Introduction
Following the economic turmoil stemming from the coronavirus, it is becoming common to see distributions being reduced. Several weeks ago when Global Partners (GLP) announced its latest quarterly distribution, they reduced it by a painful 25%. This was clearly unwelcome news for GLP's unitholders and since its distribution yield is still firmly in the double-digit territory, many investors may feel that this presents an opportunity, but unfortunately, they still face the prospects of further reductions in the future.
Distribution Coverage
When assessing distribution coverage, I prefer to forgo using earnings per