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Big earnings growth and a high dividend are two variables that don't often go together when screening for the best stocks to buy, but in Global Partners' (NYSE:GLP) case, these 2 features just coalesced in their 2009 Q2 earnings report. A screen for 30%-plus EPS growth this year and quarter-over-quarter, and a 9%-plus dividend turned up mostly energy stocks - oil & gas pipeline or drilling companies, and an assortment of other companies. GLP - a Master Limited Partnership (MLP) firm, just became part of this special group of high dividend paying stocks with high earnings growth. (Many web screeners may not include them yet, as they just reported yesterday).

Although their revenue fell significantly, GLP was able to post major increases in EBITDA, net income, distributable cash flow, net income/diluted unit, by achieving large margin increases, improving their efficiencies, and posting a 3% product volume increase. Here are the numbers:

Global Partners LP 2nd Quarter 2009 Highlights:

($1,000's, except Net Inc/Unit) Q2 2009 Q2 2008 CHANGE
Revenue $1,200,000.00 $2,300,000.00 -47.83%
Distillates - Net Product Margin $13,500.00 $9,300.00 45.16%
Wholesale Gasoline- Net Product Margin $12,100.00 $10,400.00 16.35%
Gross Profit $27,800.00 $22,787.00 22.00%
EBITDA $8,600.00 $6,800.00 26.47%
Distributable Cash Flow $3,300.00 $2,200.00 50.00%
Net Income $978.00 -$1,200.00 181.50%
Net Income/Diluted Ltd. Partner Unit $0.07 -$0.10 170.00%
Ltd Partner Units outstanding (millions) 13.40 13.10 2.29%

Global Partners LP Jan-June 2009 Highlights:

($1,000's, except Net Inc/Unit) JAN-JUNE 2009 JAN-JUNE 2008 CHANGE
Revenue $2,800,000.00 $5,000,000.00 -44.00%
Distillates - Net Product Margin $47,300.00 $32,400.00 45.99%
Wholesale Gasoline- Net Product Margin $23,900.00 $19,000.00 25.79%
Gross Profit $78,500.00 $58,300.00 34.65%
EBITDA $36,000.00 $25,300.00 42.29%
Distributable Cash Flow $25,300.00 $14,000.00 80.71%
Net Income $19,800.00 $7,400.00 167.57%
Net Income/Diluted Ltd. Partner Unit $1.46 $0.55 165.45%
Ltd Partner Units outstanding (millions) 13.30 13.10 1.53%

The company recently announced its second quarter dividend of $.4875/unit (share) for the second quarter, which equals $1.95/unit annually.

At today's opening price of $20.61, GLP's current dividend yield is 9.46%, a yield which is certainly superior to most dividend stocks. In fact, looking at oil stocks in general, this yield is consistently in the top tier, with the exception of the oil & gas drilling/exploration group.

GLP's 5-year dividend growth rate is over 44%, and it has the highest dividend in its peer group, and a forward dividend payout ratio of 67%.

Although GLP is more highly leveraged than many of its peers, its current ratio is also near the top stocks in this group. Its ROE is also near the top, with over 44% owned by insiders, the Slifka family.

Business Outlook:

At the mid-point of 2009, our financial performance and the strategic steps we have taken to grow the business position us for a strong year,” CEO Eric Slifka said. “In recent months, we have continued to optimize our terminal network by initiating organic expansion projects in several Northeast markets, including Philadelphia,Albany, Oyster Bay, NY and Linden, NJ. These projects comprise an additional 870,000 barrels of storage capacity – broadening the depth and breadth of our strategic asset base. In addition, our planned bolt-on acquisition in Newburghincreases our New York footprint and enables us to further build our business. Overall, we remain encouraged about Global’s growth prospects. (August 6, 2009 Business Wire press release)

With the forward P/E of around 7 on this "high growth", high dividend stock , it might pay you to add GLP to your best stocks watch list.

Disclosure: Author is long shares of GLP

Source: Global Partners: A High Dividend Stock with Big Earnings Growth