SUN - Sunoco: 2021 Looks Like 2020 With Less Turmoil But You'll Still Get That 10% Yield

• When it comes to investing, one of my biggest surprises from 2020 was seeing Sunoco and the resilient cash flows that allowed them to sustain their distributions amidst the turmoil.
• This marked the first year since at least before 2017 that were able to self-fund their distribution payments.
• They intend to see this happen again during 2021, but it could prove tricky with their guidance for at least 25% higher capital expenditure.
• Their leverage and liquidity further improved during the fourth quarter of 2020 and provide a sufficient temporary backstop to support distributions, if required.
• Following this surprisingly resilient year of downturn and likelihood of sustaining their very high 10% distribution yield, I believe that maintaining my bullish rating is appropriate.

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