Superior Plus Corp.: This Growing Energy Infrastructure Firm Is Yielding 7%

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The Affluent Tortoise
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Summary

  • Collect a sustainable 7% yield from a firm with rapidly growing EBITDA.
  • With a capital allocation model built for pursuing acquisitions, Superior is capturing market share in a fractured industry.
  • The company has an impressive history of improving EBITDA by at least 25% on companies it has acquired by realizing synergies.
  • As Superior digests some of its recent transactions, unlocking synergies in 2023 should be a tailwind for the company.
  • Brookfield Asset Management is among Superior’s largest shareholders, opening the possibility to take the company private.

Large Liquid Propane LPG Tanks

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Author’s Note: All funds in Canadian currency unless otherwise noted.

Investment Thesis

When you think about propane distribution, you may conjure up images of the Fox TV cartoon “King of the Hill”. Instead, think

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I am a value-oriented investor who seeks out high-quality companies with long histories of dividend growth. I believe that patient investors who build a core portfolio of dividend paying equities can achieve their retirement goals without taking on unnecessary risk. Dividend growth profiles are the best indicators of management's commitment to returning cash to shareholders. Dividend growth investing involves identifying quality companies with competitive advantages that provide visibility towards future cash flow growth. Warren Buffet once wrote "If you don't find a way to make money while you rest, you will work until you die". Fundamental analysis and patience are the tools I use to build a portfolio of equities that will enable my very comfortable retirement. Join me in exploring value and growth-at-a-reasonable-price opportunities and in building your own income-producing portfolio of dividend stocks. I am an investor with over 20 year of experience in the market. I hold a B.Mgt and an MBA where I enjoyed studying both corporate and personal finance.

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