2 Scorching Hot High-Yield Dividend Stocks -- Are They Buys?
Coal miner Alliance Resource Partners, L.P. (NASDAQ: ARLP) offers an impressive 10.6% distribution yield. Midstream energy player Buckeye Partners, L.P. (NYSE: BPL) provides unitholders with a hot 8.4% yield. Those are fat yields, but are these two partnerships buys at current prices? Here's what you need to know.
There's no question that thermal coal miners are under intense pressure today from low prices. In fact, Alliance noted this fact in its second quarter earnings release, explaining that, "...coal sales revenues declined due to the anticipated reduction in coal sales prices." However, coal volumes were up, and the company was able to cut costs, leading to flat year over year net income of $0.82 per unit. The partnership remains on track to meet management's full-year guidance.
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Source: Fool.com
Alliance Resource Partners Stock
With 7 Buy predictions and not the single Sell prediction the community is currently very high on Alliance Resource Partners.
With a target price of 25 € there is potential for a 531.31% increase which would mean more than doubling the current price of 3.96 € for Alliance Resource Partners.
