A $3.8 Billion Deal Is Making These Ultra-High-Yielding Dividend Stocks Even Safer
Dividend sustainability has been an issue for master limited partnership (MLP) Plains All American Pipeline (NASDAQ: PAA) and its general partner (GP) Plains GP Holdings (NASDAQ: PAGP) over the years. The MLP has cut its distribution several times over the years due to earnings volatility and balance sheet issues, causing its GP to cut its dividend. However, Plains All American Pipeline has taken several steps to reduce its earnings volatility and leverage ratio. Those actions have paid big dividends for investors, as the MLP has steadily rebuilt its payment level. That payout -- which yields over 8% at PAA and is more than 7.5% at PAGP -- is now growing even stronger after the oil pipeline company agreed to sell its Canadian natural gas liquids (NGLs) business for nearly $3.8 billion. It makes these high-yielding dividend stocks a lot safer for income-seeking investors.Image source: Getty Images.Continue reading
Dividend sustainability has been an issue for master limited partnership (MLP) Plains All American Pipeline (NASDAQ: PAA) and its general partner (GP) Plains GP Holdings (NASDAQ: PAGP) over the years. The MLP has cut its distribution several times over the years due to earnings volatility and balance sheet issues, causing its GP to cut its dividend.
However, Plains All American Pipeline has taken several steps to reduce its earnings volatility and leverage ratio. Those actions have paid big dividends for investors, as the MLP has steadily rebuilt its payment level. That payout -- which yields over 8% at PAA and is more than 7.5% at PAGP -- is now growing even stronger after the oil pipeline company agreed to sell its Canadian natural gas liquids (NGLs) business for nearly $3.8 billion. It makes these high-yielding dividend stocks a lot safer for income-seeking investors.
Image source: Getty Images.
