Buy, Sell, or Hold: Copano Energy

Updated

In this video edition, Fool.com energy editor Joel South gives his reasons for assigning Copano Energy a hold rating. The company is attractive for a number of reasons, including a tasty 7.5% dividend and relatively safe operating cash generation. However, Copano has centralized operations around a slowly declining play coupled with static distributions (which haven't been increased since 2009), leading to today's hold rating. Check out the following video for more information on the company and see whether this could be an investment for you.

In an extremely low-interest-rate environment, MLPs and LLCs like Copano are good investments because of their sizable distributions. However, for investors looking to cash in on capital gains, there are currently a number of intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." You can get free access to this special report by clicking here.

The article Buy, Sell, or Hold: Copano Energy originally appeared on Fool.com.

Austin Smith and Joel South have no positions in the stocks mentioned above. The Motley Fool has options on Chesapeake Energy. Motley Fool newsletter services recommend Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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