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

by Sam Collins | November 30, 2012 1:41 am

Rentech Nitrogen Partners L.P. (NYSE:RNF[1]) — 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[2] 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
Click to Enlarge

Trade of the Day Chart Key

  1. RNF:
  2. NAPTP website:

Source URL:
Short URL: