Dividend Stock Review of ETP: ENERGY TRANSFER PARTNERS L P

It’s a windy evening in Honolulu Hawaii, and I’m in a cafe with my Mom blogging a review of a potentially high dividend yielding stock ETP – Energy Transfer Partners LP...

If you are interested in Financial Freedom, you might be like me and are interested in creating more and more passive income for yourself…

…well, I’ve been investing for dividends for over 5 years now and it’s been a bit of trial and error, and also has motivated to research all of the best higher yielding stocks available…

…so let’s dive into today’s pick, ETP – Energy Transfer Partners LP!

ETP is earning 12.81% so should you invest in this company?

Read on to find out more…

Energy Transfer Partners LP (Tickler Symbol: ETP)

Let’s get straight to the point, as of today 4-11-16 ETP is yielding 12.81% on a quarterly basis, and the last dividend earnings date was on 2/16/16.

The price per share at close of trading was $32.37, and it’s lowest price in the last 52 weeks occurred on 2/9/16 at $18.62, which was 5 days after the ex-dividend date on 2/4/16.

The highest price in the last 52 weeks was $59.37 on 5/1/15, so over the last year the price has decreased by roughly 50%.

From 1997 to 2000 the price averaged at $10/share, after which it steadily increased as high as $64.79/share on 1/1/2015.

Financials for the company can be accessed here

Etrade describes ETP as follows:

“Energy Transfer Partners, L.P. is a master limited partnership. The Company’s operating segments include Intrastate Transportation and Storage segment; Interstate Transportation and Storage segment; Midstream segment; Liquids Transportation and Services segment; Investment in Sunoco Logistics segment; Retail Marketing segment and All Other segment. It is engaged in natural gas operations, including natural gas midstream and intrastate transportation and storage, and interstate natural gas transportation and storage; Liquids operations, including NGL transportation, storage and fractionation services; product and crude oil operations, including product and crude oil transportation, terminalling services and acquisition and marketing activities and retail marketing of gasoline and middle distillates. It is managed by its general partner Energy Transfer Partners GP, L.P. Its brands include Sunoco, Stripes, Aplus, Aloha Island Mart, Exxon, Valero, Mobil, Shell and Chevron, among others.”

J.P. Morgan’s Review of ETP

Per TheStreet J.P. Morgan put out the following favorable review of ETP: “Double digit distribution secure, market underappreciates ETE support. We believe ETP has outlined a clear path to funding needed through YE16, after which ETP should start to realize the benefit of the ~$10bn of projects under construction. The ~$2.2bn drop down to SUN announced at the recent Analyst Day pre-funds nearly 70% of planned 2016 equity needs, with the potential for non-core asset sales and/or IDR waivers on future equity issuance to cover the balance. ETE’s growth depends upon a strong ETP, and we believe ETE will do what it takes to defend ETP.”

I looked up information on (ETE) ENERGY TRANSFER EQUITY L P COM UT LTD PTN and here is what Etrade has to say about it:

“Energy Transfer Equity, L.P. (ETE) is a limited partnership company. The Company, directly and indirectly, owns equity interests in Energy Transfer Partners, L.P. (ETP) and Regency Energy Partners LP (Regency), both of which are master limited partnerships engaged in diversified energy-related services. Its segments include Investment in ETP, including the consolidated operations of ETP and Regency; Investment in Lake Charles LNG, including the operations of Lake Charles LNG Company, LLC (Lake Charles LNG), and Corporate and Other, including the activities of ETE. The Company’s Lake Charles LNG provides terminal services for shippers by receiving liquefied natural gas (LNG) at the facility for storage and delivering such liquefied natural gas (LNG) to shippers. It, through ETP, operates various brands, such as Sunoco, Stripes, Aplus, Aloha Island Mart, Exxon, Mobil, Valero, Shell and Chevron. In March 2015, ETE transferred its 45% interest in the Bakken Pipeline project to ETP.”

Upon further research, I found that in early April a lawsuit was filed against ETE, by it’s potential merging partner Williams Cos.  The dispute is over the offering of preferred shares of ETE to ETE’s stockholder’s, without including Williams’ stockholders.

