Energy Transfer Partners LP (ETP)

[benfrankledger]

$ETP Summary comment: ETP is in a vicious cycle, which is unlikely to end anytime soon. The huge debt load forces the company to issue new shares on a regular basis.

As a result, the financial burden of the dividend keeps growing. Moreover, due to the poor performance of the stock, the dilution keeps getting worse, as more shares are required to raise the same dollar amount.

Therefore, the company is likely to be forced to cut its dividend at some point in the future in order to put a stop on this vicious cycle.

Article link: How Safe Is The Dividend Of Energy Transfer Partners? $ETPhttp://www.seekingalpha.com/article/4130911