AMZA ETF - 18% Yield

Discussion in 'ETFs' started by bigspeculate, Feb 13, 2017.

  1. Bob111

    Bob111

    what about it? i'm holding bunch of MLP etf's since 2016/ AMZA included.
     
  2. Bob111

    Bob111

    i'm holding CEFL,BDCL, MORL too. :)
    feel free to call me crazy
     
  3. Held it for a while. MLPs are better owned in CEFs to avoid tax paperwork. AMZA Div is 4% higher today than back in early 2015 when shares sold at twice today's price.

    Half of AMZA-held MLP pipeline, midstream, storage, processing, etc infrastructure DID NOT disappear from the planet in May-Dec of last year as the share price implies.

    AMZA holds reorganized Sunoco, their partner companies and a good bunch of other energy MLPs with deep infrastructure and solid cash flow.

    Particularly like the take or pay contracts a lot of the pipes can command. Fairly stable. Almost zero credit risk with their customers. Significantly less commodity risk than mkt sentiment imputes.

    Energy CRFs have been a bit beat up unnecessarily with the drop in oil, but they have recovered a bit. I also like CEN, KYN. Stable too, maybe with a smidge less room to run than AMZA now, but nice distributions.

    Just picked up some SSW yesterday. It's a similar, undervalued high div payer (tad more risk) that has been far too oversold when you look at its assets and div stream (even if they do a 1/2 div cut). Might have pbms down the road, but probably has min $4-$6 upside in the short run especially if we don't see the div cut in Feb. Maybe we will see SSW AT 2X or 3X in 24-36 months ... if the pols don't drive us off the road with their foot on the gas.

    Best regards,
    T200
     
  4. Bob111

    Bob111

    ---MLPs are better owned in CEFs to avoid tax paperwork.---exactly. plus-nice, regular div's that will give you some cushion in case of new severe downtrend in oil. which is possible,but unlikely with current administration in DC.
     
  5. Was AMZA's dividend steady during crude oil's implosion? Is it expected to remain steady?
     
  6. The div actually went up as oil took the whack and is now stable. I understand they have a stable payout fund mgmt MO like a number of CEFs. Essentially return of capital makes up any income shortfall. They haven't had to tap capital since Oct2015.

    Check the screen scrape or check the "latest distributions" data at Morningstar. (Note: Several qtrs have two line entries).

    http://beta.morningstar.com/etfs/arcx/amza/quote.html

    Another way to look at it is AMZA returned ~$1.60 of capital and the laptop lemmings's sold a $24 CEF down to around $7 at the worst point. Thanks Guys!

    I am good with AMZA.

    Best regards,
    T200

    Div Def.jpg
     
    Last edited: Feb 14, 2017
  7. I like it for what it is. Thanks for the heads up!

    Surf
     
  8. sooka

    sooka

    Can someone explain to me how the ETF is yielding 18% when the underlying equities it holds are yielding 10% or less? Maybe i'm missing something obvious, sorry if that is the case.
     
  9. Read through the seekingalpha post and comments below it.
     
    #10     Feb 15, 2017