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Buy This 8%-Plus Yielder for the Next Leg Up

Breakout candidate RNF is expected to continue to receive favorable tax treatment


Rentech Nitrogen Partners L.P. (NYSE:RNF) — This master-limited partnership (MLP) is a provider of clean energy solutions and nitrogen fertilizer. Its Q3 2012 earnings of $0.75 per share beat consensus estimates of $0.63. Revenues grew by 53% versus estimates of 22% growth.

RNF currently pays a dividend of $3.40 per share for an 8.58% yield. As a publically traded limited partnership (PTP), Rentech is expected to continue to receive favorable tax treatment. See the NAPTP website for information on PTPs, current thinking on their tax treatment, and answers to just about every question you might have about them.

On Thursday, the stock broke from a consolidation rectangle pattern that formed following a run from $22 to over $38. The breakout should add another leg to its bull market with a near-term objective of $44, but long-term investors could receive a much higher return.

RNF Chart
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