It is unclear how to lawsuit will pan out and whether their merger will be successful.

TheStreet’s review pointed up some valid points regarding the strengths and weaknesses of ETP.

  • Net operating cash flow has significantly increased by 104.27% to $860.00 million when compared to the same quarter last year. In addition, ENERGY TRANSFER PARTNERS -LP has also vastly surpassed the industry average cash flow growth rate of -26.50%.
  • Along with the very weak revenue results, ETP underperformed when compared to the industry average of 36.8%. Since the same quarter one year prior, revenues plummeted by 55.8%. Weakness in the company’s revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock’s performance over the last year: it has tumbled by 46.65%, worse than the S&P 500’s performance. Consistent with the plunge in the stock price, the company’s earnings per share are down 77.27% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, ETP is still more expensive than most of the other companies in its industry.
  • The debt-to-equity ratio of 1.30 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, ETP maintains a poor quick ratio of 0.86, which illustrates the inability to avoid short-term cash problems.

Conclusion – Reasons I’m Not Going To Recommend Investing in ETP

After this review of the current conditions surrounding ETP, I personally would not invest in this company.

My reasons are that the litigation against it’s parent company ETE show ineffective communication between potential business partner Williams Cos.

Also, the revenues for the company dropped substantially in the past year, perhaps due to the drop in the price of gasoline.

In general, the energy market seems to be a little too uncertain for me to invest in at this point.

There could be a large shift away from fossil fuels in the near future that could almost wipe out the profits of this type of fossil fuel company.

What are your thoughts? Want to invest in ETE? Let us know by writing in a comment!
 

How To Pay Off Your Mortgage in 5-8 Years – A Review of Financial 101

Want to learn how to pay off your mortgage in 5 to 8 years?

…read this review of Financial 101

…so my husband says an administrator of one of the facilities he visits invited him to attend a financial seminar at someone’s house…

…bells are going off in my head…

Why would anyone do a financial presentation at their house?

…I asked him “Is this an MLM?”…

…my husband Jomel says “it’s a class on money and investing and it was an hour long”…

…so we all just went, and I literally just got back to write this blog about it…

…it was a company called Financial 101

…similar to Sweep Strategies, they help you learn to budget money, save, and restructure debt so that you can pay off your mortgage faster…

…then they help you invest in other properties for rental income…

Here is my honest review of Financial 101

REVIEW OF FINANCIAL 101

…so, the presentation is very informative for most people who do not understand interest rates, debt and money management…

…it discusses the advantages of paying off high interest debts as quickly as possible, to save lots of money in interest…

…and also shows people how to tap into the equity of their home to pay down the principal of their mortgages faster…

…instead of putting their money in a checking account, they put it in a line of credit and pay all of their bills from that instead…

…this saves money on interest that they would have had to pay towards their mortgage…

…they also teach how to responsibly use credit credit cards to earn points and other benefits…

…and also save even more interest on their mortgages…

PROS

Financial 101 helps people manage their money with their own coach and a structured program…

…and there are plenty of real life stories of people who took the course and it changed their lives…

…the story that I saw was from a couple that went from a $5,000/mo mortgage to now having no mortgage…

…not sure of the time frame or how much they owe on their line of credit, however, looks like they are doing better financially because the husband can build custom cars for a living instead of working a job…

…the lady who did the presentation was named Shantell, and she also had a great story of how her family went from being very poor to now traveling the world and owning her own home and car with no debt, and now owning investment properties and qualifying for Private banking…

…they have a beginner course which costs $199 which helps people get control of their spending and their cashflow, especially if they have negative cashflow (spending more than they are making)…

…then if they want to go to the next level, which is Financial 100, the $199 goes towards the cost of the 2nd course which is $1,499…

…Financial 100 teaches how to do automatic savings, and have a savings buffer…

…how to budget for future savings goals, and to be able to look at finances 3 months ahead…

