While Not Perfect, This 14.2% Yielder Deserves a Look

If you’ve been following high-yield stocks, you’ll know that, in today’s market, most of them are not perfect. And this shouldn’t come as a surprise. The average S&P 500 company pays less than two percent. If there’s a solid 10% yielder, income investors would rush to buy it. And by bidding up a company’s stock price, its yield would drop. In other words, if a company’s yield stays at an elevated level, there must be some reason why investors are staying on the sidelines.

Still, that doesn’t mean we should ignore ultra-high yielders completely. NGL Energy Partners LP (NYSE:NGL), for instance, could be worth a look. Headquartered in Tulsa, Oklahoma, NGL is a master limited partnership (MLP) with diverse midstream operations in the energy sector. The partnership provides a wide range of services to producers and end users, including transportation, storage, blending, and marketing of crude oil, natural gas liquid (NGL), refined products, renewables, and water solutions. Right now, NGL Energy Partners stock has a quarterly cash distribution rate of $0.39 per common unit, which, at its current price, equates to a jaw-dropping yield of 14.2%.

Source: Income Investors

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