LinnCo LLC (LNCO): Why I Doubled Up on This High-Yielding Stock

Because Linn Energy LLC (NASDAQ:LINE) can use LinnCo LLC (NASDAQ:LNCO)’s shares as currency to close a deal, it gives the company a significant competitive advantage when bidding on deals. An all-stock deal for a C-Corp like the Berry transaction, as you can see, can add significant value to the company. The bottom line here is that the acquisition machine that LINN created is just getting warmed up.

Foolish bottom line
Short sellers have really knocked around both LINN Energy and LinnCo LLC (NASDAQ:LNCO) this year. When you consider that both companies will be paying $3.08 annualized beginning in July, LINN is yielding around 9.25% while LinnCo is yielding about 8.5%. Those are terrific, safe yields that will only grow over time.

The article Why I Doubled Up on This High-Yielding Stock originally appeared on Fool.com.

Fool contributor Matt DiLallo owns shares of Linn Energy and LinnCo. The Motley Fool recommends BreitBurn Energy Partners.

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