Portfolio No 5.
Global Partners (GLP) own one of the largest networks of independent oil terminals, gas and service statons (1600 at the last count) in New England and New York. This is one of my 3 plays in oil, gasoline and derivatives as the US becomes the world’s leading producer. I will focus on the other two in the next two weeks.
GLP easily beat expectations for Q4 and forecast increasing strength throughout the new 2019/2020 period. It has just raised its dividend slightly to $0.51 per share or 10.4%.
I first bought in December 2019 ($14.29 Dividend 13.8%) – Fidelity gave it a 9.4 rating and I have added during the period. The current price is $19.85. I am up 14% before the dividend. The current Fidelity rating after dropping to 1.7 is now a rising 6.7. Zachs has rated it a “Buy” throughout the period. Othrwise GLP has had a wider analyst rating that most of my picks. Today 2 rate it a “Strong Buy”, 5 a”Hold” and 1 “Underperform”.
GLP is gradually adding to its stock of outlets, gradualy optimising its economies of scale. It ticks all the boxes at the moment – a strong and growing American market, a tried and growing business model, a P/E of 6.7 and solid stock growth.
Footnote – Diversification.
Several readers have asked m about stock size and diversification. I try to keep my individual holdings to 5% of the total portfolio – taking profits as that bench mark is achieved – I have taken profits twice with GLP.
My focus is on the most certain, and sustainable market – currently the US. In turn I look for formidable performers, with clear special strengths and strong prospects that I understand – so no unprofitable IPO’s, no emotional canabis rushes, and no complex biotechnology. Instead yes to steadily growing , long established US centric companies coupling strong growth with a solid dividend. If and when there is a firm China agreement I will add several Chinese stocks.
At the time of writing the portfolio is up 37% for 2019.