Recent Stock Purchases – National Presto Industries (NYSE: NPK), Energy Transfer Partners (NYSE: ETP) and CVR Partners (NYSE: UAN)

I recently purchased three high yield dividend stocks.  The first stock was National Presto Industries.  This company engages in the manufacture and sale of housewares/small appliances, defense products, and absorbent products.  The Housewares/Small Appliance segment designs, markets, and distributes housewares and small electrical appliances, including pressure cookers and canners; the Presto Control Master heat control single thermostatic control line of fry pans, griddles, woks, and multi-purpose cookers; deep fryers of various sizes; hamburger cookers; waffle makers; pizza ovens and slicer/shredders; electric heaters; corn poppers; microwave bacon cookers; coffeemakers and coffeemaker accessories; electric tea kettles; electric peelers; electric knife sharpeners; shoe polishers; and timers.  This segment sells its products directly to retailers in the United States and Canada, as well as through independent distributors.  The Defense Products segment manufactures precision mechanical and electro-mechanical products for the U.S. Department of Defense (DOD) and DOD prime contractors.  Its products include training ammunition, fuzes, firing devices, initiators, and medium caliber cartridge cases.  This segment also performs load, assemble, and pack operations on ordnance related products.  The Absorbent Products segment manufactures and sells private label adult incontinent products and diapers.  This segment sells its products to distributors and other absorbent product manufacturers. National Presto Industries, Inc. was founded in 1905 and is based in Eau Claire, Wisconsin.

The company has almost $500 million in annual sales and $60 million in annual profits, which are pretty healthy margins.  National Presto is a moderately growing company, but has a very strong balance sheet.

I bought this stock primarily for its special dividend they pay out once a year.  Although the stock pays a regular dividend equating to 1% annually, if you factor in their special dividend that is determined once a year, the yield jumps to 7.4%.  There is some risk because the special dividend may be cut and there is no guarantee that it will remain as generous as it has been in the past, but from what I can tell, the company seems to be on a strong enough financial footing to continue to pay out a special dividend for the foreseeable future.  The stock possesses a 5-star Motley Fool CAPS rating.

I bought into National Presto at $102.42 per share.

The second stock I recently bought was Energy Transfer Partners.  This company engages in the natural gas midstream, and intrastate transportation and storage businesses in the United States.  This company has an eye-popping (but stable) dividend and comes from master limited partnerships.  The company develops its own energy infrastructure and benefits from a tax-law quirk that allows them to be set up as partnerships.  That lowers their cost of capital — but like REITs, they’re required to pay out most of their taxable income to investors.

The company has almost $6 billion in annual sales and $250 million in annual profits.  I bought this stock primarily for healthy dividend of about 7.5% annually.  The stock possesses a 5-star Motley Fool CAPS rating.

I bought into Energy Transfer Partners at $47.65 per share.

The last stock I recently purchased was CVR Partners.  This company engages in the production of nitrogen fertilizers including ammonia and urea ammonium nitrate.  The company held an IPO in April led by parent CVR Energy, which continues to hold more than 70% of the units. CVR Partners owns and operates a nitrogen fertilizer plant in Kansas. The company was incorporated in 2007 and is based in Sugar Land, Texas. CVR Partners, LP operates as a subsidiary of CVR Energy, Inc.

It is projected the company will pay out a dividend in excess of 10% at current prices, which is primarily why I purchased the stock.  Relative to its peers, the stock also is attractively valued.  However, the company has warned that dividends will be highly volatile due to the nature of the industry, so there is some risk in the stock.  The stock possesses a 5-star Motley Fool CAPS rating.

I bought into CVR Partners at $18.64 per share.

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About runninginspired

I’m in my mid-40s and have been running for about 19 years. I have finished 24 marathons with a personal best time of 3:04. I currently reside in San Diego, CA. I enjoy running since it keeps you honest and will give back what you put into it. Work hard, but smart, and good results will eventually follow. I like to experiment with training plans, gadgets, shoes, and nutrition to find what works for me. The primary purpose of this blog is to document my training and thoughts about running in my ongoing quest to improve my fitness and health.
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