…if you graduate within one year of Financial 100, they let you use the tuition to pay for Financial 101, which costs over $3,000…

…in Financial 101 you apply for the line of credit that you use as your checking account to deposit your paychecks and pay your bills…

…the advantage of using a line of credit as your checking account is that the same line of credit is used to pay down the principal of your mortgage…

…which saves money in mortgage interest…

…as the line of credit is paid down, there’s room to invest in investment properties…

…for people in Hawaii who tend to have high mortgages, and also credit card debt, this program can be very helpful in not only paying off debt, but also creating real financial wealth…

…in addition, they help people pay their tuition with the savings that they make from the saved mortgage interest…

CONS

…there aren’t that many cons that I can see with the program…

…the first that I noticed was that they talk about an emergency fund, and I think it’s wiser to save for different reasons, click here to learn more about why I would never have an emergency fund and better ways to strategically save your money

…the second is that if you already know what they are teaching, you don’t really need to take a course…

…I’m not sure if it would be cost effective if you had no mortgage or no debt and are already saving a lot of money, and already have investments making you passive income…

Conclusion

…I think for most people Financial 101 would be that financial education that we all needed to learn in school, and yet no one taught us…

…my husband and I are going to do the free assessment…

…and we get no financial benefit if you do decide to take Financial 101 courses…

…this is an unbiased 3rd party review…

… CLICK HERE to get your free assessment and check out Financial 101 for yourself!

What do you think?  Leave your review of Financial 101 in the comments below!

P.S.

I love blogging and helping others find financial freedom!

…is there something that you are passionate about, and that you could teach others?

…I suggest you consider blogging…

CLICK HERE, enter your e-mail, and watch the free video to learn more!

A Review Of Passive Income From REIT ARR

…Mey here on Monday morning listening to 6 Figure Shortcuts (which is the best course in building a 6 Figure income online EVER) and blogging about A Review Of Passive Income From REIT ARR

…so, to become financially free you need to have passive income…

…one way that my husband and I make money is that we invest in REITs (click here for an introduction to REITs), and most of our money is in one REIT in particular – ARR…

…to understand more about ARR, go ahead and click here to get an explanation of what a Ticker symbol is and how to research it on free websites

…this REIT pays a monthly dividend of about 16%…

…you might think WOW, that’s great…

…that’s why my husband and I bought so much of it…

…well, the price kept dropping and now the money that we put into it is worth half of what we invested (we kept buying as the price kept falling too)…

…and when the stock price goes down, the amount of money paid in dividends goes down as well…

…then a couple of months ago the stock did a 8 to 1 reverse split, meaning that 8 stocks were combined to make 1 stock…

…so it was about $2.80 per stock and then it became $22.40 per share…

…that’s when my husband and I stopped buying and just watched…

…reason is the stock could still fall in value, and then be reverse split again…

…so, the stock price has been stable since the reverse split, which happened back in August 2015…

…during this time, we still make a lot of money from the dividends from the shares of ARR that we already bought…

…so I decided to review where we were at…

…the fact that the value of our stock has decreased does not concern me as much as the dividend income decreasing…

…the reason we invested in ARR is for passive income…dividends…

…so I calculated the amount of dividends that we have received divided by the amount of money that we have invested and the return has come out to 9% over the last 5 years that I personally have been investing in ARR…

…now that’s still pretty good…

…so it basically went from 16% face value of dividends and became really 9%…

…now, truthfully, past results do not predict the future…

…so I don’t know if ARR is going to go down or up in the future…

…they say what goes up must go down, well it hasn’t gone up in the last 5 years, and it’s just been steady for the last 5 months…

…and I honestly started thinking that it might be a stock that perpetually goes down, and then reverse splits and then goes down again…

…I don’t know…

…I will say this, I’m ok with the money that I have invested in ARR so far…

…afterall, last year my husband and I claimed about $5,000 in passive income…

…which was mostly from ARR…

…and that’s pretty good…

…if we moved to Thailand or Taiwan we would already by free…

…even though it used to be more than double…

…that’s still a lot of passive income for the amount that we invested…

…not sure if I will buy more…

…probably will invest in a more stable ARR like GOOD…

…even though it gives a smaller return of about 8%…

…I hope that gives you a good idea of the risks involved in buying ARR…

…my brother actually told me that the higher the return, the more risky (usually) is the investment…

…let me know what you think of this review in the comments below!

