Westlake Chemical Partners: Premier High-Yielder Right Now, Maybe More One Day

Seeking AlphaDividend Ideas | Basic MaterialsWestlake Chemical Partners: Premier High-Yielder Right Now, Maybe More One DayNov. 25, 2020 8:17 AM ET|| About: Westlake Chemical Partners LP (WLKP), Includes: WLKby: Daniel ThurechtDaniel Thurecht Long-term horizon, Contrarian, Oil & Gas, industrialsSummaryWestlake Chemical Partners stands out on the list for Master Limited Partnerships with their rare combination of attributes.
A combination of a high 9% distribution yield, strong coverage, resilient cash flow performance, very low leverage and strong liquidity is extremely rare and very desirable.
Even though they could realistically afford a return to distribution growth, management appears to be waiting for units to better reflect their current fundamentals.
They have also indicated a willingness to pursue growth via acquisitions and organic capital expenditure, which thankfully their financial position can easily handle.
Given their continued strong performance, I believe that once again maintaining my bullish rating is appropriate.
Introduction
The list of Master Limited Partnerships at times can feel almost never-ending and whilst many have disappointing fundamentals, Westlake Chemical Partners (WLKP) stands out differently. Throughout this severe economic downturn, they have proven superior to many of their peers and have kept their high 9% distribution yield safe, as my previous article analyzed. This article provides a follow-up analysis that incorporates their subsequently released financial results as well as considering their prospects to restart their distribution growth and make future capital investments.
Executive Summary & Ratings
Since many readers are likely short on time, the table below provides a very brief executive summary and ratings for the primary criteria that was assessed. This Google Document provides a list of all my equivalent ratings as well as more information regarding my rating system. The following section... Read more

Older articles featuring WLK: