Core Viewpoint - The article discusses the dividend safety of three energy-related investment options—XOMO, MLPA, and KRP—against the backdrop of fluctuating oil prices, particularly as WTI crude oil approaches $100 per barrel. Group 1: XOMO - XOMO generates income by selling call options on ExxonMobil stock, with recent weekly payments fluctuating between $0.05 and $0.19 per share, influenced by options market conditions rather than business fundamentals [1] - The share price of XOMO has increased approximately 19% year-to-date in 2026, indicating a better total return for investors compared to the yield-only perspective [1] - The trailing dividend yield for XOMO is around 2.4%, which is considered low for a covered call fund [1] Group 2: MLPA - MLPA focuses on midstream energy partnerships, with top holdings including Energy Transfer, Enterprise Products Partners, and MPLX, which together account for about 37% of the portfolio [1] - The fund has consistently raised its quarterly payout from $0.77 per unit in early 2023 to $1.00 in February 2026, resulting in a current yield of approximately 7.3% [1] - Shares of MLPA have appreciated about 13.5% year-to-date in 2026, providing both income and price appreciation to unitholders [1] Group 3: KRP - Kimbell Royalty Partners owns interests in over 17 million acres across major U.S. onshore basins, with revenue fully exposed to commodity prices [1] - The distribution policy allocates 75% of cash available for distribution to unitholders, with the remaining 25% directed towards debt reduction, which is a structural positive [1] - The Q4 2025 distribution was $0.37 per unit, with a total of $1.60 per unit for the full year, classified as return of capital for tax purposes [1]
Check XOMO, MLPA, and KRP's Dividend Safety As Oil Hits $100 A Barrel
247Wallst·2026-03-12 17:00