CEDAR FAIR L.P. $26 - New York symbol FUN

CEDAR FAIR L.P. $26 (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 55.5 million; Market cap: $1.4 billion; Priceto- sales ratio: 1.4; Dividend yield: 6.2%; TSINetwork Rating: Average; www.cedarfair.com) owns 11 amusement parks, seven water parks and one hotel.

The partnership typically earns most of its money in the summer, as only one of its parks (Knott’s Berry Farm in Southern California) stays open year round. Still, Cedar Fair’s revenue rose 4.9% in the first quarter of 2012, to $28.2 million from $26.7 million a year earlier. Its loss narrowed to $65.2 million, or $1.18 a unit, from $84.7 million, or $1.53 a unit.

Cedar Fair keeps upgrading its parks: it will spend $90 million on new roller coasters and other attractions in 2012. That’s similar to what it spent in 2011.

The partnership will probably earn $2.29 a unit this year. The stock trades at a reasonable 11.4 times that estimate. The $1.60-a-unit annual distribution rate yields 6.2%. Cedar Fair aims to raise the annual payout to $2.00 a unit in 2013.

Cedar Fair is a buy.

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