Spectra Energy Partners LP, (SEP), is an oil & pipeline firm just listed in the Energy table section of our High Dividend Stocks by Sector Tables. SEP’s 79.99% profit margin is the second highest in the Oil & Gas Pipeline group.
SEP also outshines its peers in many other figures in our Industry Comparison table:
| Spectra Energy | Oil & Gas Pipeline Industry | |
| Profit Margin | 79.99% | 15.29% |
| Debt/Equity | .31 | 1.63 |
| Return On Assets | 7.48% | 4.18% |
| Return On Equity | 10.00% | 7.91% |
| Return on Income | 7.79% | 5.18% |
| P/E | 17.89 | 25.33 |
| Price/Book | 1.8 | 2.72 |
Spectra’s $1.60/unit annual dividend appears to be covered by $1.66 EPS, and in line with the 90% mandate for LP’s, with a dividend payout ratio of 91%. SEP has steadily increased its quarterly dividends, from $.30/unit/quarter, to $.40/unit/quarter, since October 2007, and currently has a 5.39% dividend yield.
For investors who want to immediately increase their yield by trading options and selling covered calls, the June 2010 $30.00 call option, (SEPFF), has a current bid/ask of $1.15/$1.45, which is an additional 9.18% annualized yield on the bid price. (The current Put option prices aren’t very attractive).
Disclosure: No positions yet.
Disclaimer: This article is written for information purposes only.
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