DCP Midstream: Don't Forget The Preferreds

Summary

  • Market sell-offs open up opportunities not only in stocks but bonds and preferreds as well.
  • DCP Midstream is one of the few remaining midstream firms with publicly-traded preferreds. They are likely to be retired soon.
  • Buying at a discount to par allows investors to pick up a high yield coupon plus being made whole when they are retired, likely inside the next two years.
  • This idea was discussed in more depth with members of my private investing community, Energy Investing Authority. Learn More »

North American Oil

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The market sell-off has been widespread and aggressive, including within the energy sector. It's an interesting dynamic, as energy in particular retains many of the strong fundamentals it had just months ago - and in some cases better. Most of the

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This article was written by

19.66K Followers

Michael Boyd is an energy specialist with a decade of experience in both the investment advisory and investment banking spaces, with stints in portfolio management, residential mortgage-backed securities, derivatives, and internal audit at various firms. Today, he is a full-time investor and "independent analyst for hire.”

Michael leads the Investing Group Energy Investing Authority. The service focuses on finding total return opportunities within the energy sector, ranging from upstream producers to pipelines to refineries. Features include: model portfolios, real time trade alerts, high quality research, and an active and vibrant chatroom of professional investors. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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