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USD Partners: 7% Dividend With Upside Potential

Nov. 01, 2021 2:49 AM ETUSD Partners LP (USDP)30 Comments
Cappuccino Finance profile picture
Cappuccino Finance
2.94K Followers

Summary

  • USD's reported income loss last year was only on paper, due to an asset write-down.
  • Their cash from operations remained in line with its pre-pandemic level and is improving this year.
  • Rail transportation will remain important into the foreseeable future, due to its convenience, reliability, and speed.
  • Given the improving economic outlook and increasing transportation costs, I expect USDP's revenue and profit to increase. A dividend increase will follow.
  • I expect 20-40% upside with 7% dividend along with it.

Railroad locomotive at dusk

kojihirano/iStock via Getty Images

Investment Thesis

USD Partners (NYSE:USDP) is a fee-based partnership that acquires, develops, and operates midstream infrastructure and logistics for crude oil, biofuels, and other energy commodities. I believe that USDP presents a great investment opportunity for an investor seeking a

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This article was written by

Cappuccino Finance profile picture
2.94K Followers
Visit me at Cappuccino Finance, I share my top picks (Value, Growth, Dividend & Growth), market outlook, and interesting ideas from super investors, based on my 12 years of experience and knowledge in stock investment and in real estate. I, Justin J. Lee, believe in fundamental analysis and disciplined market research. I have strong quant background with a Ph.D. (University of California, Santa Barbara) in model predictive control and an MBA (Jones School of Business, Rice University). My primary focus is to identify 1) small cap companies with strong fundamentals and growth potential, 2) large cap companies going through temporary set-backs, and 3) stable companies with solid dividend yields and growth potential.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of USDP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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