EnLink Midstream: The Poster Child Of Buying

Readers who followed my advice in April, May, and June 2020 have had the good fortune to see the shares on their dividend stocks they purchased then gain up to 300% since. And it was not just one or two dividend stocks. There are a couple of dozen dividend stocks on the Dividend Hunter recommendations list which have posted share price gains of 60% into the triple digits.

EnLink Midstream (ENLC) has been the poster child of buying when prices get “stupid cheap” and then enjoying the recovery. Last year, EnLink traded for around $1.00, with a low of $0.76 per share, for at least a month. EnLink was priced at a dollar with a $0.375 annual dividend. As I write this, less than a year after the stock price bottomed, EnLink trades for $4.71, up 370% for those subscribers buying at $1.00 per share.

Yet I am not telling my readers to sell to take those gains on their dividend stocks. I continue to recommend owning and buying shares of EnLink as part of the long-term Dividend Hunter strategy.

This is because the Dividend Hunter strategy is different. I tell subscribers that our goal is to invest in high-yield securities to build a stable and growing income stream. Market crashes, as we saw in 2020, are those “once in a decade” opportunities to buy shares of quality income investments at great prices and yields.

Of course, the challenge becomes winnowing the quality income investments from the wealth-destroying dogs.

I expect EnLink and other Dividend Hunter investments that were on sale last year to remain as long-term holdings paying great dividends. Someone who acquired EnLink shares at $1.00 now has a long-term $37% yield-on-costs.

For the last decade, I used the story of Aircastle Ltd as the lesson of how shares of quality companies should be bought during market crashes. At its bottom, in 2009, Aircastle traded for less than $3.00 per share, even though during that same year, the company generated $4.00 per share in free cash flow.

1 2
View single page >> |

Disclaimer: The information contained in this article is neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Investors Alley Corp. and its ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.