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Tuesday, April 12, 2011


I know i have asked this question before and at least so far, each answer has been another leg higher. But we are faced here with a rally that started back last September and it could be getting long in the tooth in here. MLPS seem to have hit a wall at around the 382 level. Granted a few days of selling does not a downtrend make but with rates off their recent lows, you have to wonder whether we are setting up for a selloff in prices. Top building is usually a process and not an event.

Targa Resources (TRGP) and Targa Resources Partners (NGLS) are the first to announce quarterly dividend and distribution payouts and both companies are hiking from the previous quarter. And Plains All American (PAA) boosts their payout by 3%. They also say earnings will come in on the high end of guidance. And Genesis Energy (GEL) hikes its payout by nearly 2%.
And with all the payout hikes the question is, are dividend (or distribution) growth stocks a good bet over the long haul or vastly over-rated. This Seeking Alpha piece addresses that question. Long read with lots of data to pour through but worth the time.

This morning we have stock futures down ahead of the open and energy stocks are lower as well so look for MLPS to trade lower at the open. Crude is lower but nat gas has now rallied back to unchanged after yesterday's reversal. Nat gas held 4 dollars so the base building process appears to be continuing. Rates are lower this morning as markets sell off.

I posted this last week but in case you haven't seen it...take a live look (24/7) from this camera of this nesting pair of eagles and their 3 babies. It is truly fascinating and captivating! This morning both parents were feeding the eaglets.

Yesterday was a rough day for me running back and forth from work to the emergency room where my dad was taken for heart issues. He is fine and going home today. That and a wedding in 17 days as my daughter gets married is making for a very hectic existence. Sorry for the missed monday morning post.

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