The Dynamic Dividend

Rhino Resource Partners: A Hidden 10% Yield

Rhino Resource Partners LP (RNO) offered some interesting insight into the future of its distribution when the coal producer reported its second quarter results today.

Rhino, which went public last fall and has paid a distribution of $0.455 per unit each quarter this year, said management expects to give its payout a 5.5% boost to $0.48 per unit next quarter.

You won’t see that reflected under “Dividend” or “Yield” when you pull up Rhino on any of the major finance sites until the partnership officially declares an increased distribution. Rhino declared its most recent payout just two weeks ago, so there’s likely a window of at least two months before its next payout is announced.

RNO is trading at $19.12, where its current distribution rate produces a 9.52% yield and the anticipated distribution rate for next quarter produces a 10.04% yield.