NBLX may be too cheap to ignore with 50% dividend yield

13. März 2020

Noble Midstream Partners has been finding some support in this area as its dividend yield reached 50%. This morning it also has a tailwind from geopolitical conflict in the Middle East that may pressure oil prices in an upward direction in coming months (although of course coronavirus puts price pressure in the opposite direction). Noble also released a press release this morning that offers some reassurance about their financial health. They're reducing their capital expenditures by about $75 million in order to offset lower revenues, and they say they've got more room to cut if necessary. "Noble Midstream anticipates the additional capital savings will essentially offset the cash flow loss from reduced activity." Even if Noble ends up suspending its dividend for the next couple years, this could still be a great long-term buy for a retirement account where you plan to hold it for 30 years.

25. März 2020

Anmerkung

NBLX just announced that it has reduced its dividend yield to about 6% of the current price. This is quite a bit better than the all-out suspension I feared we would see from NBLX. I will probably add to my position on any dips.