Buy Westlake, SunCoke, AngloGold as Oil Drops to $87
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- Westlake Chemical Partners (WLKP) offers a 10.11% yield with 46 straight quarterly distributions uninterrupted, anchored by an ethylene sales agreement renewed through December 2027 that locks in a fixed $0.10/lb margin on 95% of output, though its 136% forward payout ratio signals tight coverage.
- SunCoke Energy (SXC) fell 35% over the past 52 weeks but guides for 2026 net income of $25–$43 million and 3.4 million tons of domestic coke sales, with the $325 million Phoenix Global acquisition closed in August 2025 adding electric arc furnace exposure.
- AngloGold Ashanti (AU) is up 230% over the past 52 weeks on record 2025 free cash flow of $2.9 billion, with Q4 profit reaching $855 million on $3.07 billion in revenue and seven analysts setting a $129.83 average target implying 23% upside.
- Iran's Revolutionary Guard Corps declared the Strait of Hormuz—which handles about a fifth of global oil supply—effectively closed, warning vessels "could be at risk from missiles or rogue drones," and Israel struck 30 Iranian oil depots over the weekend.
- The S&P 500, Dow, and Nasdaq 100 all slid to multi-month lows on March 3, with the S&P 500 hitting a three-month trough and the Dow a two-month low as higher energy costs compounded inflation concerns.
- The three recommended names share a low-beta profile ranging from 0.55 to 0.98, meaning they historically move less sharply than the broader market—a profile dividend investors typically favor when crude is above $100 and volatility remains elevated.
Why it matters: Income investors face a market where the S&P 500 hit a three-month low and the Strait of Hormuz is effectively closed, yet WLKP, SXC, and AU offer yields of 3.37%–10.11% with sub-1.0 betas for defensiveness—but WLKP's 136% forward payout ratio flags that this is a stability bet, not a growth one, and any Hormuz reopening could reverse the oil premium fast.
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