It's not very often that you come across a company like Calumet Specialty Products Partners (NASDAQ:CLMT), whose dividend yields 10.7%, and whenever you do, there is a certain amount of skepticism whether that kind of yield is a fluke. What is surprising, though, is Calumet's peers Northern Tier Energy (NYSE: NTI) and CVR Refiners (NYSE:CVRR) have pretty spectacular dividends yields of 6.1% and 7.9%, respectively.
Why do all three of these companies have such spectacular dividend payments despite their smaller size compared to industry leaders like Valero or Phillips 66? First, they are all master limited partnerships, which pay out all distributable free cash flow to shareholders, but that isn't the only reason. Tune in to the video to find out why Northern Tier and CVR are very unique MLPs and whether all three of these companies can maintain these massive dividend payments.