- I bought units of PSXP for tax-advantaged MLP income and what appeared to be an excellent dividend growth platform.
- The income came as expected, and the growth came as expected, but the depreciation of the unit price has been, well, a disaster.
- That said, the dividend was not cut in Q2 (it was increased), the worst of COVID-19's impact is behind it, and the new Gray Oak pipeline is now in service.
- PSXP is grossly undervalued and the 14.4% yield is very attractive. PSXP is a Buy and could easily trade up to $40 - 60% higher than Tuesday's close.
For further details see:
Phillips 66 Partners: My Favorite Mistake Is A Buy