Good Dividend Play For Under $10 A Share $EROC

11 Mar 2014

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By Bret Jensen

Income investors have had to be nimble over the last few years due to the ultra-low interest rate environment courtesy of the Federal Reserve. Many intrepid yield investors have learned to get outside their comfort zones and pick up shares outside the usual dividend paying sectors (Telecom, Pharma, Utilities & Consumer Staples) of the market.

I think this mindset has served and will continue to serve income investors well as the low interest rate environment is likely be in place for the foreseeable future. Putting on my “creative” hat, I have come up with some dividend picks from nontraditional sectors. All selections look attractive on both a yield and value perspective. In addition, their stocks all go for under $10 a share.

My highest risk/reward play in the income space is Eagle Rock Energy Partners (EROC). This energy partnership has traditionally consisted of both an upstream and a midstream business. However, the company recently announced it is selling the midstream part of its business to Regency Energy Partners (RGP) for $1.325B.

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Linn Energy: NGLs Are The Key To Higher Distributions $LINE

11 Mar 2014

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By Albert Alfonso

Linn Energy (LINE) has always been one of the more controversial stocks out there. The company has previously been the target of a series of bearish articles and reports from Barrons and Hedgeye which greatly impacted its unit price in 2013. Indeed, its crucial merger with Berry Petroleum was nearly scuttled thanks to the depressed share price of its sister stock LinnCo (LNCO), which was being used as the “currency” for the transaction.

In addition, Linn Energy has also at times struggled operationally. During most of 2013, the company faced much weaker prices for NGLs, which has had an outsized impact on DCF due to most of this production being unhedged. However, as I wrote about a month ago, NGLs prices have recovered in 2014, with prices now at levels not seen in years. The focus of this article will be on NGLs and if Linn Energy is able to benefit from their recent rise.

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