Why Boardwalk Pipeline Is Poised to Pop
Market-trouncing returns could be written in this 4-Star.
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas pipeline and storage operator Boardwalk Pipeline Partners (NYSE:BWP) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Boardwalk and see what CAPS investors are saying about the stock right now.
Boardwalk facts
|
Headquarters |
Houston, Texas |
|
Market Cap |
$6.3 billion |
|
Industry |
Oil and gas storage and transportation |
|
Trailing-12-Month Revenue |
$1.2 billion |
|
Management |
CEO Stanley Horton (since 2011) CFO Jamie Buskill (since 2005) |
|
Return on Equity (average, past 3 years) |
8% |
|
Cash / Debt |
$10.9 million / $3.2 billion |
|
Dividend Yield |
7.8% |
|
Competitors |
El Paso Energy Future Holdings Southwest Gas |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 493 members who have rated Boardwalk believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those Fools, yieldideas, tapped the stock as a particularly solid income opportunity:
[Boardwalk] offers a great [dividend yield] more than twice what the S&P 500 is paying right now. It will have more challenging time raising future distributions, but its relatively new assets are positioned to generate predictable cash flows. In my opinion the stock is not expensive, and if natural gas prices don't plummet further and/or interest rates increase significantly, then [Boardwalk] is a good addition to a diversified yield portfolio.
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