Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal producer Alliance Resource Partners L.P.
With that in mind, let's take a closer look at Alliance Resource's business and see what CAPS investors are saying about the stock right now.
Alliance Resource facts
|Headquarters (Founded)||Tulsa, Okla. (1971)|
|Market Cap||$2.25 billion|
|Industry||Coal and consumable fuels|
|Trailing-12-Month Revenue||$1.5 billion|
CEO Joseph Craft III (since 1999)
CFO Brian Cantrell (since 2005)
|Return on Capital (Average, Past 3 Years)||18.6%|
|Cash/Debt||$20.3 million / $422.5 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Just last month, KnockoutMouse tapped Alliance Resource as an attractive way to earn some income: "Strong balance sheet, free cash flow adequate to fund its dividend, and well managed debt. ... [Alliance Resource] is a good inflation fighting stock, coal may not be very politically correct but I don't see it going away any time soon."
As the coal industry's only publically traded master limited partnership (MLP), Alliance Resource is often viewed as a relatively safe way to bet on the black stuff. Not surprisingly, the stock's current dividend yield (5.4%) is substantially higher than that of coal giant rivals Arch Coal (1.4%) and Peabody (0.6%), as well as other coal plays like CONSOL (1%) and Massey Energy
CAPS member DanFPilot elaborates on the income opportunity:
The payout ratio is modest, the company is growing and they are required to pay out due to the fact that they are a MLP. With the push for electric cars, there will need to be more coal, a lot more since coal fires about fifty percent of American powerplants. ... Also it seems that investors are heading for dividend paying equities. Yields on bonds and CDs just are not very good.
What do you think about Alliance Resource, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.