By Robert Hauver
DCP Midstream Partners LP, (DPM), an oil & gas pipeline company, has one of the higher dividend yields in our High Dividend Stocks by Sector tables. It also appears to be undervalued, and has several above-average metrics, when compared to its peers, in our Industry Comparison Table:
|DPM||Oil & Gas Pipeline Industry|
|EPS GROWTH NEXT 5 YRS.||12.00%||4.99%|
DPM, which closed at $30.04 Wednesday, recently declared a $.60/share dividend, payable to shareholders of record Feb. 5th, 2010.
DPM also has covered call and put options available with double-digit annualized yields:
COVERED CALL: July 2010 $30.00 call is currently bid at $1.75, a 13% annualized yield. Covered call sellers would also collect $.60/share in dividends, for an additional 4.47% annualized yield.
CASH-SECURED PUT: July 2010 $30.00 put is currently bid at $2.35, a 17.5% annualized yield, (based on a 100% cash reserve).
Disclosure: Author doesn’t own DPM shares.
Disclaimer: This article is written for informational purposes only.