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Endangered Dividends

Another Midstream Meltdown

By Roger S. Conrad on Feb. 12, 2017
Excessive leverage, diminished growth prospects and shrinking cash flow suggest that a distribution cut is inevitable for this midstream master limited partnership.

Mind the Borrowing Costs

By Roger S. Conrad on Jan. 10, 2017
Rising interest rates will exert additional strain on all the names in our Endangered Dividends List. And the higher rates go, the greater the risk that these stragglers will seek to conserve cash by reducing their payouts.

More Midstream Cuts

By Roger S. Conrad on Dec. 11, 2016
Sunoco Logistics Partners LP's proposed acquisition of Energy Transfer Partners LP will result in a stealth distribution cut of 27 percent for the latter's unitholders. Meanwhile, Ferrellgas Partners LP slashed its payout by 81 percent. Readers who follow our Endangered Dividends List would have avoided this pain.

Dividend Safety: Interest Rates Matter

By Roger S. Conrad on Nov. 16, 2016
Thanks to 15 years of cutting operating risk and debt, not even a much higher spike in borrowing costs would threaten dividends of best-in-class utilities. With ample cash flow and minimum near-term borrowing needs, they can hold off until pension funds and other institutional buyers must return to the table. Unfortunately for the weaker credits covered in our Utility Report Card, rising interest rates could ratchet up the pressure on their balance sheets and force them to redeploy cash that they currently pay out as dividends.  

Boom! Goes the Dividend

By Roger S. Conrad on Oct. 11, 2016
We weren't surprised when Ferrellgas Partners LP (NYSE: FGP) announced that the master limited partnership may need to cut its distribution by 50 percent.

A New Threat

By Roger S. Conrad on Sep. 12, 2016
Soft commodity prices, declining oil and gas production in some regions, counterparty risk and elevated costs of capital have threatened midstream master limited partnerships’ distributions over the past two years.

Narrow Escapes and Dividend Cuts

By Roger S. Conrad on Aug. 13, 2016
Four companies made strategic moves or posted second-quarter results that earned them an escape from the Endangered Dividends List. Within our coverage universe, three energy stocks we highlighted as being at risk of a dividend cut lived up to expectations.

Dividend Shrink Ray Targets Small-Cap Telecoms

By Roger S. Conrad on Jul. 10, 2016
Size isn’t everything in the telecom sector, but it is important.  

Rally in Energy Prices Brings Relief

By Roger S. Conrad on Jun. 12, 2016
Sometimes a rising tide lifts all boats. The sharp recovery in oil and gas prices since mid-February has convinced all too many investors that the risk of further distribution cuts among energy-focused master limited partnerships (MLP) has declined. The immediate response to the indiscriminate selling of late 2015 and early 2016 has been a wave of indiscriminate buying. But selectivity will be critical going forward.

No Cuts, But Plenty of Risks

By Roger S. Conrad on May. 8, 2016
First-quarter earnings season has included a raft of weak results and guidance reductions from the more than 200 essential-service companies in our Utility Report Card.  

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ABOUT ROGER CONRAD

Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger b