NuStar GP Holdings, LLC (NYSE:NSH)

low PE and great dividend

babo

An increasing dividend, and a solid company. Nice yield at this price.

Inside buying - September 2011

Its all about the dividend baby!!!

0.5

If you combine appreciation anad income, the stock will outperform all of the broader markets. Excellent management, an excellent hedge against downturns.

Pipeline to the future.

Dividends

Yes, I'm betting on pipelines.

Despite high prices and new attention on alternate energy sources, the high demand for petroleum products will continue for years. You gotta store those products somewhere, and you have to move them along the processing and delivery pipelines (pun unintentional) somehow.

Pipeline and storage company for oil and gas; great asphalt refinery acquisition; good yield now but strong yield growth in the future

Five-star pick trading at 53% of fair value ($47).

This has been a good CAPS performer for me, but I'm not particularly fond of how this general partner is setup. I have a lengthy blog post about distribution growth at NSH.

VLO and NSH GOOOOOOOD!

Dividend Yield > 2%
Return on Equity > 5%
Positive Earnings Surpris in the past 90 days
Did not lag the S&P in the past 52 weeks and the past 13 weeks

Skim the cream off the top. NuStar Holding is papa bear to NuStar.

Good solid company great leader
ship.

Valero GP Holdings is the general partner of Valero L.P., which through its subsidiaries, operates an independent terminal and petroleum liquids pipeline systems in the United States. The operation spans 9,303 miles of crude and refined product pipeline, with a storage capacity of over 80 million barrels. Valero GP also holds an incentive benefits right as well as 21.4% of limited partner units. The Company's aggregate ownership interests in Valero L.P. consist of the 2% general partner interest in Valero L.P., which the Company holds through its 100% ownership interest in Riverwalk Logistics. Its only source of revenue is the distributions received from the underlying business of Valero L.P.

The oil and gas industry is again starting to witness a strong performance, the resurfaced residential heating needs and higher industrial usage is driving the demand upwards. Excluding the demand of inflation the world energy usage is growing at 2% per year. This is aiding pipeline operators like Valero L.P. to generate robust cash flows, thus creating large funds for dividend distribution. The Master Limited Partnerships (MPL) like Valero GP, benefits investors in keeping the tax rates minimal and avoid double taxation.

In 2006, Valero GP has witnessed strong performance as higher cash distribution led to revenues upsurge in mid teens, while reduced interest expenses, resulted in income climbing by over 50%. Looking ahead, the recently hiked cash distribution rates by 7%, from $0.855 to $0.915, will work immensely in Valero G.P’s favor and have a positive impact on company’s inflows. Moreover, the outlook of the underlying company looks strong as company will see a greater impact of its Kaneb acquisition due to operating synergies and with the additional capital expenditure of $105 million, the company appears set to cater to the growing market, making Valero GP a good investment for the coming year.