Showing posts with label Alliance Resource Partners. Show all posts
Showing posts with label Alliance Resource Partners. Show all posts

Wednesday, January 28, 2015

ARLP coal fires utilities and income

Alliance Resource Partners declares $0.65 distribution http://seekingalpha.com/currents/post/2249686?source=ansh-d $ARLP
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Thursday, September 25, 2014

ARLP 5.6 percent yield and a call for more income

It is always funny that I jump on the computer during a down market to find income.   Alliance Resource Partners, symbol ARLP is one such opportunity.  

ARLP Slpit June 17, 2014 2 for 1.   Dividend fundamentals are:
$4.14 E $2.50 D 5.62% yield with a 5 year dividend growth rate of 13.36/yr. D/E .84.

Covered call today is worth a consideration.




TheMoneyMadam
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Wednesday, October 30, 2013

Dividends & Income - Why ARLP is a compelling buy

Alliance Resource Partners (ARLP) is the eighteenth Dividend Machine for 2013

 

Dividend and Income investing requires a plan and a lot of discipline to be successful.   It is not for everyone, but, if you are planning to no longer work and want your savings to generate at least some of your income, you need to learn how to invest using dividends.

 

 


Think of it this way:   $1,000,000 (one million) dollars invested in a well respected low cost EFT such as SPDR’s SDY, will produce about $22,100 dollars of income per year.   Dividend Machines can deliver around $37,500.   Which one would you like?   



You can boost your income using covered calls and below par high income bonds.  These investments require some work.    Or, you could consider the newest 2013 Dividend Machine Alliance Resource Partners, ARLP.  I do not recommend putting all your eggs in one basket, but ARLP should pay about $60,000 income on that million dollars. 


Dividend Machine Strategy


To qualify as a Dividend Machine a company has to have good fundamentals and a good history.   Four criteria must be met and they include E.P.S. that are greater than the dividend payout.  A minimal three percent dividend yield and we would prefer higher; dividend increases every year for a sustained period of time and finally a debt to equity ratio of 1 or less or equal to industry standards. 


This year I wanted to pick a dividend machine with one other characteristic that would make it a compelling buy.  In the past, I simply picked a dividend machine based on the four basic criteria.


I have never used trends, market moves, or other factors to determine if and when I should buy a stock for income.    



Why is Alliance Resource Partners (ARLP) compelling?

Presented in the table below are ARLP’s dividend machine fundamentals.   This stock meets every criteria.  The reason I really want to add ARLP to my income portfolio is rate of dividend increases.   





In November of 2008, ARLP paid a quarterly dividend of $.70 per share.  This year, five years later, the quarterly dividend will be $1.175 if you own the stock on 11/12/2013.   ARLP’s dividend has increased 13.6% per year on average or an increase of 67.86% in five years.   The SDY has also increased the dividend but not as much as ARLP.


Consider Alliance Resource Partners (ARLP) for the income producing portion of your portfolio.


The Money Madam
 





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