Suburban Propane Partners (SPH) has dramatically underperformed the market in the last five years. During this period, the stock has plunged 50% whereas S&P has rallied 58%. Consequently, while S&P is at an all-time high, Suburban is hovering around its 10-year lows. However, income-oriented investors should note that the depressed stock price of Suburban has resulted in an exceptional 11.0% distribution yield. While such high yields usually signal the risk of an imminent distribution cut, the yield of Suburban is much safer than most investors think.
Suburban is a master limited partnership