keithfeather

Terra Nitrogen Co.: Intriguing Fertilizer Manufacturer

You have missed the boat, my friend. To correctly value this company on dividends, you must read the covenants of the LP. The reason the payout to unitholders is so high is that there is a shortfall of previous payouts, noted during the low payouts on your chart. Once that shortfall has been paid back to unitholders, (about $6 more) then a sliding scale of distributions to unitholders starts. What appears to be a 8% dividend is likely to be 4% in July, unless the profit margin falls, in which case it is less. Invest your time before your money.