Every well balanced portfolio should hold a few dividend paying stocks. Here are two high income-generating stocks to take a look at. NuStar Energy (NYSE: NS) and Suburban Propane Partners (NYSE: SPH) are two quality dividend paying stocks that would be a good addition to a long-term investors portfolio.
NuStar Energy (NYSE: NS) is currently yielding 7.6%. NuStar Energy L.P. engages in the storage, and transportation of petroleum products in the United States, the Netherland Antilles, Canada, Mexico, the Netherlands and the United Kingdom. It operations through the three segments: Storage, Transportation, and Asphalt and Fuels Marketing. The Storage segment operates terminal facilities that provide storage and handling services on a fee basis for petroleum products, specialty chemicals, crude oil, and other liquids; and crude oil storage tanks used to store and deliver crude oil. In addition, its terminals provide tug assistance, line handling, launch service, emergency response, and other ship services. The Transportation segment transports refined petroleum products and crude oil. It operates refined product pipelines in Texas, Oklahoma, Colorado, New Mexico, Kansas, Nebraska, Iowa, South Dakota, North Dakota and Minnesota.
NuStar has recently acquired an asphalt refining and terminal facilities, a business that should start to take off once the government supported highway construction projects kick in at full speed. The paving of US highways should drive the dividend yield of NuStar Energy.
Another income-generating stock to take a look at is propane distributor Suburban Propane Partners (NYSE: SPH). Suburban Propane Partners is currently yielding 7.7%, which is a nice income stream in an uncertain economic environment.
Suburban Propane Partners, L.P. and its subsidiaries engage in the distribution of propane, fuel oil, kerosene, diesel fuel, gasoline, and refined fuels, as well as marketing of natural gas and electricity in deregulated markets. As of September 27, 2008, it served approximately 900,000 active residential, commercial, industrial, and agricultural customers through approximately 300 locations in 30 states located primarily in the east and west coast regions of the United States, including Alaska. The company also sells, installs, and services various whole-house heating products, air cleaners, humidifiers, de-humidifiers, hearth products, and space heaters to the customers of its propane, fuel oil, natural gas, and electricity products, as well as offers services, such as duct cleaning, air balancing, and energy audits.
Suburban Propane Partners (NYSE: SPH) today will close below the 20 day EMA for the second consecutive day since March. This should lead to some additional weakness in SPH which is currently trading at $41.10. There is a confluence of support sitting below at $40. A 38.2% Fibonacci retracement comes in at $39.95, this is the retracement of the recent high of $42.98 in June to the low made on March 27th at $35, comes in at $39.95 and the rising 50 day EMA is at $40.10. A good risk reward entry into SPH is just above $40. And you can use the rising 200 day EMA to stop out (two consecutive closes below the 200 EMA), currently at $36.50.
NuStar Energy (NYSE: NS) today will also close below the 20 day EMA for the second consecutive day for the first time since March. NS is currently trading at $53.25 which is right below a 50% Fibonacci retracement of the June high to the May low, which is at $53.50 and just above a 61.8% Fibonacci retracement of the June high to the May low, which sits just below the current trading levels at $52.50. There is additional technical support for NS just below at $51.75 were the rising 50 day EMA comes in. A good risk reward into NS is right at the current levels between $53.50 and 52.50. And you can use the 50 day EMA as a very conservative stop out level (two consecutive closes below the 50 day EMA).
Note: I do not own SPH or NS
