focus on buying fuel from refineries and delivering it to gas stations. One of the big advantages of some of these companies is the fact that they also own convenience stores in most of their gas stations, making the business model even more recession resilient.
They work with long-term contracts. SUN... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CROSSAMERICA PARTNERS LP 17.25   31.4 0.55 2.10 12.24
SUNOCO LP 31.35   20.8 1.51 3.30 10.51
BP 37.67   14.3 2.64 2.44 6.45
ROYAL DUTCH SHELL A 68.62   27.1 2.59 3.76 5.35
ROYAL DUTCH SHELL B 70.13   0.0 0.00 3.76 5.23
VALERO ENERGY 83.70   13.8 6.06 3.60 4.41


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