Introduction
It's not easy to find preferred shares with a high yield that are both stable and potentially undervalued. I have identified two issued by NGL Energy Partners (NGL):
- NGL Energy Partners LP, 9.00% Class B Fixed/Float Cumulative Preferred Units (NGL.PB)
- NGL Energy Partners LP, 9.625% Class C Fixed/Float Cumulative Preferred Units (NGL.PC)
Given the prevailing opinions from economists on the Fed being devoid of interest rate hikes, the share price should remain intact in the near future while both series stick to their fixed distributions.
DBS chief economist Taimur Baig