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
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|
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.
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.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Alliance Resource. Try any of our Foolish newsletter services free for 30 days.