ET - CrossAmerica Partners' Lofty Distribution Looks Sustainable
2024-03-17 05:05:34 ET
Summary
- CrossAmerica Partners LP is a candidate for income-seeking investors with its 9.6% distribution yield and consistent quarterly distribution amount.
- With a FCF yield of 9.8% and earnings yield of 4.7%, CAPL's current distribution is sustainable.
- The management of CAPL, including founder Joe Topper, has a vested interest tightly aligned with unitholders, as evident through insider buying and elimination of IDRs.
- Superior total return is an unrealistic expectation; but, a reliable, robust distribution is a reasonable assumption.
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CrossAmerica Partners' Lofty Distribution Looks Sustainable