shareholdersunite.com

Opportunities in smallcaps

shareholdersunite.com header image 2

EnLink Midstream’s 15% Dividend Yield, Whether There’s A Catch

September 29th, 2020 · No Comments

  • The company was buffeted by the crash in energy prices but swift management action in Q2 managed to turn the situation around.
  • While the company still has a large debt, they do generate a lot of excess free cash flow which enables them to decrease leverage further from the present 4.3x level.
  • Amazingly, even after slashing the dividend in half the yield is still well into double digit territory (and somewhat higher still on the preferred shares).
  • We think the shares can be bought here ($2.50-$2.65) benefiting from a fantastic yield (15%).
  • We do think they have to be more aggressive cutting their leverage though.

Source: EnLink Midstream’s 15% Dividend Yield, Whether There’s A Catch (NYSE:ENLC) | Seeking Alpha

Tags: Uncategorized