NGL-B and NGL-c are still yielding about 14%.
They were both in arrears for about three years, but came out of arrears in April 2024, and have made two payments since then. NGL indicates it expects them to remain current going forward.
Nobody is attracted to a preferred stock that yields 14%?
Question for smart preferred investors - if NGL's balance sheeet improves over the next four quarters (that should happen, a big Cap Ex project is supposed to complete this month, and after that EBITDA should increase while capital spending decreases = free cash should go up) and investors become more confident these preferreds will continue to pay, where would you expect them to trade?
They're now at about $23. I'd expect if investors think they will remain current with dividends, they should trade above $25 par, no?
It seems to me if you buy these guys at $23, in a year you likely receive more than $3.10 in dividends, and the share price moves up $2 to at least $25. So.....dividend + cap gain = $5.10 in one year, on a $23 preferred stock. That's about 22% one year return, excluding taxes.
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NGL Energy Partners LP Announces Quarterly Cash Distribution for the Class B, Class C, and Class D Preferred Units
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