Newsletter Subject

This 9.7% Yielder Has Sprung a Leak

From

wealthyretirement.com

Email Address

wealthyretirement@mb.wealthyretirement.com

Sent On

Wed, Sep 8, 2021 08:56 PM

Email Preheader Text

This substantial 9.7% yielder comes with substantial risk... SPONSORED What do Verizon, AT&T, T-Mobi

This substantial 9.7% yielder comes with substantial risk... [Wealthy Retirement]( SPONSORED [SHOCKING: $100 Billion Surging Into the 5G Market]( [Closeup $100 Bills]( What do Verizon, AT&T, T-Mobile, Dish Network, Charter Communications and Comcast have in common? According to Barron's, they're all participating in "secret bidding" to secure as much as $100 billion worth of 5G spectrum. The big winner in all of this frenzied spending? This little-known tech stock, which trades for less than $20 a share. [Get the scoop here...]( Editor's Note: Oof! Another lackluster jobs report, a resurgence in COVID-19 rates and rising inflation - all these omens point to a coming market downturn. To hedge against that possibility, Chief Income Strategist Marc Lichtenfeld has you covered. He's found a bond carrying a [contractually obligated 158% total return over the next three years](. It's one of a dozen recommendations with double- and triple-digit returns Marc has gathered for Oxford Bond Advantage, his VIP Trading Research Service featuring a new strategy with a perfect track record. [For full details, click here.]( - Kyle Wehrle, Assistant Managing Editor [SAFETY NET]( Is This MLP's 9.7% Yield a Shell Game? Marc Lichtenfeld, Chief Income Strategist, The Oxford Club [Marc Lichtenfeld] Last week in this column, I [covered]( Enbridge (NYSE: ENB), a pipeline company with a rock-solid 6.7% yield. Not surprisingly, that led to a request from a reader to look at the dividend safety of another pipeline company, Shell Midstream Partners LP (NYSE: SHLX), which has an even more robust yield of 9.7%. Houston-based Shell Midstream has been steadily growing its cash flow. Since Shell Midstream is a master limited partnership (MLP), we look at cash available for distribution, or CAD, as the measure of cash flow on which to base our analysis. [Shell's CAD Is Moving in the Right Direction]( You can see that CAD has increased in each of the past three years and that, in 2021, it is forecast to grow another $22 million, or 3%. Last year, Shell Midstream generated $658 million in CAD, but it paid investors $670 million for a 102% payout ratio. That means it paid unitholders more in distributions than it generated in cash flow (MLPs have units, not shares, and they pay distributions, not dividends). We don't like to see that. It's not sustainable and often leads to dividend cuts. This year, distributions are expected to decline to $541 million, which would account for just 78% of the expected $680 million in CAD. SPONSORED [2021: The Year of Stockflation?]( [Money Flowing]( $11.2 TRILLION is about to unleash the biggest force to ever hit the market... But three new initial public offerings could reap the fastest gains... [Get the Details Here]( From the time Shell Midstream started paying a distribution in 2015, it reliably boosted the payout to investors every quarter. Then, in May of 2020, it hit the brakes on the increases with the quarterly distribution stuck at $0.46 per unit. In July 2021, Shell Midstream, perhaps in reaction to the 100%-plus payout ratio, slashed the distribution to $0.30 per unit quarterly. I understand why the company reduced the payout, but I still don't like to see it. Once a management team cuts a distribution or dividend for the first time, it is more likely to do so again in the future if the going gets tough. The fact that Shell Midstream lowered the distribution once is a big red flag. That combined with last year's high payout ratio suggests that if CAD declines and the payout ratio gets too high again, the company wouldn't hesitate to drop the distribution even lower. Right now, cash flow covers the distribution. If it doesn't in the future, the distribution could be in jeopardy. Dividend Safety Rating: C [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 below. You can also search to see whether I've written about your favorite dividend payer recently. Just click on the magnifying glass on the upper right-hand part of the [Wealthy Retirement homepage]( and enter the company's name. Good investing, Marc [Leave a Comment]( TYPE A COMPANY'S NAME BELOW MORE FROM WEALTHY RETIREMENT [The Stock Market Has Entered Perilous New Territory]( [It's Hard to Go Wrong With Municipal Bonds]( [Stabilize Your Portfolio With Bonds]( [Facebook]( [Facebook]( [Twitter]( [Twitter]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AThis%20substantial%209.7%%20yielder%20comes%20with%20substantial%20risk...%0D%0A%0D [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AThis%20substantial%209.7%%20yielder%20comes%20with%20substantial%20risk...%0D%0A%0D [Email Share]( [Push Alert]( SPONSORED [Billion-Dollar Crypto Fund Dumps Bitcoin for $2 "3rd-Gen" Crypto]( [EKCoin]( [Here's Why It Solves Crypto's Biggest Problems.]( [The Oxford Club]( You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. [Privacy Policy]( | [Whitelist Wealthy Retirement]( | [Unsubscribe]( © 2021 The Oxford Club, LLC All Rights Reserved The Oxford Club | [105 West Monument Street](#) | [Baltimore, MD 21201](#) North America: [877.808.9795](#) | International: [443.353.4621](#) [Oxfordclub.com]( The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of printed-only publications prior to following an initial recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, 105 W. Monument Street, Baltimore MD 21201.

Marketing emails from wealthyretirement.com

View More
Sent On

06/12/2024

Sent On

04/12/2024

Sent On

03/12/2024

Sent On

02/12/2024

Sent On

30/11/2024

Sent On

29/11/2024

Email Content Statistics

Subscribe Now

Subject Line Length

Data shows that subject lines with 6 to 10 words generated 21 percent higher open rate.

Subscribe Now

Average in this category

Subscribe Now

Number of Words

The more words in the content, the more time the user will need to spend reading. Get straight to the point with catchy short phrases and interesting photos and graphics.

Subscribe Now

Average in this category

Subscribe Now

Number of Images

More images or large images might cause the email to load slower. Aim for a balance of words and images.

Subscribe Now

Average in this category

Subscribe Now

Time to Read

Longer reading time requires more attention and patience from users. Aim for short phrases and catchy keywords.

Subscribe Now

Average in this category

Subscribe Now

Predicted open rate

Subscribe Now

Spam Score

Spam score is determined by a large number of checks performed on the content of the email. For the best delivery results, it is advised to lower your spam score as much as possible.

Subscribe Now

Flesch reading score

Flesch reading score measures how complex a text is. The lower the score, the more difficult the text is to read. The Flesch readability score uses the average length of your sentences (measured by the number of words) and the average number of syllables per word in an equation to calculate the reading ease. Text with a very high Flesch reading ease score (about 100) is straightforward and easy to read, with short sentences and no words of more than two syllables. Usually, a reading ease score of 60-70 is considered acceptable/normal for web copy.

Subscribe Now

Technologies

What powers this email? Every email we receive is parsed to determine the sending ESP and any additional email technologies used.

Subscribe Now

Email Size (not include images)

Font Used

No. Font Name
Subscribe Now

Copyright © 2019–2025 SimilarMail.