Natural Resource Partners
This off-the-radar stock is more of a hybrid holding, but it also holds a huge total return potential. Natural Resource Partners L.P. (NYSE: NRP) owns, manages and leases a portfolio of mineral properties in the United States.
The company owns interests in coal, soda ash, trona and other natural resources. Its coal reserves are primarily located in Appalachia, the Illinois Basin and the Northern Powder River Basin in the United States. Its industrial minerals and aggregates properties are located in the United States, oil and gas royalty assets located in Louisiana, timber assets located in West Virginia and trona ore mining operation and soda ash refinery are located in the Green River Basin, Wyoming.
The company leases a portion of its reserves in exchange for royalty payments, and it owns and leases transportation and processing infrastructure related to coal properties.
Investors will gladly accept the 8.85% distribution. Benchmark’s Buy rating comes with an $18 price target. The consensus target is $15, but Monday’s closing print was $20.36.
This well-known company could be the best buy from more conservative investors. Sunoco L.P. (NYSE: SUN) distributes and retails motor fuels in the United States. The company operates in two segments.
The Fuel Distribution and Marketing segment purchases motor fuel from independent refiners and oil companies and supplies it to independently operated dealer stations, distributors and other consumers of motor fuel, and partnership operated stations, as well as to commission agent locations.
The All Other segment operates retail stores that offer motor fuel, merchandise, foodservice and other services that include credit card processing, car washes, lottery, automated teller machines, money orders, prepaid phone cards and wireless services. It also leases and subleases real estate properties and operates terminal facilities on the Hawaiian Islands. As of December 31, 2020, the company operated 78 retail stores in Hawaii and New Jersey.
Investors receive 8.96% distribution. Barclay’s just raised the price target to $37 from $36 and has an Overweight rating. The posted consensus target is $35.67, and Sunoco stock closed on Monday at $36.85 a share.
These four top companies offer reasonably safe and reliable distributions, plus are they major players in the energy infrastructure arena. Investors looking for solid total return potential can do well owning these MLP leaders. It is important to note that MLP distributions may contain return of principal.
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