This 8.8%-Yielding Dividend Is About to Head Even Higher

Crestwood Equity Partners (NYSE: CEQP) stands out in today's low-yield environment. The master limited partnership (MLP) currently offers an 8.8% yield, multiples above the S&P 500's 1.4% dividend yield. 

While a dividend yield that high might seem to be at a high risk of a reduction, that's not the case with Crestwood's payout. Instead of heading lower, the MLP plans to increase its distribution after closing its most recent acquisition. Meanwhile, with a strong financial profile, it has the flexibility to continue expanding, which could fuel continued distribution growth. 

Crestwood Equity Partners recently reported its fourth-quarter and full-year results. The MLP generated $91.1 million of distributable cash flow in the fourth quarter, pushing its full-year total to $371.1 million. That was enough money to cover its distribution by 2.3 times in the fourth quarter and 2.4 times for the full year. 

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Source Fool.com