SPH - Suburban Propane Partners: A 10%+ Yield Ahead In The New Age Of Distribution Growth

• Suburban Propane Partners has increased their distributions for the first time since 2015, thereby pushing their already high yield even higher.
• They have seen strong financial performance thus far during their fiscal year 2021 across both their cash flow performance and accrual-based EBITDA.
• Their distribution coverage remains very strong and thus provides ample free cash flow to fund upwards over a 10% yield on current cost.
• Their ample free cash flow and strong financial performance have seen their leverage rapidly improving, and looking ahead, there are few uses on the horizon for their cash other than distributions.
• Since they continue performing strongly and appear to have entered the new age of distribution growth, it should be no surprise that my very bullish rating is being maintained.

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