- Plains GP Holdings is a rather oddball partnership since it is not normal to be able to purchase units in the General Partner of another Partnership.
- They still offer investors a chance to grab a sustainable high 8% distribution yield, but at the same time, it is not perfect.
- The biggest issue is their continued disappointing earnings which keep trending downwards with their 2021 forecast even lower than 2020 despite the economic recovery.
- Their financial position is not perfect either but thankfully their very high leverage should only prove temporary.
- Whilst their high distribution yield appears exciting, at the same time their lackluster financial performance pulls back on the investment appeal and thus a neutral rating is being issued.
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Plains GP Holdings: You Could Grab A High 8% From This Rather Oddball Partnership, But It's Not Perfect