Selling coal but sticking with resources
Could natural-resource stocks soon be falling out of favor?
My choice was between selling this master limited partnership or Penn Virginia Resources (PVR), and I decided to stick with Penn Virginia because the company's gas distribution, coal-bed methane and timber assets give it a more diversified blend of natural-resources businesses than Natural Resource Partners.
Part of the decision is company-specific, though. The company has seen debt rise in the third quarter. That, plus coal volumes that, in the third quarter were down 28% from the third quarter of 2008, will make it hard for the company to increase distributions by more than a few cents a unit in 2010.
I'm selling these units out of my Dividend Income Portfolio with a 60% drop in price since I purchased them on September 6, 2005, but with a total loss, including $1,553 in dividends, of 44%.
The company paid its third-quarter dividend on Nov. 13.
Jim Jubak plans to sell his units of Natural Resource Partners three days after this column is posted.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
These companies won't soar like other plays in the sector, but they make for great income sources.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.