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
||Tulsa, Okla. (1971)
||Coal and consumable fuels
||CEO Joseph Craft, III (since 1999)
CFO Brian Cantrell (since 2005)
|Return on Capital (average, past 3 years)
||$189.0 million / $707.0 million
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.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.