DCP Midstream: It's Sunny In Denver

Aug. 10, 2022 4:37 AM ETPhillips 66 (PSX) StockDCP.PB, DCP.PR.C, PSX6 Comments
The Value Portfolio
Investing Group Leader

Summary

  • DCP Midstream is continuing to pay a more than 5% dividend, one that it can comfortably afford.
  • At the same time, the company is continuing to opportunistically invest in growth capital, making opportunistic growth investments.
  • The company has high single-digit yields not counting how it uses its massive amount of additional FCF.
  • The company's debt is manageable, but we'd like to see continued paydown and strong cash flow.
  • Looking for higher risk/reward options trading ideas? I offer this and much more at my exclusive investing ideas service, The Retirement Forum. Learn More »

Waterfalls In South Iceland

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DCP Midstream (DCP), based out of Denver headquarters, has become a ten-bagger since we recommended it at less than $4/share in the depths of the COVID-19 induced sell off. Since then, the company has recovered substantially, and in our view

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This article was written by

The Value Portfolio
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The Value Portfolio specializes in building retirement portfolios and utilizes a fact-based research strategy to identify investments. This includes extensive readings of 10Ks, analyst commentary, market reports, and investor presentations. He invests real money in the stocks he recommends.

He is the leader of the investing group The Retirement Forum with features including: model portfolios, macro overviews, in-depth company analysis and retirement planning information. Learn more.

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.

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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