Sunoco Logistics Dividend Won't Sustain Sharp Oil Drop
Midstream master limited partnership Sunoco Logistics Partners has an attractive dividend yield but may be a dangerous trap for income-hungry investors.
Midstream master limited partnership Sunoco Logistics Partners (SXL) sports an ostensibly attractive dividend yield of 8.32%. Nevertheless, Investing Daily editor John Persinos warns that the pipeline player's high dividend yield is a dangerous trap which would snap shut if oil prices take another tumble. Persinos points out that Sunoco Logistics' dividend payout ratio, which captures the sustainability of a company's dividend, is 222%, far above the 90% ceiling investors should seek from an MLP.
