Introduction
Following interest rates falling to around record lows during the last few months, the hunt for high yield has become even more insatiable for many dividend investors. Whilst the Master Limited Partnerships are well-known amongst dividend investors, many are often deterred by their high leverage and debt-funded distributions. Nevertheless, this is not the situation for the double-digit-yielding ethylene producing Westlake Chemical Partners (WLKP).
Distribution Coverage
When assessing distribution coverage, I prefer to forgo using earnings per share and use free cash flow instead, since distributions are paid from cash and not from