Stock Advisor launched in February of 2002. Last year, executives started unloading assets and paying down debt.

High payouts look tempting. After selling off its retail business, the company has a lot less cash flow on hand to pay unitholders. For example, the first quarter's coverage ratio was 1.0, not great but a notable improvement over not being able to cover the distribution.

The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Management will have to thread a needle between distributions, debt payments, and asset sales. Forward yield 5.05% Payable May 29; for shareholders of record May 19; ex-div May 15. Returns as of 11/05/2020. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. That's a much more manageable number helped along by the repayment of debt following the gas station sale (long-term debt fell by 35% in the first three months of the year). Therefore, I would give this stock a second look. Through its subsidiaries, Co. is primarily engaged in the distribution of motor fuels to independent dealers, distributors, and other customers and the distribution of motor fuels to end customers at retail sites operated by commission agents. Sunoco LP's business and ability to support its distribution (and that hefty yield) appear to be on more solid ground now that the 7-Eleven deal is complete. This isn't a great backstory for investors concerned about the safety of their income stream. 3 Consumer Staples Stocks Paying Up to 9.5%, Why This Recession Hasn’t Hurt the Stock Market. It also slashed its maintenance capital budget by one third and planned to cut other operating costs. But unlike most distributions in this category, investors can still count on it. This is an entirely free service.

He tries to invest in good souls.

Case in point: wholesale gasoline distributor Sunoco LP (NYSE:SUN). The yield is great, but the uncertainty is just too high right now. Let's conquer your financial goals together...faster. Nike Inc: Up Double Digits in One Month with More Upside Ahead, COVID-19 Tailwinds Boosting McCormick & Company, Incorporated, Western Midstream Partners LP: This 14.8% Yielder Deserves a Second Chance, PepsiCo, Inc.: PEP Stock Is a Future Dividend King, Ares Capital Corporation: Earn an 11.7% Yield from an “Alternative Bank?”, Brookfield Asset Management Inc: Why This “Boring” Dividend Stock Might Soar 233%, Enviva Partners LP: This 7.5% Yielder Deserves a Look. These moves will improve the company's financial flexibility, giving it more cushion to maintain its sky-high payout. Debt to EBITDA has also fallen to around 11 times. The takeaway for investors, however, is that the partnership's past isn't a great guide to the future because the future is going to look vastly different. Check out our privacy policy. Sunoco, like many energy companies, has taken steps to shore up its financial profile following a historic downturn in the energy markets as a result of the COVID-19 outbreak. But unlike most distributions in this category, investors can still count on it. Over the past few years, the partnership’s rapid expansion left the business mired in debt. Most of its business is backed by long-term, take or pay contracts for the delivery of gasoline that provides the partnership with a stable revenue stream. Sunoco pays an annual dividend of $3.30 per share, with a dividend yield of 12.96%. Combining a big debt load with volatile sales looked like a problem in the making. That sub-investment-grade credit rating makes it more expensive and challenging to borrow money during good times and near impossible when markets are in disarray. As such, it will have a hard time delivering on its EBITDA guidance of $670 million-$700 million, which will impact its distribution coverage and leverage ratios.

That's because a large portion of its revenue comes from real estate leases on the gas stations it owns and take-or-pay fuel distribution and storage contracts where customers pay it a set fee even if they don't use the services it provides. Returns as of 11/05/2020. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. That gives it lots of financial flexibility and ample time before it needs to worry about addressing any maturing debt. In the end, there are so many moving parts right now that it's hard to get a good read on Sunoco LP as a business.



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