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Hey, Zach here!

Today, I’m sharing a stock that is da-bomb. Speaking of bombs, the US took a large military action against Iran this weekend. Plus, my sister got married!

Today’s topics:

1. I’m Buying This 7% Yield Energy Stock Nobody’s Talking About

2. Dividend Increases This Week

3. My New Buys This Week

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Stock Analysis

I’m Buying This 7% Yield Energy Stock Nobody’s Talking About

Why I’m Excited About HESM

• Rare Yield-Growth Combo: 7.37% current yield with a 5-year dividend CAGR of 10.5%

• Proven Outperformance: 192% total return over the past 5 years (23.9% annualized)

• Under-the-Radar Opportunity: Small-cap midstream name overlooked by most Wall Street analysts

Business Overview

• Core Operations: Transportation of crude oil, natural gas liquids & produced water in the Williston Basin (ND/SD/MT) and western Canada

• Asset Footprint:

  • Extensive gathering pipelines (yellow on Hess site map) feeding processing plants

  • Crude pipelines (mint-colored lines) and truck/rail interconnects to major railroads (BNSF, UP, CSX, NS)

  • 550 owned crude-oil rail cars at the Tioga terminal (140k bbl/day capacity)

Dividend Profile & Safety

• Steady Fee-Based Revenue: 85% of cash flow from fixed-fee contracts (100% fee-based, MVCs guarantee ≥80% volumes)

• Tax Simplicity: Structured as a UPC (Umbrella Partnership C-Corp) so shareholders receive 1099-DIV (no K-1)

• Sustainable Payout: 37% free-cash-flow payout ratio; management targets ≥5% annual dividend growth through 2027

Valuation & Price Target

• Discounted Dividend Model:

  • 5% growth / 10% discount rate → Fair value ~$53.80 (≈28% upside)

  • 7% growth / 10% discount rate → Fair value ~$75.90 (≈97% upside)

• Analyst Consensus: Mean target $44 (↑14%); range $41–$48

• Margin of Safety: Undervalued at current ~$38.50 share price under multiple scenarios

Why I’m Buying Now

• Core Dividend Growth Position: Building a meaningful stake in HSM for my long-term portfolio

• Summer Sale Reminder: If you haven’t yet, try my preferred research tool at DividendData.com—50% off for life!

🔍 Watch the full HSM stock review: YouTube: I’m Buying This 7% Yield Energy Stock Nobody’s Talking About

Dividend News

🚀 Dividend Raises This Week

• PSBQ - PSB Holdings raises semi-annual dividend by 6.3% to $0.34 a share

• ISTR - Investar raises dividend by 4.8% to $0.11 a share

• EMYB - Embassy Bancorp increases dividend by ~14% to $0.48

• CNBB - CNB Community Bancorp raises dividend by 3.3%

• ACU - Acme United raises dividend by 7%

• MITT - AG Mortgage Investment Trust increases dividend by ~5% to $0.21

• FFMR - First Farmers Financial raises quarterly dividend by 2% to $0.50/share

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_{Reg A+ via StartEngine Crowdfunding, Inc. No BD/intermediary involved. Investment is speculative, illiquid & high risk. See OC and Risks on page.}

💰 My Buys This Week

📅 Keep Investing. Stay informed.

– Zach
Founder, Dividend Data

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Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter