High-Dividend Stock Yields 10%, Bucked Brexit Pullback, Has Big Cash Flow And Revenue Growth

This stock was steady during the recent Brexit pullback and has a built-in upside future gain. It has distribution coverage of over 14x and had record distributable cash flow in Q1 2016. It had 20% revenue growth, 25% EBITDA growth, and 26% DCF growth in Q1 2016. Did the recent Brexit pullback and volatility give you the willies? Many dividend stocks, particularly financials, fell by double digits between 6/24/16 and 6/27/16 in the most volatile sessions since early February. But a few high dividend stocks that we've covered in recent articles barely budged. Notably, most of our favorite preferred stocks held firm. This makes more sense now than ever. Why? ...

Because there's now very little chance of the Fed raising rates in 2016 and preferreds can experience downward pressure when there are strong rate hike fears as they did in December 2014. We've written about Dynagas LNG Partners LP's (NYSE:DLNG) common units and its Preferred A shares (DLNG-A) previously. We own both the common and the preferred, but we feel that the preferred shares offer income investors a unique opportunity to: 1. Own a more stable dividend stock, which isn't nearly as volatile in market pullbacks or on down-days. 2. Lock in a future upside gain of over 8%, due to being priced significantly below their liquidation/call value. 3. Earn a 9.9% dividend yield on an income stream that is covered by over 14 times.

Source: Seeking Alpha

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