The Secret's Out: Buy This Magnificent High-Yield Dividend Stock Before Wall Street Catches On

Core Viewpoint - Delek Logistics Partners has consistently increased its cash distributions to investors, showcasing a strong financial foundation and growth potential in the midstream sector [2][11]. Group 1: Financial Performance - The company recently achieved its 46th consecutive quarterly distribution increase, with a nearly 2% raise pushing its yield close to 11% [2]. - Delek Logistics ended the second quarter with a distribution coverage ratio of 1.32 times, indicating a healthy ability to cover its distribution payments [5][7]. - The leverage ratio improved to 3.81 at the end of the second quarter, down from 4.34 at the end of the previous year [6]. Group 2: Growth Strategy - The company has been diversifying its operations by acquiring assets to support third-party customers, with expectations that earnings from its parent will decline from 50% to 36% by the second half of next year [4]. - In 2022, Delek Logistics acquired 3Bear Energy for $624.7 million to enhance third-party revenue and growth [7]. - Recent acquisitions include the Wink to Webster Pipeline System and H2O Midstream for $230 million, aimed at expanding midstream services in the Permian Basin [8][9]. Group 3: Future Outlook - The company plans to invest in organic expansion projects, including a new natural gas processing plant in the Delaware Basin [9]. - Continued growth-focused investments are expected to generate incremental cash flow, allowing for further increases in distribution payments [10][11].