The Dynamic Dividend

BreitBurn Lifts Yield Over 9% With Latest Distribution Hike

BreitBurn Energy Partners (BBEP) declared a quarterly distribution of $0.45 per unit this morning, raising its payout for the seventh consecutive quarter.

BreitBurn’s new distribution rate is 3.5% better than its prior payout. The independent oil and gas partnership has now raised its distribution in each of the seven quarters since reinstating its payout last year, growing its payout by 20% along the way. The new quarterly rate still sits below its 2008-2009 peak of $0.52 per share.

BBEP is currently trading at $19.82, where it now features a 9.08% yield.

Related: When BreitBurn raised its payout with its shares trading at $17.86 back in October, I advised investors looking to lock in a 10% yield from BreitBurn to go ahead and pull the trigger, as a move like today’s would push their yield-on-cost over the 10% threshold. That did turn out to be case: Buyers at the aforementioned level are now sitting on a 10.08% yield-on-cost.