Sell Dorchester Minerals (DMLP)
Today is a sad day, in a way.
Why?
Because I’m parting ways with Dorchester Minerals (DMLP).
Dorchester has been one of my favorite stocks for a long time.
I recommended the stock in October 2020 when the energy markets were depressed.
Since then, the stock has generated a total return of 221% (including $4.22 of distributions/dividends).
I recently updated my price target to 33.50, but that only implies modest upside from the stock’s current price of 29.50.
Yes, the stock will continue to pay monster dividends assuming energy prices remain elevated.
But I have higher conviction levels in my other energy recommendations: Epsilon Energy (EPSN) and Kistos PLC (GB: KIST). Both have equally strong fundamentals but more attractive valuations.
So I’m downgrading Dorchester to Sell but will keep it on my watch list in case the stock pulls back sharply or energy prices rally even high.
