BIPC - This Stock's Ultra-High-Yielding Dividend Is Getting Safer By the Deal
Crestwood Equity Partners (NYSE: CEQP) offers investors a monster yield that currently clocks in at over 10%. While a double-digit percentage yield is often a warning sign, Crestwood's payout is on an increasingly sustainable foundation.
The master limited partnership (MLP) has spent the past several quarters completing a strategic realignment of its business. It recently signed its latest deal to complete that transformation, which will leave it in an even stronger financial position. That deal makes its big-time distribution an attractive option for yield-seeking investors.
On Tuesday, Crestwood Equity Partners revealed that the company and its joint venture partner Brookfield Infrastructure (NYSE: BIPC) (NYSE: BIP) had agreed to sell Tres Palacios Gas Storage for $335 million. Crestwood will receive about $168 million for its 50% stake in the storage facility. It plans to use those proceeds to reduce borrowings on its credit facility. Meanwhile, the transaction is part of Brookfield's ongoing capital recycling strategy of selling mature assets to finance the purchase of new investments with the potential for higher returns.
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This Stock's Ultra-High-Yielding Dividend Is Getting Safer By the Deal