The Dynamic Dividend

BreitBurn Ups Distribution Again, Pushing Yield Near 10%

BreitBurn Energy Partners (BBEP) declared a quarterly distribution of $0.435 per unit this morning, raising its payout for the sixth consecutive quarter.

BreitBurn’s new distribution rate is 3% better than its payout from last quarter. The independent oil and gas partnership has now raised its distribution in each of the six quarters since reinstating its payout last year, for a total increase of 16%. The new quarterly rate still sits below its 2008-2009 peak of $0.52 per share.

BBEP closed at $17.86 on Thursday, where it now yields 9.74%.

Investors trying to lock in a 10% yield from BreitBurn should feel comfortable pulling the trigger at this level. Buyers at Thursday’s closing price will be sitting on a yield-on-cost of 10.03% should the company raise its payout by another 3% next quarter.