Energy Business

Get Over 10% Dividends and Huge Total Return Potential With These 2 MLPs

Oil has rallied back nicely after an awful August, which saw a big pullback in the black gold. The good thing for most oil producers is that with oil over the $60 a barrel mark and closing in on the $70 level, many are able to wring out very solid profits at these prices. The good news for investors is that energy master limited partnerships (MLPs) offer a somewhat safer way to play the sector and also pay out some sizable distributions.

We screened the 24/7 Wall St. MLP research universe looking for companies with the highest yields, and found two top choices for investors looking for energy exposure and huge income payouts.  Remember that no single analyst call should ever be used as a basis to buy or sell a stock.

CrossAmerica Partners

This high-yielding gem offers investors among the highest MLP dividends out there. CrossAmerica Partners L.P. (NYSE: CAPL) engages in the wholesale distribution of motor fuels, operation of convenience stores and ownership and leasing of real estate used in the retail distribution of motor fuels in the United States.

The company operates in two segments. The Wholesale segment engages in the wholesale distribution of motor fuels to lessee dealers, independent dealers, commission agents and company-operated retail sites. The Retail segment is involved in the sale of convenience merchandise items and retail sale of motor fuels at company-operated retail sites and retail sites operated by commission agents. As of March 1, 2021, the company distributed fuel to approximately 1,700 locations and owned or leased approximately 1,100 sites.

Shareholders receive a 10.84% distribution. RBC Capital Markets has a Sector Perform rating and an $18 price target on the shares. That compares with the $17.00 consensus target and Thursday’s closing price of $19.38 a share.

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