QR Energy LP (QRE), Hi-Crush Partners LP (HCLP): Two High-Dividend Stocks That Are Still Safe Buys

Hi-Crush’s business model is simple — its assets include a sand mine in Wisconsin an interest in a second mine in the state. It has very low-cost operations which yields great margins and is one reason why the dividend is so high. Further, thanks to the recently announced purchase of a distribution company, Hi-Crush Partners LP (NYSE:HCLP) sees a visible path to increase its payout in the years ahead. In fact, the cash and stock deal should lead to a distribution increase later this year and a double-digit boost in 2014. That’s means buyers today can lock in a more than 10% current yield.

For some perspective, its competitor U.S. Silica Holdings Inc (NYSE:SLCA) recently announced that it was instituting a quarterly dividend on its stock. At $0.125 per share the yield is just over 2%. While that’s not bad in this low-yield environment, it is still nowhere near Hi-Crush’s payout. Finally, with an average of nearly three years left on its current customer contracts, Hi-Crush Partners LP (NYSE:HCLP)’s payout is very secure and likely to become even more secure as it advances on its many growth opportunities.

Foolish bottom line
Personally, my money is on Hi-Crush. I like its solid 10% yield and visible distribution growth well into the future. That being said, both payouts are secured by long-term contracts which means neither is at risk of being cut in the near future.

The article 2 High Dividend Stocks That Are Still Safe Buys originally appeared on Fool.com and is written by Matt DiLallo.

Motley Fool contributor Matt DiLallo owns shares of LINN Energy, LLC and has the following options: Short Jul 2013 $17.5 Puts on HI-CRUSH PARTNERS LP (NYSE:HCLP) UNIT LTD PARTNER INTS. The Motley Fool recommends BreitBurn Energy Partners L.P. (NASDAQ:BBEP) The Motley Fool owns shares of HI-CRUSH PARTNERS LP UNIT LTD PARTNER INTS and U S SILICA HLDGS INC COM USD0.01.

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