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Genesis Energy, L.P. (GEL), PVR Partners LP (PVR): Three Underfollowed Dividend-Paying Stocks for Your Watchlist

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There are a lot of solid dividend-paying stocks to choose from these days. If you are on the lookout for names not on everyone else’s radars, here are three companies that should be on your list. All three are midstream MLPs that offer income-seeking investors more than just income.

PVR Partners LP (NYSE:PVR)

The natural resource sector is one of the best places to find dividend-paying stocks these days. One company that’s caught my eye is master limited partnership PVR Partners LP (NYSE:PVR) and its 8% distribution. PVR Partners LP (NYSE:PVR) is a bit unique in that it not only owns traditional MLP-type midstream assets like pipelines and processing plants, but it also owns and manages coal and other natural resource properties, which you can see in the map below. The company doesn’t actually mine the coal; instead, it leases its reserves to others and collects a royalty. Add that model to its midstream business and the result is a company that generates great cash flow to fund its distribution. That’s why this businesses is one that you should get on your watchlist.

Source: PVR Partners LP (NYSE:PVR) investor presentation (link opens a PDF)

Inergy
With operations that include a natural gas storage business as well as natural gas liquids assets, Inergy is another MLP to consider if you are on the lookout for a dividend-paying stock. There are a lot of moving parts with this company, which makes it an interesting stock to watch. The company, along with its affiliate Inergy Midstream LP (NYSE:NRGM), is in the process of merging with Crestwood Midstream Partners LP (NYSE:CMLP) to create a company boasting increased size, scale, and diversity, as you can see below. Once the transformational transaction is complete, the company can pursue its opportunity-rich organic growth projects which should drive both returns and income growth for investors.

Source: Intergy investor presentation

Genesis Energy, L.P. (NYSE:GEL)

The final stock to get on your dividend watchlist is Genesis Energy, L.P. (NYSE:GEL). The company’s business is split between pipeline transportation, refinery services, and supply and logistics, as you can see on the slide below. In addition to the assets it already has on the books, Genesis Energy, L.P. (NYSE:GEL) has a number of projects in the pipeline to drive future growth. Genesis Energy, L.P. (NYSE:GEL) estimates that these projects will enable it to provide distribution growth to investors in the low double digits well into the future. Genesis Energy, L.P. (NYSE:GEL) has quite the history to back those estimates up as the company has 31 consecutive quarters of distribution increases, including 26 which were more than 10%. That’s what makes this dividend-paying stock one to watch.

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