Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal producer Alliance Resource Partners LP (Nasdaq: ARLP ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Alliance Resource and see what CAPS investors are saying about the stock right now.
Alliance Resource facts
| Headquarters (founded) |
Tulsa, Okla. (1971) |
| Market Cap |
$2.2 billion |
| Industry |
Coal and consumable fuels |
| Trailing-12-Month Revenue |
$1.9 billion |
| Management |
CEO Joseph Craft, III (since 1999)
CFO Brian Cantrell (since 2005) |
| Return on Capital (average, past 3 years) |
19.9% |
| Cash/Debt |
$189.0 million / $707.0 million |
| Dividend Yield |
7% |
| Competitors |
Arch Coal
CONSOL Energy
Peabody Energy |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 727 members who have rated Alliance Resource believe the stock will outperform the S&P 500 going forward.
Earlier this week, one of those bulls, mobiusstrip, tapped Alliance Resource as a solid income opportunity:
Gamble on coal. I can't really speak for how coal is going to do as a sector -- certainly it's been free falling the last six months. However, [Alliance Resource] is offering a steadily increasing dividend which is now yielding 7%. Income has been rising, and the payout ratio is [50%]. ... If the sector does recover, [Alliance Resource] should reap serious benefits. Meanwhile, the yield should provide downward cover in the near term.
If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Alliance Resource may not be your top choice.
If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
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