Is MMP overpriced?
I never thought through fully the implications of my selling criteria when I purchased an MLP. Though this is the best of problems to have I am starting to wonder whether I should leave my same criteria of selling a stock when the dividend falls below 1.5% when I hold an MLP, as a mechanical means of getting out of overvalued stocks and acting as a rebalancing act to increase dividends by merely selecting higher yielding stocks. Perhaps 2.5 - 3.0 percent would be the proper level?
MMP, which should increase the dividend by 20% for the next two years. Right now the dividend yield is 3.1% which is very low for a MLP. By December 2015 I expect dividend to be $3.37 per year which is 4.5% on the present stock price and would be an acceptable yield for a growing dividend MLP. I could double my dividend income by switching to several other MLP's in the same general line of business, by just switching at the present time.
Has anyone else sold this stock because they thought overvalued even though their business model is working perfectly?