P.S.

…I love blogging about financial freedom and sharing the knowledge that I have gained on saving, investing and mindset about financial freedom…

…I started blogging because I heard it could make you a lot of money as well…

…and eventually that money would become passive income…

…or at least, highly leveraged income…

…I have come to find that there is a system you need in place to make large amounts of money blogging…

…if you are interested in a long term strategy of passive income creation that also lets you express your creativity…

…then CLICK HERE, watch the free video and get started =)

Can Playing Robert Kiyosaki’s Cash Flow Game Make You Financially Free?

…can a playing a game make you financially free?

…well, Cash Flow is a game that was recommended to me by one of my financially free friends (became free at 37)…

…he told me to play it every week until I could finish the game in an hour or less…

…truth be told, when he played with us he got out in 20 minutes…

  1. So What is the Cash Flow Game?

    Cash Flow is a board game invented by Robert Kiyosaki’s Rich Dad Poor Dad company…

    …the goal of the game is to:
    1) Get out of the Rat Race
    2) Become Wealthy by attaining $50,000/monthly passive income or Obtaining your dream

    …every player has a cash flow work sheet…

    …in the beginning of the game, they pick a card and that gives them their occupation, salary, taxes, mortgage, debt payments, value of any assets and cash in the bank…

    …all of these are listed on the cash flow work sheet under assets and liabilities…

    …the expenses are added up and subtracted from the income giving a cash flow number…

    …everytime you pass the payday square on the gameboard, you pay yourself your cashflow (income – expenses)…

    …everyone has a game piece which is a different colored rat…

    …you go around a circle in the middle of the board, rolling dice…

    …you land on either a payday square, small opportunity, large opportunity, Market or DooDads…and there are also special squares for charity and if things really go bad…

    …small opportunities give you the options to buy houses or condos, or start multi level marketing companies, or buy shares of stocks, or buy CDs…

    …large opportunities give you the option to buy larger multi unit properties, or other more expensive business opportunities…

    …market brings in factors like how the stock market is doing, or how property values are doing…

    …Doodads are cards where you buy things…

    …the point of this part of the game, the rat race, is to get out…

    … in order to get out, you need your PASSIVE INCOME to be GREATER THAN your EXPENSES…

    …so every turn you have, you track it…

    …when you finally get out of the rat race, then you go into the outside of the board…

    …everyone at the start of the game already chose one of the dream squares to be their dream…

    …so you roll dice and and you buy bigger opportunities and see if you can land on your dream (and have enough cash to afford it)…

    hack image

  2. Is Cash Flow Fun?

    …YES…

    …it’s a board game that you can play with your friends…

    …it’s fun to get out of the rat race and to become wealthy…

    …landing on your dream is especially fun…

    …some people who have mental blocks to math may find it frustrating until they decide to just do the math (which is not hard, just adding and subtracting)…

    …it is told that we play the game the way we play your life, so if you are pretty poor at your personal finances, it may be harder in the beginning to get out of the rat race…

    …or you may want to give up after the first hour if you don’t feel like you are making progress…

    …the longest it took me to win the game was about 2 and 1/2 hours…

    …in my house we play until everyone wins…

    …so it really depends on how you play!

  3. Does Playing The Game Make You Financially Free?

    …well, according to my friend, if you play every week until you get out in under an hour, then you will definitely be more mentally prepared to become free…

    …you see, after playing many times, you automatically start calculating cash flow in your own life…

    …and you pay more attention to PASSIVE INCOME, which is something that I never looked at before in my own life…

    …it’s not how much you make either, it’s how you manage it to get passive income…

    …in the game, the janitor almost always get out of the rat race first…

…have you played Cash Flow?

…What do you think of it?

…Please comment below…