There’s no faster way to grow a business than by making acquisitions. The trick few master is finding deals with upside from simply following core competencies, and made at the right price. But neither has been a problem for Conservative Holding Brookfield Renewable Energy Partners (TSX: BEP-U, NYSE: BEP).
When it comes to MLP distribution cuts, lightening often has struck several times in the same place. So it’s no wonder investors have been skeptical about Suburban Propane Partners’ (NYSE SPH) 10 percent plus distribution, since management took the hard step of a -32.4 percent reduction in late 2017.
It’s been decades since utility stocks started a year this fast. But while the Dow Jones Utility Average’s 10 percent plus first quarter return is certainly preferable to what we saw last year, we suspect that staying cool after 2019’s hot start will prove critical as the rest of the year unfolds.
It’s been nearly a dozen years since Italy’s Enel SpA (Italy: ENEL, OTC: ENLAY) acquired a majority stake in Spain’s Endesa SA (Spain: ELE)—and immediately became the largest holder of electricity assets in South America as well. That was thanks to a much earlier merger between Endesa and the former Enersis of Chile, which had built a collection of assets across several countries most importantly Brazil.
TransCanada Corp (TSX: TRP, NYSE: TRP) has long been synonymous with the delayed north leg of the Keystone XL pipeline. Earlier this decade, the project to deliver Alberta oil to the US Gulf Coast seemed a sure thing. Then it became the one pipeline the Obama Administration rejected, only to be revived by the Trump Administration.
Sweet yields can bring sour consequences. That’s a lesson I learned once again, after recommending high yielding CenturyLink Inc (NYSE: CTL) in last month’s Feature article. The company was on the Endangered Dividends List for shrinking revenue. Nonetheless, hefty free cash flow and attractive broadband assets convinced me the dividend could be maintained.
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