By Robert Hauver
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|
|Return On Assets||7.48%||4.18%|
|Return On Equity||10.00%||7.91%|
|Return on Income||7.79%||5.18%|
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.