Trade Close: Midcoast Energy Partners
Today I am recommending that subscribers close their open positions in Midcoast Energy Partners LP (NYSE:MEP).
With the company’s first quarter earnings release, the Midcoast management team reported a slowing business and that distribution growth will be slower through at least 2015. MEP does yield 10% and the distributions are growing, but this MLP no longer (if it ever did) has the total return potential I look for for 30 Day Dividends recommendations.
With the current unit price of $13.45, the position will be closed at about a break even from the entry recommendation made on December 31, 2014. The return includes one distribution earned in February.
MEP goes ex-dividend on May 6.
Recommendation: Sell MEP at about $13.40 or better if possible.