The Outsider
Long only, research analyst, dividend investing, large-cap

Is CVR Refining's 22% Yield Too Good To Be True?

CVR Refining (NYSE:CVRR) is an independent downstream energy limited partnership operating in the mid-continent region, formed by CVR Energy (NYSE:CVI) in September 2012 to own the group's refining and logistics businesses. CVR Refining went public on January 23, 2013, with its common units being listed on the New York Stock Exchange at a price of $25 per unit. CVR Energy is still the company's largest unitholder, with a stake of 73%. CVR Refining's current market capitalization is about $4.1 billion and it offers a high-dividend yield of 22.7%, which is among the highest in the stock market. This means CVR Refining may be a huge opportunity for income-investors, or a dividend trap.

Company Background

The company...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details