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Framing Current Midstream/MLP Yields With Stress Tests

Published Fri, 17 Jul 2020 08:00:24 -0400 on Seeking Alpha

Seeking AlphaCommodities  | Market OutlookFraming Current Midstream/MLP Yields With Stress TestsJul. 17, 2020 8:00 AM ET|| Includes: AM, AMJ, AMJL, AMLP, AMU, AMUB, AMZA, ATMP, BMLP, CBA, CEM, CEN, CTR, DSE, EMLP, EMO, ENB, ENFR, EPD, ET, FEI, FEN, FMO, FPL, GEL, GER, GMZ, ILPRX, IMLP, IPPLF, JMF, JMLP, KEYUF, KMF, KYE, KYN, MIE, MLPA, MLPB, MLPI, MLPO, MLPQ, MLPS, MLPX, MLPZ, NML, NTG, PAA, PAGP, PBA, SMM, SRF, SRV, TRP, TTP, TYG, WESby: AlerianAlerian Master limited partnerships, oil & gas, energy, natural resourcesAlerian Insights.cls-1{fill:#024999;}SummaryDespite the decrease in midstream yields in recent months, yields for both the Alerian MLP Infrastructure Index (AMZI) and the Alerian Midstream Energy Select Index (AMEI) are above their historical averages at 12.5% and 8.8%, respectively, as of July 10.
Given improved financial positioning entering the current downturn and with most needed dividend cuts likely completed, midstream income appears to be more durable today.
Even in a stress test, midstream maintains a considerable yield advantage over REITs and Utilities.

After several cuts in 1Q20 payouts, midstream dividends today seem much more durable. However, yields remain elevated relative to history given ongoing weakness in equity performance. As mentioned in Tuesday's note, we view dividend cuts as less likely for 2Q20. While still early, seven names have already announced that they are maintaining their payouts. Today's piece examines current midstream yields relative to the highs from March at the index and company level. Additionally, current yields and a stress test of those yields are compared to the payouts from other income-oriented sectors.
Yields remain elevated after pulling back from record highs in mid-March. One way of telling the story of midstream in 2020 so far is through yields, which have historically been an important consideration for income-focused investors looking at the space. On March 18, the yields of both the... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
FIDUCIARY/CLAYMORE MLP OPPORTUNITY FUND 8.91   0.0 0.00 0.00 14.36
TORTOISE MLP FUND 12.38   0.0 0.00 0.00 13.55
TORTOISE ENERGY INFRASTRUCTURE 20.77   0.0 0.00 2.62 12.48
NUVEEN ENERGY MLP TOTAL RETURN FUND 8.59   0.0 0.00 0.00 11.52
ENERGY INCOME AND GROWTH FUND 21.37   0.0 0.00 0.00 10.84
CUSHING MLP TOTAL RETURN FUND 10.20   18.6 0.55 0.00 10.84
FIRST TRUST MLP AND ENERGY INCOME FUND 11.38   36.7 0.31 0.00 10.50
CLEARBRIDGE ENERGY MLP OPPORTUNITY FUND 8.71   0.0 0.00 0.00 10.49
GENESIS ENERGY LP 21.10   0.0 -0.35 2.20 10.30
KAYNE ANDERSON ENERGY TOTAL RETURN FUND 9.89   0.0 0.00 0.00 10.17
WESTERN GAS PARTNERS 24.62   15.5 1.59 2.47 9.98
KAYNE ANDERSON MLP INVESTMENT 14.71   0.0 0.00 0.00 9.76
SALIENT MIDSTREAM & MLP FUND 7.87   0.0 0.00 0.00 8.60
KAYNE ANDERSON MIDSTREAM/ENERGY FUND 10.86   0.0 0.00 0.00 8.23
PLAINS ALL AM. PIPELINE 21.20   5.3 3.99 1.44 6.75
ENBRIDGE 34.70   19.7 1.76 2.21 6.38
ENTERPRISE PRODUCTS 28.68   12.4 2.31 1.76 6.13
PEMBINA PIPELINE 36.91   16.1 2.29 1.80 4.86
TRANSCANADA 49.89   14.6 3.42 2.25 3.14
KEYERA FACILITIES INCOME FUND 25.27   0.0 0.00 0.00 0.00
JPMORGAN ALERIAN MLP INDEX ETN  

FIDUCIARY/CLAYMORE MLP OPPORTUNITY FUND - FMO
FIDUCIARY/CLAYMORE MLP OPPORTUNITY FUND - FMO  


Older articles featuring Fiduciary/claymore Mlp Opportunity Fund (FMO):
High MLP/Midstream Yields But Ample Coverage, Payout Ratios
Examining Midstream C-Corp Dividends As Yields Rival Historical MLP Yields
2020 Vision: What's The Outlook For Midstream/MLP Dividends This Year?
Income Investing And The Changing Yield Curve
The Highest Yield Left In The Market
Closed-End Funds: 12 Funds In The 10%+ Yield Club At A Discount
Do Dividend-Paying Stocks Make Better Investments?
Closed-End Funds: 12 Funds In The 10%+ Yield Club At A Discount
You Were Warned: MLPs And 'I Bought It For The Dividend'
High Yield For Granny: The Savvy 'Widow & Orphans' Income Factory

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