This 8.2% Yielder Deserves an Upgrade

Every business comes with its risk. As we have seen plenty of times, even the most solid companies can experience a slowdown due to an unexpected event. This is particularly true for a group of high-yield stocks called master limited partnerships, or MLPs. Most MLPs operate in the oil and gas industry. With commodity prices being volatile, an MLP’s business may experience some ups and downs...

Now, you are probably wondering, “Oil prices are tumbling at the moment, why would you say this MLP stock deserves an upgrade?” Well, for one, while Enviva Partners LP (NYSE:EVA) is indeed an MLP, its business has nothing to do with oil and gas. Headquartered in Bethesda, Maryland, Enviva Partners is a producer of wood pellets—the most common type of pellet fuel. The company aggregates wood fiber and processes it into a transportable form. Wood pellets provide a cleaner energy alternative to fossil fuels. For instance, Enviva’s electric utilities customers can use wood pellets to replace coal in the power generation process, reducing their greenhouse gas emissions.

Source: Income Investors

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