5-Star Stocks Poised to Pop: DCP Midstream

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas transporter DCP Midstream Partners (NYS: DPM) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at DCP's business and see what CAPS investors are saying about the stock right now.

DCP facts

Headquarters (Founded)Denver (2005)
Market Cap$2.1 billion
IndustryOil and gas storage and transportation
Trailing-12-Month Revenue$1.5 billion
ManagementCEO Mark Borer (since 2006)
CFO Angela Minas (since 2008)
Return on Equity (Average, Past 3 Years)19%
Cash/Debt$2.0 million / $748.9 million
Dividend Yield5.6%
CompetitorsEl Paso
Enterprise Products Partners
Martin Midstream Partners

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 204 members who have rated DCP believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, Motley Fool co-founder David Gardner (TMFSpiffyPop), nicely summed up the outperform argument:

With natural gas getting cheaper and cheaper it looks increasingly to me like more and more US businesses and consumers will adopt it, even if Congress doesn't help out, or tries to fight it. DCP, as a tollbooth company that gets paid for natural gas sloshing through its pipeline, should benefit. It already has -- the stock is about 50 percentage points ahead of the S&P 500 over the past two years, and that doesn't include the solid 5 % yield the unit shares are paying out. For these reasons, and in order better to study and to learn: Outperform.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, DCP may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Enterprise Products. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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