High-Dividend Stock Now Yields 12% - Trap Or Treasure?

Back to the dog pound again - to take one of our holdings out for a walk in the light of day. This stock now yields 11.83%, with 1.23 trailing coverage. It has fallen 14% in the past quarter and is 9% below analysts' lowest price target. Distribution coverage fell in Q1, but a pending Q3 acquisition should greatly improve coverage. It has the highest ROA, ROE and Operating Margin, with the lowest Net Debt/EBITDA of its peers. We offer an alternative, actionable trade for getting a much lower entry point.

Golar LNG Partners LP (NASDAQ:GMLP) is a limited partnership formed by Golar LNG Ltd. (NASDAQ:GLNG) to own and operate floating storage and regasification units (or FSRUs) and LNG carriers under long-term charters, which it defines as charters of five years or more. GMLP had its IPO in April 2011. In general, FSRUs take in less revenue than LNG carriers.

Source: Seeking Alpha

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