An 11% Yielder, With Strong 1.5X Coverage, Has Finally Turned Around

Energy. You can drill for it, buy and sell it, transport it via pipelines, ships and rail, supply it to your local community in various forms, and you can invest in its many forms, be it crude, natgas, solar, wind, or thermal. This LP yields 11.21%, with very strong 1.48X trailing coverage. Management sold off non-performing assets in 2017 and has a clear path to stable performance in 2018. Revenue grew 23% in Q1 '18, and distribution coverage was 1.85X.

Global Partners LP (GLP), is a diversified energy company which we've owned since the Crash of 2008, when we were lucky enough to have bought it at firesale prices, at a time when the world was seemingly going to end. We've held onto GLP since then, through its big growth phase, when it rose to the high 40s in 2014, through its downward spiral in the Crude Crash of late 2015-early 2016, when it reached the low teens (along with many other energy companies).

Source: Seeking Alpha

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