EnLink Midstream LLC (ENLC) Update - Aug 18

[dan_s]

I have decided to drop ENLC from our High Yield Income Portfolio.

Why?
> Q2 results were fine, but I think we can do better than 4.1% annualized yield.
> ENLC is very low risk, but I don't see the same level of DCF growth as the other portfolio companies.

For A+ safety move to OKE which should be increasing dividends soon.
For A safety and higher yield move to PAGP with ~8% yield
Antero Midstream (AM) is smaller, but their relationship with Antero Resources (AR) adds a lot of safety and over 9% annualized yield

With a bit more risk and lot higher dividend yield, take a look at our five minerals/royalties companies (BSM, MNRL, KRP, STR and VNOM). BSM is the only MLP in the portfolio.

[geraldlong]

Any thoughts on adding Energy Transfer?

[dan_s]

I am sure that Energy Transfer is a great company, but I'm really not an expert on midstream companies. It takes me longer to get comfortable with them.

At this point in time, I need to finish updating the Sweet 16 profiles and the Small-Caps come next.

I do feel very good about all three of our model portfolios and I'm personally moving more of my own portfolio into the High Yield Dividend Companies. Seeing those big dividends post your account is nice.