Tuesday, August 09, 2022 8:56:56 PM
Pipelines are often set up as Regulated Investment Companies (RICs). They pay astronomically high dividends because they are required to pay out 90% of Taxable income. So to grow, they often have to sell more stock, often via a Rights Offering which can lead to sudden and severe dilution. Or they may simply load up on dangerous debt.
Dilution or debt, pick your poison.
Here's the ugly 7-year chart for NGL Energy Partners. Tons of retirees including many IHUBbers bought this bowser for its once-showy dividend.
Dilution or debt, pick your poison.
Here's the ugly 7-year chart for NGL Energy Partners. Tons of retirees including many IHUBbers bought this bowser for its once-showy dividend.
______________________________________________________________
Because the Good Life is Just a Pump or Two Away
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
