Albert Alfonso
Dividend investing, dividend growth investing, master limited partnerships, oil & gas

Alon USA Partners: A Permian Basin Based Refiner With A Potential 25% Yield

Alon USA Partners (NYSE:ALDW) is a downstream MLP which is involved in refining and the wholesale marketing of crude based products. The company recently went public late last year, when its general partner Alon USA Energy (NYSE:ALJ) issued about 18% of the units outstanding to the public. Alon Partners is highly sensitive to commodity prices, as the majority of its margin comes from crude oil spreads. Due to the nature of its business, Alon Partners does not offer a fixed quarterly distribution. Instead the company basically pays out nearly all of its cash flow quarter to quarter. Alon Partners' last quarterly distribution was for $1.48 per unit which would equate to a 25% yield at current...

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