Comparing distribution growth

Phillips 66 Partners (PSXP) increased its 3Q17 distribution to 64.6 cents per unit, which represents year-over-year distribution growth of 22.0%. This is 5.0% higher than its 2Q17 distributions. Since its IPO (initial public offering) in 2013, PSXP has increased its distributions for 16 consecutive quarters.

ANDX, HEP, and PBFX: Stocks Yielding Higher than 7%

The chart above shows the quarterly per-share distributions for Phillips 66 Partners, Holly Energy Partners (HEP), PBF Logistics (PBFX), and Andeavor Logistics (ANDX) over the last 11 quarters.

Andeavor Logistics raised its quarterly distribution to ~98.5 cents per unit in 3Q17, which represents year-over-year distribution growth of ~13.0%. Holly Energy Partners raised its quarterly distribution to 64.5 cents per unit in 3Q17, which represents year-over-year distribution growth of 8.4%, exceeding HEP’s distribution growth target of 8.0%.

PBF Logistics raised its quarterly distribution to $0.48 per unit in 3Q17, which represents a year-over-year increase of 9.1%.

Dividend yields

PBF Logistics is currently trading at a yield of ~9.0%. Holly Energy Partners and Andeavor Logistics are trading at yields of nearly 8.0% and 7.0%, respectively. In comparison, Phillips 66 Partners currently yields ~4.6%. The SPDR S&P 500 ETF (SPY) (SPX-INDEX) currently yields slightly less than 2.0%.

Attractive yields, along with growing distributions, make these stocks interesting for income investors.

Quarter-over-quarter growth

Although Phillips 66 Partners’ yield is the lowest among the four companies, its distribution growth is the highest. PSXP’s distributions grew at a rate of ~5.0% quarter-over-quarter over the last seven quarters.

Andeavor Logistics, which raised distributions ~4.0% every quarter in 2015 and 2016, offered a much lower growth rate in 2017. In 3Q17, its distributions increased by just 1.0% over the previous quarter.

Latest articles

President Trump is not happy with the present Fed rate cut. He wants the cutback to be higher. So high that the interest rates are negative.

Yesterday, Goldman Sachs' strategist warned of high volatility in October. Based on Goldman Sachs' data, since 1928 volatility in October is 25% higher.

On September 19, at Delivering Alpha Conference, Jim Chanos said Grubhub (GRUB) is a very good short. He said that Guruhub is almost not making any money.

The Chinese delegation canceled planned goodwill visits to US farms because of trade war escalations. This affected markets yesterday.

Tesla (TSLA) CEO Elon Musk is one of the most widely followed billionaires on Twitter. His love for Twitter is no secret.

The pace that internet video streaming has evolved is nothing short of revolutionary. Streaming is a serious threat to the cable TV industry.