CQP - Cheniere Energy- Momentum and Yield
The Fed, Treasury and politicians in Washington are doing everything they can to prop up this market going into the election. They may not succeed, but they’re going to give it the ol’ swampy try, suggests Sean Brodrick, editor of Wealth Megatrends.
At this time, I don’t want to bet against them. At the same time, the global economy is reviving after shutting down during the early stages of the pandemic. And to make sure that works, governments around the world — not just ours — are throwing massive stimulus at their economies and markets.
Cheniere Energy Partners (CQP) is a master limited partnership in the natural gas business. It opened the first large-scale U.S. plant to turn gas into a liquid form that could be exported.
Now, it processes and ships natural gas around the world. Cheniere makes deals using long-term contracts, which protect it from the wild swings in energy prices.
Recently, it began working on a sixth “train” — a liquefaction and purification facility — at its Sabine Pass terminal in Louisiana. It’s set to be operational in 2023.
Meanwhile, Cheniere has repeatedly raised its payout this year, which sets it apart from most other energy companies. And you know I like dividend raisers. Let’s look at the weekly chart below.
Looking at the chart, you can see Cheniere is well off its lows. In fact, it is breaking out. My favorite momentum indicator, The Force Index, has not turned positive yet. But it is improving fast. And you’re paid handsomely to wait.
Cheniere sports a 6.79% distribution yield and that is projected to rise 3.1% per year for the next three years. It recently traded at $38.60.