DCP Midstream Remains An Interesting Investment

Summary

• DCP Midstream has gone from a company once at risk of bankruptcy to having one of the strongest midstream asset positions.
• The company has a strong dividend yield of more than 4%, which it has guided towards increasing in the 2nd half of the year.
• The company can continue to rapidly pay down its debt, saving on interest expenses, and leaving more cash flow for other uses.
• The company's significant asset spare capacity means the ability for continued cash flow growth without additional cost.
• We expect the company to be able to continue generating double-digit overall shareholder returns.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of DCP 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.