Disruptive Investor
Long/short equity, deep value, event-driven, macro

Northern Tier Energy: An Undervalued 22% Dividend Yielder

Any company, which has a capital payback period of just five years by way of its dividend, is certainly worth considering. A buy and hold case for such a company is strengthened further if the cash inflow is gradually improving amidst attractive valuations.

This investment note discusses a 22% dividend yielder, Northern Tier Energy LP (NYSE:NTI), which is an independent downstream energy limited partnership with refining, retail and pipeline operations in the United States. The company operates its assets in two business segments: the refining business and the retail business.

The refining segment primarily consists of an 81,500 barrels per calendar day refinery located in St. Paul Park, Minnesota. The refining business also includes a 17% interest in...

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