A High-Yield Stock That’s Better at 15% Than One at 20%

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A High-Yield Stock That’s Better at 15% Than One at 20%


Last week I hosted an online session for my Dividend Hunter newsletter subscribers with InfraCap co-founders Jay Hatfield, CEO and Portfolio Manager and Edward Ryan, CFO and COO. During the hour long discussion we covered MLP investing and the changes to the high-yield InfraCap MLP ETF (NYSE: AMZA).

In January, AMZA announced a dividend policy change, going from quarterly to monthly and reducing the overall annual rate. As a result, the AMZA yield went from over 20% down to 15%. The move will benefit investors in the long term, but I wanted to get Jay and Ed in to discuss the different aspects of managing AMZA with my newsletter subscribers. The following is from my notes on the session.

The discussion started with details on valuations in the MLP space. It was shown on the presentation slides that compared to historical values the MLP yield and yield spread over BBB rated bonds are relatively high, which indicates MLPs are undervalued on historical standards.


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