GO
Loading...

Cramer’s High-Yielding Oil & Gas Name

Monday, 10 Oct 2011 | 6:52 PM ET
MarkWest: Pipeline to Dividends
Mad Money's Jim Cramer cautions investors not to let today's huge rally lure you into being too aggressive. A company like MarkWest Energy Partners, a midstream master limited partnership, offer a "juicy" 6.2% yield.

Despite Monday’s rally, this is still a market where caution pays and huge dividends work, Cramer said. And you don’t get much more cautious than MarkWest Energy Partners, which he thinks is a buy at these levels.

The master limited partnership has an “astounding” 6.2 percent yield that the “Mad Money” host thinks can be increased for years to come.

While master limited partnerships like MarkWest have been some of Cramer’s favorite names in this choppy environment, there’s another reason MWE has landed on his radar. The company, which provides natural gas gathering, transportation, processing and fractionation services, had a secondary offering last week, and has sunk down to levels where he thinks it is really attractive.

“Halloween is not till the end of the month, so it's way too early to be spooked by this equity offering,” he said. “MarkWest should now have the capital it needs to finance some truly terrific growth projects. As a result, the company should be able to boost its already hefty distribution by 10 percent or more for years to come.”

MarkWest has operations all over the country. It is the largest natural gas processor and fractionator in the Appalachian basin and has gathering and processing assets in several shale formations in the southwest. It also has a bunch of new projects in the pipeline.

“MarkWest isn't a dazzler, but it sure ensures against despair when it comes calling again sometime soon,“ Cramer said. “And that yield? It’s heavenly compared to Treasuries, CDs or almost every other stock out there.”

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
MWE
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.