TEPPCO Partners, L.P., (TPP) through its subsidiaries, operates common carrier pipelines of refined products and liquefied petroleum gases in the United States. The company operates in four segments: Downstream, Upstream, Midstream, and Marine Transportation.
Teppco is part of the dividend achievers index. It has been increasing its dividends for the past 18 consecutive years. Over the past 10 years the company has delivered an average total return of 13.40 % annually to its shareholders.
At the same time the company has managed to deliver a 5.50 % average annual increase in its EPS.
The ROE fluctuated greatly, rising as high as 31% in 1999 then falling to as low as 11% in 2003, before settling at 22% in 2007.shares (Adjusted for a 2:1 stock split in August 2003). Your first quarterly check would have been $1888 in January 1998. If you kept reinvesting the dividends though instead of spending them, your quarterly payment would have risen to $6253 by October 2007. For a period of 10 years, your quarterly dividend has increased by 63.50 %. If you reinvested it though, your quarterly dividend would have increased by 221.20%. I think that TPP is attractively valued at its current price/earnings multiple. The company boasts an above average dividend yield.
Disclosure: Author owns TPP.