Star gas partners SGU Dividend play ?

[Lakewood90712]

Small cap 340 mil. shows a p/e of 14 and div of 5.9 % dist.of heating oil and propane to end users. Yea or pass it by ?

 

[jimnjana]

Small cap 340 mil. shows a p/e of 14 and div of 5.9 % dist.of heating oil and propane to end users. Yea or pass it by ?

I'd pass and buy XOM or COP at these levels. Both of SGU businesses are in decline.

 

[target2019]

More negative than positive, but at $5.99, I'll take a few shares!

http://finance.yahoo.com/news/star-gas-partners-l-p-210100498.html

I can't interpret the financial data for you, but does look like a lot of flags are going up. After the heating season is over, it might be a buck less per share?

 

[Ed_The_Gypsy]

OK, it is a distributor, so their income does not depend on the price of hydrocarbons. Think 'pipeline'.

It is also an MLP with all their K-1 headaches. Taxes have to be paid on that dividend, even in an IRA. I like simpler equities.

 

[haloFIRE]

Star is a bit to small cap for me.


If looking for high yield and a low PE, you could consider WPZ or APU. Both pay a higher dividend and have a great history of raising their dividends. I own both; WPZ less than a month and APU about 18 months. Planning long on both.


Could also look at FGP. Many do not like it for the high PE and various other reasons. I've held it for over 10 years...the dividends have more than covered my initial purchase price