We go ex-D on August 2nd. Today a distribution came into the wife's regular IRA which I promptly used to add 41 NGL units. I now manage 15,500 units of NGL and am scouring the universe for opportunities to add another 500. I could borrow via margin but am unwilling to do so. Those new units cost me less than $12.50 when we back out the pending 39 cent distribution, so I'm really good with that.
Given all the excitement over ALDW, it's easy to understand that not all eyes are on NGL. But they should be sharing the limelight as NGL units priced at $12.85 (at this point in time) are in line to receive a yield of about 12.30% or so. This is so outrageous, it's nearly a steal.
I've had to let go of a lot of earlier picks so as to make headroom for my NGL holdings. Fortunately, most were sufficiently profitable so while I was cutting off opportunity in one sense, I was enlarging greater opportunity in another. And now I have just nine (9) individual stocks, a far cry from the 83 formerly held about four years ago. However, the portfolio cash value is now more than twice its earlier total asset value.
This year it appears ALDW will be my runaway profit leader. I predict NGL will be the one most likely to succeed next year as investor sentiment gives way to common sense aka "follow the money streaming in!"
Meanwhile, today spells opportunity for investors to add inexpensively to their NGL holdings. Anything paid under $13 means the buyer is adding units at hardly more than $12.50. That works out to a yield greater than 12.50%. There's not a lot of places one can find opportunity of this magnitude.
And now you know why I'm adding and on the hunt for more.
Good fortune to all!
