Suburban Propane Partners
It’s tough to beat utilities for dividends, especially partnerships, which explains why Suburban Propane Partners (SPH) throws off such an ample stream of cash.
Shares in this small-cap are up just 18% for the year-to-date, but then, this is an income play. Indeed, add in those payments and SPH is up more than 26% this year. That outpaces the S&P 500′s price gain and lags the broader market’s total return by just a percentage point.
Propane is kind of a backwater business in the energy industry, but with natural gas prices falling and propane prices rising, Suburban Propane Partners is having the last laugh.
Wall Street sees earnings per share jumping 28% this quarter and 44% this year — both of which could prove conservative if winter comes in sooner and colder than usual.
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