That's fine, but as someone who has followed NGL reasonably closely for the past three years, their balance sheet has been strengthening each quarter, and since the recent good quarterly news the preferreds and the common units of NGL are all moving higher, the common (which was about $1.00 at it's bottom in about .... 2021?) is now $9.00, and rising.
The safeness of the NGL preferreds is increasing, but with the share price increases their reasonable expected return is becoming only the yield. I bought a bunch of the preferreds after the tariff tantrum around $20, and those have now paid me two dividends (72 cents) and almost $4 in share price appreciation.
I don't know anything safer that pays 11.5%. When I historically have bought things paying 11.5% I have gotten killed. NGL preferreds are going to just pay you until NGL calls them some time in the future.
Yes, NGL is a debt laden energy infrastructure company mess of a thing, but it's getting simpler. They've sold off lots of assets and are slowly turning into a pure play water transport entity - like an oil pipeline, but full of water. Average life of their contracts is nine years, so that gives some security. |
