Introduction
The high-yielding area of the market was struck by a wave of dividends and distributions being reduced throughout the first half of 2020, but there were still several that remained steady, such as those from CrossAmerica Partners (CAPL). Whilst this has thus far been positive for their unitholders who undoubtedly enjoy receiving their massive distribution yield of around 15%, unfortunately this may be about to change.
Distribution Coverage
When assessing distribution coverage, I prefer to forgo using earnings per share and use free cash flow instead since distributions are paid from cash and not