WPZ - A Well Covered 7.1% Yield From A Deeply Hated Growth Stock
Few market sectors are as despised as the midstream sector. The ETRACS 2xMonthly Leveraged Alerian MLP Infrastructure Index ETN Series B (MLPQ) bottomed at $25.63 on 3/27/2018. Despite the historic bull market, this was a 2 year drop of about 50%. Midstream has suffered despite soaring U.S. oil and natural gas production which should favor pipelines and other infrastructure required to process and transport it. The sharp reduction in corporate tax rates raised questions about the MLP model. Lower valuations created a vicious cycle. Less access to capital from selling stock forced many