Dividend and growth in the pipelines
On Barchart Portfolio Blogs I bring to your attention stocks you might want to consider for your portfolio. DCP Midstream Partners, LP (DPM) is added to the Barchart Jim Van Meerten New High portfolio. The partnership is a midstream master limited partnership that gathers, treats, compresses, processes, transports and markets natural gas and transports and markets natural gas liquids. DCP Midstream Partners, LP is managed by its general partner, DCP Midstream GP, LLC, which is wholly owned by Duke Energy Field Services, a joint venture between Duke Energy and ConocoPhillips. It is a midstream master limited partnership formed by Duke Energy Field Services to own, operate, acquire and develop a diversified portfolio of complementary midstream assets. Supported by its relationship with Duke Energy Field Services and its parents, Duke Energy and ConocoPhillips, it intend to acquire and construct additional assets and have a management team dedicated to executing our growth strategies.
The stock hit 13 new highs in the last 20 sessions including 5 in the last 5. The price appreciation has been 14.84% in the last month and it trades at 35.09 with a 50 day moving average of 31.08.
Wall Street brokerages are very high on master limited partnerships in the energy sector right now and have 3 buy and 4 hold reports published. They estimate sales increases of 56.00% this year and 10.20% next year. Earnings are expected to increase 9.00% this year, 3.47% next year and continue for a 5 year compounded EPS growth rate of 5.00%. Growth with a 7.1% dividend!
Positive investor sentiment in this sector is confirmed by the CAPS members on Motley Fool who vote that the stock will beat the market by a vote of 152 to 11. The experienced All Stars are more confident that it will beat the market by a vote of 55 to 2.
I know that my portfolio is getting a little over weighted in the sector but we will keep tight stop losses and be prepared to bail if the price falters. I'm adding because:
1 - The stock hit new highs in 13 of the last 20 sessions including 5 in the last 5
2 - 80% Barchart short term technical buy signal confirmed by the Barchart Trend Spotter (tm)
3 - Positive investor sentiment Wall Street buy recommendations based predicted increases in sales and earnings
4 - 7.1% dividend while we wait.
Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: No positions in the stock mentioned at the time of publication