Hey There Income Hunters,
A day after posting Medical Properties Trust (MPW) as a Blue Wave Special …
They were up 3%.
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.
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,
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