Nov 4, 2019. PAA Plains All American has been one of the worst positions ever held in the Core Portfolio. It is DOWN a shocking 62% since we bought it….we have received dividends along the way which would enhance the 62%, but this still a terrible situation.
So we were intrigued when a new article appeared in seekingalpha.com stating this was an excellent time to BUY PAA!!!!.
We are NOT suggesting you buy PAA, but if you own this position, just stay with it as we are.
Bottom Line: The Market Ignoring PAA’s Successful Transformation Means It’s The Best Time In 11 Years To Buy This Safe 8% Yielding Blue Chip
By no means are we saying that Plains is the highest quality MLP you can buy (that title goes to 11/11 quality Super SWAN Enterprise Products Partners). Nor is it the most undervalued safe midstream you can buy (that would be 8/11 above-average quality Energy Transfer LP).
But for anyone looking for a safe 8% yield that’s likely to grow about 5% to 6% over time, and potentially deliver strong double-digit long-term returns, Plains All American and Plains GP holdings are strong buys to consider today.