Westlake Chemical Partners LP, known by the ticker symbol WLKP, is a small cap Chemicals Company in the materials business sector. This is my first report on WLKP for my Viital stock portfolio. I have not reviewed WLKP since January 19, 2021, when I reviewed it for my twentieth pick for my Vista Portfolio (my  6th of seven folios so-far).

Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. 

The company's ethylene production facilities primarily convert ethane into ethylene. It also sells ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on a spot or contract basis. 

Image Source: Pixabay

Westlake Chemical Partners GP LLC serves as the general partner of the company. The company was founded in 2014 and is headquartered in Houston, Texas.

Three key data points gauge any dividend equity or fund such as Westlake Chemical Partners LP (WLKP):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

WLKP Price

Westlake's price per share was $24.06 as of yesterday's market close. One year ago its price was $21.12 Thus, Westlake's share price rose almost 14% in the past year.

If Westlake's stock trades in the range of $20.00 to $30.00 this next year, its recent $24.06 share price might rise by $3.94 to reach $28.00 by December 17, 2022. My estimate is in line with the median annual 1yr price target from 5 brokerage analysts.

WLKP Dividends

Westlake's most recent quarterly dividend of  $0.4714 was paid out on November 29th, to shareholders of record on November 10th. That dividend, added to the previous three equates to $1.89 annually and yields 7.84% per yesterday's $24.06 closing price. 

Westlake Chemical Partners LP (WLKP) has paid quarterly dividends increasing annually since November 2014. That was 7 years in November.

WLKP Returns

Adding the $1.89 annual estimated Westlake Chemical Partners LP forward-looking dividend to my $3.94 price upside estimate shows a $5.83 potential gross gain, per share, to be reduced by any costs to trade WLKP shares.  

At yesterday's $24.08 price per share, a little over $1000 would buy 42 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.24 per share.

Subtract that maybe $0.24 brokerage cost from my estimated $5.83 gross gain per share results in a net gain of $5.59 X 42 shares = $234.78 for a 23.45% net gain on a $1,010.52  investment.

So it is that Westlake Chemical Partners LP  (WLKP)  shows a possible 23.45% net gain including a 7.84% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Westlake Chemical Partners LP  (WLKP) could generate $78.40 in cash dividends alone. Note that a single share of WLKP stock bought at yesterday's closing price was $24.06. Therefore, Vale SA's share price is over three times below the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is prime time to pick up Westlake Chemical Partners LP  (WLKP)  shares. The estimated next-year dividend from $1K invested is more than 3.25 times Westlake's single share price. Consider yourself alerted. It's a sign!  

All of the estimates above are speculation based on the past history of Westlake Chemical Partners LP (WLKP). Only time and money invested in this stock will determine its market value.