Alliance Resource Partners, L.P. (NASDAQ:ARLP) to Issue $0.60 Quarterly Dividend

Key Points

• Alliance Resource Partners declared a quarterly dividend of $0.60 per share (ex-dividend/record date: May 8), payable May 15, which implies a 9.4% yield.
• The dividend appears marginally sustainable but stretched: the payout ratio is about 90.2% after the partnership's modest 0.5% average annual dividend growth over three years, while analysts forecast ~$2.66 EPS next year versus a $2.40 annualized dividend.
• Shares traded near $25.42 with a market cap of ~$3.27 billion and a P/E around 10.6; the report shows an anomalous quarterly EPS of $999.00 (likely a reporting error) alongside a net margin of 14.18% and ROE of 18.41%.

Alliance Resource Partners, L.P. (NASDAQ:ARLP - Get Free Report) announced a quarterly dividend on Monday, April 27th. Stockholders of record on Friday, May 8th will be paid a dividend of 0.60 per share by the energy company on Friday, May 15th. This represents a c) dividend on an annualized basis and a dividend yield of 9.4%. The ex-dividend date is Friday, May 8th.

Alliance Resource Partners has raised its dividend payment by an average of 0.5%annually over the last three years. Alliance Resource Partners has a dividend payout ratio of 90.2% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Research analysts expect Alliance Resource Partners to earn $2.66 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 90.2%.

Alliance Resource Partners Price Performance

Shares of NASDAQ:ARLP traded up $0.52 during midday trading on Monday, reaching $25.42. The company's stock had a trading volume of 668,833 shares, compared to its average volume of 423,289. Alliance Resource Partners has a fifty-two week low of $22.20 and a fifty-two week high of $29.45. The company has a market capitalization of $3.27 billion, a P/E ratio of 10.59 and a beta of 0.31. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.10 and a quick ratio of 1.41. The business's fifty day simple moving average is $26.87 and its 200-day simple moving average is $25.16.

Alliance Resource Partners (NASDAQ:ARLP - Get Free Report) last announced its earnings results on Monday, April 27th. The energy company reported $999.00 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $998.50. Alliance Resource Partners had a return on equity of 18.41% and a net margin of 14.18%. As a group, equities research analysts expect that Alliance Resource Partners will post 2.34 EPS for the current fiscal year.

About Alliance Resource Partners

Alliance Resource Partners, L.P. NASDAQ: ARLP is a Tulsa, Oklahoma–based master limited partnership engaged in the production, marketing and transportation of bituminous coal. Through its subsidiaries, the company develops, owns and operates surface and underground coal mines, providing fuel primarily for electric power generation and various industrial applications. Alliance's integrated business model covers the extraction of raw coal, processing at preparation plants and delivery to domestic and export customers.

The partnership operates multiple mining complexes across Illinois, Indiana, Kentucky and West Virginia.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.