VNR has announced April’s distribution will increase by 1.2% to 21¢/unit. That doesn’t sound like a lot but consider that the previous rate only ran for seven months. The previous rate went for only three months, and the one before for six months.
If you tabulate growing from 20¢ to 21¢ in 16 months annualizes to 3.7% growth of distribution. That’s not bad, but it’s not the best. According to the Rule of 72, it will take 19 years to double the distribution. But I’m willing to put up with this because the annual yield is around 8.5%, which is pretty good.
The only thing I need to fine tune is the timing of my payments on my HELOC. The due date is the 15th of the month, but I usually don’t get my distribution until the 15th or sometimes a few days later. Given the time it takes to cut a check and mail it to my bank, I am planning to pay the HELOC on time, and then transfer the distribution into my checkbook, backfilling the earlier payment.