Get in on this stock's nonaction

No one buys Suburban Propane to shoot the lights out, but the stock quietly grinds out nice gains without much risk.

By Jim Cramer Oct 22, 2010 8:33AM

jim cramerBy Jim Cramer, TheStreet


Sure, a half cent is not that much. Especially on an 84.5-cent basis. But when Suburban Propane (SPH) took that distribution to 85 cents last night, it was a reminder of how special these limited partnerships have been as a consistent way to make money.


Propane is a slow-growth business, typically a rural one. Suburban is one of the largest players in the business. It regularly boosts its payout as it takes over mom-and-pop distributions, precisely the kind of companies that have been hurt in this downturn, and grows bigger and bigger.


Folks don't buy Suburban because they are looking to shoot the lights out. But it has given us a 31% total return, and I don't think it is done, as it still yields only 6.19%.


It has few champions. I think that I am the only one who has mentioned them on TV. But this is what this market is like away from Netflix (NFLX) and Chipotle (CMG) or Caterpillar (CAT) and Freeport (FCX) or Apple (AAPL) and Google (GOOG) and Amazon (AMZN). It's about grinding out gains without a lot of risk. And piling that dividend back in.

When you consider that Intel (INTC) is up just 1% and Cisco (CSCO) is down a couple during that period, I think that perhaps we need to find more Suburbans.


That's where the nonaction is.


A portfolio with a Suburban and an Apple I think represents a pretty darned good pairing. Sleep at night and party all day. Good combination.


At the time of publication, Cramer was long Apple, Intel and Cisco.


Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.


Click here to follow Cramer's Charitable Trust trades.


 Related Articles

Oct 22, 2010 1:43PM
Jim, I have to admit, I have bot some dog stocks on your reco over the years. BUT..........I also bot aapl on your reco and those gains alone have given me a 230% return in the last 15 months.  Also happy I made it my biggest holding at the time.  You don't win them all.  You just need to win more than you lose.   My 40 stock portfolio is up 40% ytd.  Thanks.
Oct 22, 2010 11:35AM
Sleep at night and party all day.

I find myself getting much more sleep now that Im no longer wasting my time reading  multiple pages just so you can garner more AD money and not deliver useful information.


If you cant say it in one page,  you are just spinning justifications  for  flawed info.



Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


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.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125 rated 1
264 rated 2
485 rated 3
679 rated 4
640 rated 5
617 rated 6
632 rated 7
493 rated 8
276 rated 9
153 rated 10

Top Picks

TAT&T Inc9



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.