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DCP Midstream Partners LP (DPM)-High Dividend Yield, Low Valuation

|Includes:DCP Midstream Partners, LP (DPM)

 DCP Midstream Partners LP, (NYSE:DPM), is an oil & gas pipeline company with a high dividend yield, (7.99%), in our High Dividend Stocks by Sector tables.  It also appears to be undervalued, and has several above-average metrics, when compared to its peers, in our Industry Comparison Table.

DPM, which closed at $30.04 Wednesday, recently declared a $.60/share dividend, payable to shareholders of record Feb. 5th, 2010.
DPM also has covered call and put options available with double-digit annualized yields:
COVERED CALL: July 2010 $30.00 call is currently bid at $1.75, a 13% annualized yield. Covered call sellers would also collect $.60/share in dividends, for an additional 4.47% annualized yield.

CASH-SECURED PUT: July 2010 $30.00 put is currently bid at $2.35, a 17.5% annualized yield, (based on a 100% cash reserve).

 Disclosure: No positions in DPM shares.

 Disclaimer: This article is written for informational purposes only.

Disclosure: No positions
Stocks: DPM