Atlantic Power Corp (AT), Fifth Street Finance Corp. (FSC): Big Yields, Big Risks, Big Potential Returns

Compressco Partners (GSJK)

Compressco Partners is a limited partnership that sells equipment and services to the oil and natural gas drilling industry. Its machines increase the pressure in wells and, thus, increase their output. For a driller, this means making more money from each well.

Compressco Partners’ IPO was in mid-2011, so it is a relative newcomer. However, it was spun out of TETRA Technologies, a drilling services company with a pretty good history in that cyclical industry. As of the end of 2012, the partnership had 3,149 compressor units, up 8% from a year earlier.

For 2013, management expects revenues to hit $132.5 million, up notably from $108.6 million in 2012. That, coupled with a near 9% dividend yield (the distribution was increased in the fourth quarter), could make this a good option for more aggressive investors looking for pick and shovel companies in the oil and gas industry.

Odd Balls

When you look at high-yield companies, there are usually quirks to each one. Finding the right companies means understanding those oddities. Fifth Street Finance, Atlantic Power, and Compressco Partners all have big dividends, big risks, and big potential, making it worth the time to understand each one’s quirks.

The article Big Yields, Big Risks, Big Potential Returns originally appeared on Fool.com and is written by Reuben Gregg Brewer.

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