We’re adding several new stocks to our model portfolios, including a natural gas pipeline operator, a natural gas diesel engine maker and a master limited partnership, notes income expert Harry Domash, editor of Dividend Detective.
We’re adding ONEOK (OKE
ONEOK expects that 85% to 95% of this year’s dividends will be classified as “return of capital, meaning that you won’t pay taxes on them until you sell your shares. ONEOK pays a 5.1%
Meanwhile, we’re adding Hi-Crush Partners (HCLP
Business was good for Hi-Crush until crude oil prices plunged in 2015, cutting the need for drilling new wells. Revenues dropped precipitously and Hi-Crush suspended paying its distribution in 2015.
Last year, however, drilling activity picked up and that growth trend accelerated as the year progressed. Now analysts expect Hi-Crush to report around $200 million in sales for its December 2017 quarter.
Hi-Crush resumed its distributions in October 2017, starting at $0.15 per unit, then raising it to $0.20 in January. Current yield is 6.2%, but we see considerable distribution growth ahead.
We’re adding Cummins (CMI
Most analysts covering Cummins are rating it at Hold or Sell. But, given current market conditions, Cummins is likely to beat analyst forecasts. So, there’s plenty of upside potential should those analysts upgrade their buy/sell ratings and earnings forecasts.
Harry Domash is editor of the Dividend Detective.
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