Can This 13.8% Yielder Recover?

It's been a year since we covered it last... [Wealthy Retirement]( SPONSORED [Take a Look at This Strange Device]( [Lynchpin Device]( can fit in the palm of your hand... Weighs less than a can of soup... And uses less energy than a night light. But it could change EVERYTHING. [Discover its astonishing power now...]( A Note From Chief Income Strategist Marc Lichtenfeld: Before we dive into today's Safety Net, just a quick note to thank all of our veterans on this Veterans Day. I and everyone at Wealthy Retirement are deeply appreciative for all you have done. Thank you. And now on to Safety Net... [SAFETY NET]( This 13.8% Yielder Was Unsafe Last Year... How About Now? Marc Lichtenfeld, Chief Income Strategist, The Oxford Club [Marc Lichtenfeld] A little more than a year ago, my colleague Kristin Orman [wrote]( that the distribution of Global Partners (NYSE: GLP), a large owner of gas stations in the Northeast, could be in trouble if oil prices fell. At the time, the distribution's safety was rated "D" - at a high risk of being cut. (Global Partners is a partnership, so it pays a distribution instead of a dividend.) Kristin was right. Global Partners cut its distribution by 25% in April. But since then, it has raised the distribution twice - almost back to the level where it was before it was reduced. Global Partners owns 21 gas terminals and more than 1,500 gas stations, which fill 1 million gas tanks per day. Now that Global Partners' distribution is back to $0.50 per share quarterly, which comes out to $2 on an annual basis or 13.8% per year, can the company maintain that double-digit payout or do shareholders need to remain wary? Last year, as [oil prices fell]( so did Global Partners' distributable cash flow (DCF). In fact, it crashed 44%. SafetyNet Pro does not like to see declining cash flow. And a 44% drop is particularly bad... What Is SafetyNet Pro?SafetyNet Pro is a groundbreaking tool that predicts dividend cuts with stunning accuracy. With it, you can determine the dividend safety rating of nearly 1,000 stocks. Access to SafetyNet Pro is reserved exclusively for subscribers of Marc's newsletter, The Oxford Income Letter. This year, DCF is forecast to rise a little bit, which is certainly good. It is also encouraging to see that even the lower DCF [can still cover the distribution](. Last year, Global Partners generated $95.7 million in DCF. This year, that total is expected to rise to $99.8 million. Meanwhile, the company paid out $76.6 million in distributions last year and is projected to pay $60.2 million this year. So DCF easily covers the distribution. So should you consider the payout safe? SPONSORED [The "Perfect Stock" Is REAL]( [Stock Movement on Laptop]( And it's only $3... But you've probably never heard of it before... Because it trades under a SECRET name. [Find out more about this "Perfect Stock" right now.]( SafetyNet Pro doesn't think so. While its DCF covers the distribution right now, Global Partners has a history of cutting the distribution when things get tough. [Chart - Global Partner's Distribution History]( With cuts in 2016 and 2020, it's clear that management will cut the distribution when necessary. The huge drop in DCF last year also hurts the safety rating. If Global Partners can boost DCF by a meaningful amount next year, it could get an upgrade. Until then, however, the distribution has to be considered at risk of being cut if DCF slips again. Dividend Safety Rating: D [Dividend Grade Guide] If you have a stock whose dividend safety you'd like me to analyze, leave the ticker symbol in the [comments]( section. Good investing, Marc P.S. High yields like this one are tempting for income investors - but they're not built to last. But you can still earn more than most blue chip stocks will pay while taking on a fraction of the risk... [Click here to learn more.]( [Leave a Comment]( MORE FROM WEALTHY RETIREMENT [Why Oil and Gas May Be a Bargain for Today's Investors]( [Collect Secure Income by Investing in Bonds]( [Why Beauty Is in the Eye of the Bondholder]( [Facebook]( [Facebook]( [Twitter]( [Twitter]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0A It's%20been%20a%20year%20since%20we%20covered%20it%20last... %0D%0A%0D [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0A It's%20been%20a%20year%20since%20we%20covered%20it%20last... %0D%0A%0D SPONSORED [DON'T Buy an Investment Property... Billionaires Do THIS Instead]( [Building on the Palm]( Billionaires (like Mark Cuban... George Soros... 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