Another Blue Wave Special

Hey There Income Hunters, 

A day after posting Medical Properties Trust (MPW) as a Blue Wave Special …

They were up 3%.

Gnarly.

Today, I have another one that will kill it in 2021 as a Tsunami of cash fuels Crude to $65 by year-end … 

There are multiple forces at work that will drive crude prices higher. As you can see below, Enterprise Products Partners (EPD) has a lot of catching up to do.


You know how much I love companies that build wide moats (otherwise known as advantages over competition).


In the Oil & Gas business, you do that by having quality assets, great location and quality contracts …

EPD stands out in each category.

You can tell by looking at a single ratio called: the Return on Invested Capital (ROIC).

Check this out… 

Steady returns year-after-year and they are still returning double digits as their capital cost has dropped.

EPD is expected to average 11% ROIC for the next 10 years.

This is a great long-term hold … They will continue to increase revenues as oil prices benefit from less supply and greater demand as the year progresses. 

Two MORE nuggets for you:

  • EDP pays a $1.80 dividend that goes ex-div 1/28/21. The yield is 8.45% AND it grows at 3.34% a year for a total annualized return of 11.79%. This looks like a homerun stock in your long-term portfolio. 
  • Morningstar has the stock trading at a 16% discount. With Vol this low, I’m buying the 22 calls to June.

Remember …

If you want to have an awesome quality of life in retirement buying stocks like this, reinvesting dividends and letting compound interest grow your wealth exponentially is a tremendous strategy.

The Power Income Portfolio will deliver financial freedom…

Have a great weekend everyone and until next time, 

Live & Trade with Passion my Friends, 

Griff


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