In February, I wrote an article titled “Why Boardwalk Pipelines Is An Absolute Steal At $13.” That article was uncharacteristic compared to the high-quality dividend stocks I usually discuss because it involved a highly unique set of circumstances coming together. To summarize the obvious: you had a pipeline that had never lowered its distribution since becoming publicly traded in 2005 suddenly slash its distribution by 81%, from $0.535 to $0.10 quarterly. Because most energy MLPs are held for their ability to return large amounts of cash to unitholders, most long-term investors in this MLP had a “WTF Am I Doing With This Albatross In My Portfolio?” moment, cutting the price of the partnership in half within a single day of trading.
At the time I wrote that article, the thesis was more of an approximation than a precision. I couldn’t, and still can’t, articulate a moment in which … Read the rest of this article!