Held it for a while. MLPs are better owned in CEFs to avoid tax paperwork. AMZA Div is 4% higher today than back in early 2015 when shares sold at twice today's price.
Half of AMZA-held MLP pipeline, midstream, storage, processing, etc infrastructure DID NOT disappear from the planet in May-Dec of last year as the share price implies.
AMZA holds reorganized Sunoco, their partner companies and a good bunch of other energy MLPs with deep infrastructure and solid cash flow.
Particularly like the take or pay contracts a lot of the pipes can command. Fairly stable. Almost zero credit risk with their customers. Significantly less commodity risk than mkt sentiment imputes.
Energy CRFs have been a bit beat up unnecessarily with the drop in oil, but they have recovered a bit. I also like CEN, KYN. Stable too, maybe with a smidge less room to run than AMZA now, but nice distributions.
Just picked up some SSW yesterday. It's a similar, undervalued high div payer (tad more risk) that has been far too oversold when you look at its assets and div stream (even if they do a 1/2 div cut). Might have pbms down the road, but probably has min $4-$6 upside in the short run especially if we don't see the div cut in Feb. Maybe we will see SSW AT 2X or 3X in 24-36 months ... if the pols don't drive us off the road with their foot on the gas.
Best regards,
T200
