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Stonemor Partners LP Dividend a ‘Ponzi Dividend’ – Seeking Alpha (STON)

According to a Seeking Alpha article, the nearly 10 percent dividend paid by Stonemor Partners LP (NYSE: STON) is a ‘Ponzi Dividend’ and unsustainable over time.

Author, Richard Pearson argues that the units of the limited partnership are a favorite among retail investors but three red flags exist:

1- Institutional investors don’t own StoneMor;

2- Company insiders don’t own it;

3- Ratings agencies call StoneMor’s credit, junk;

4- Warnings from analysts;

5- 5 years worth of losses;

6- The company may breach debt covenants.

The author discloses that he is short StoneMor. Read the article here.

[stock-tools exchange="NYSE" symbol="GLD" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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