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The Best 10% Yield Stock for Growth and Income

The Best 10% Yield Stock for Growth and Income
May 02
12:15 2017

(IA) – Make sure you look at this stock because it’s not often that you come across a high-yield stock that’s also in a growth industry. With such a great dividend and some strong growth drivers on the horizon, this stock deserves a spot in your income portfolio.

A great failing of the modern, trader-driven stock market is the failure of many investors to differentiate between industry sub-sectors and individual companies. Examples are the energy sector, which is driven by the price of crude oil and the shipping sector which is driven by whatever sector is losing the most money.

This large view negative outlook have produced a little-known stock with a 10% yield which is poised to grow at the conjunction of these two sectors.

Historically, natural gas has been consumed within the region where it was produced. But, recent industrial developments now allow massive natural gas producers such as the US and Australia to now export LNG to countries around the world.

The development of natural gas liquification facilities take years of permitting and construction. The first operational LNG production plant shipped its first cargo in February 2016. There are another half dozen or so plants in various stages of completion in the U.S. Globally; analysts estimate some 125 million metric tons of new production capacity is currently under construction. This would be an almost 50% increase in capacity.

SEE ALSO: The Safe 12% Yield Dividend Stock for Every Investor

LNG is transported using specialized ships, that can keep natural gas in its liquid form. At the point of delivery, the LNG needs to be regasified so it can be used in the local economy. Floating storage and regasification units (FSRUs) are a type of ship that can be moved to wherever LNG is contracted to be shipped.

In 2015 and 2016, the number of LNG ships coming on to the market exceeded the amount of LNG to be transported. The result was a slashing of the daily rates for LNG transport ships. As we move into the latter part of 2017 and 2018, new LNG production coming on line will flip that equation, and shipping experts predict a shortage of LNG transport ships for the next several years.

Golar LNG Partners LP (Nasdaq:GMLP) owns seven FSRUs and four LNG carriers. The vessels are leased on long-term contracts. The current average remaining term is five years. GMLP has a steady free cash flow model based on its relationship with Golar LNG Limited (Nasdaq:GLNG).

Think of GLNG as a development company, acquiring LNG vessels, new or used, and then marketing the vessels to put them on long-term lease contracts. Once a newly acquired vessel is leased, all or a portion of the ownership of that vessel is sold to GMLP.

GLNG earns a profit on the capital invested and GMLP acquires an asset with a future stream of lease payments. GLNG pays a minimal dividend and GMLP pays a significant and growing dividend. Since its spin-off IPO, the GMLP quarterly distribution has increased from $0.40 per share up to the current $0.5775 per share. 2016 free cash flow was 1.3 times the distributions paid. This a very acceptable level of coverage for a publicly traded limited partnership.

Golar LNG Partners does have leases on two LNG carriers and one FSRU expiring near the end of 2017. The company is actively marketing the vessels for new contracts. The timing of the lease expirations may end up as positives with the demand for LNG transport just starting to exceed available carrier capacity.

This would be a big positive for GMLP and its future cash flow growth possibilities. For the interim, GMLP represents a great dividend stock for way above-average income and future growth opportunities.

And with a $0.5775 quarterly dividend, owning 1,000 shares of GMLP stock will kick off a nice income stream of $577.50 every three months. That’s extra income you can use to pay your bills, go out to a nice dinner, and even help pay for that next vacation. And that’s all without having to sell a share!

That’s just one reason that every investor close to retirement or well into retirement needs to own dividend stocks with secure and growing cash flows like GMLP.

Owning stocks like these can help you to stop worrying about if you’re earning enough money to last. Instead, you earn consistent returns, paid in the form of cash. It’s so easy, all you have to do is buy shares of stocks that have secure dividend payments and watch as they deposit money into your brokerage account multiple times a month.

Right now, there are over 20 high-yield stocks just like GMLP that you can choose from available through my Monthly Dividend Paycheck Calendar, a system for generating a recurring monthly income stream from the market’s most stable high-yield stocks.

The Monthly Dividend Paycheck Calendar is set up to make sure you receive a minimum of 6 paychecks every month and in some months up to 14 paychecks from reliable high-yield stocks built to last a lifetime.

This unique tool will set you up to receive a more predictable dividend stock income stream that you can count on every month instead of just once a quarter like most other investors. Joining my calendar by Thursday, May 11th will give you the opportunity to claim an extra $2,846.70 in dividend payouts by June 15th.

The Calendar tells you when you need to own the stock, when to expect your next payout, and how much you can make from these low-risk, buy and hold stocks paying upwards of 12%, 13%, even 18%. I’ve done all the research and hard work, you just have to pick the stocks and how much you want to get paid.

The next critical date is Thursday, May 11th (it’s closer than you think), so you’ll want to take action before that date to make sure you don’t miss out. This time, we’re gearing up for an extra $2,846.70 in payouts by June 15th, but only if you’re on the list before May 11th. Click here to find out more about this unique, easy way of collecting monthly dividends.

A Top 10% Yield Stock to Own for Growth and Income

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