Inergy: A Winning Income Stock

One of the best income stocks I have come across since starting my site is Inergy L.P. (NRGY). This propane retailer and natural gas midstream company has again increased its quarterly payout. This is the 31st consecutive increase in the distribution. The stock currently yields almost 9%.

Inergy seems to be especially well managed to control costs and grow revenues. It has not had a hiccup in the 3 years I have been watching the stock. The retail propane business continues to make its margins in both high and low energy price scenarios. The natural gas midstream operations are also not dependent on energy prices.

It is hard to believe the market knocked this stock down to $12.40 per share when the world was ending last November. I would not mind another energy price scare to pick up this stock at a lower price.

Disclosure: Long NRGY

Comments

[SkipK:]

NRGY does seem like a good company, but it's close to 52 week high. not a good time to buy in my opinion

Jul 30 10:24 PM

[Trevose_Lion:]

Can you explain the difference between NRGP and NRGY and which is a better investment for an IRA and/or non-IRA account?

Jul 31 10:06 PM

[Trevose_Lion:]

Can you tell me if NRGY and NRGP payout their distributions similarly? I have heard that some MLPs pay out their distributions in stock shares instead of in cash (KMP vs KMR and EEP vs EEQ).

Nov 11 06:25 PM