2 Double-Digit Yielders to Buy, 2 to Avoid

High yields means high risk, but two stocks may be worth the gamble

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2 Double-Digit Yielders to Buy, 2 to Avoid

PetroLogistics

PetroLogistics 185 2 Double Digit Yielders to Buy, 2 to AvoidDistribution Yield: 20%

PetroLogistics (NYSE:PDH) is a master limited partnership that owns and operates propane dehydrogenation facilities. (For us chemistry geeks, that means it converts propane into propylene.)

The chemical is a starting product for chemical reactions — a raw material used for things like films, packaging and caps. Profit depends on the spread between the commodity pricing between propane and propylene.

Personally, I don’t like being tied to commodities like this. But if you’re willing to ratchet down your holdings in commodity baskets (in a diversified portfolio), and replace it with this company, then PetroLogistics might be worth the risk. The company’s last distribution of 67 cents annualizes out to a whopping 20% yield.

Just remember that PDH falls into the speculative category of investments.


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/in-search-ofthe-14-dividend/.

©2014 InvestorPlace Media, LLC

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