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

Key Points

• Alliance Resource Partners, L.P. will issue a quarterly dividend of $0.60 per share on August 14th, with a current annualized dividend yield of 8.58%.
• The company has a dividend payout ratio of 105.3%, indicating it currently relies on its balance sheet to meet dividend payments, though future earnings projections suggest it may improve to a 77.1% payout ratio.
• Alliance Resource Partners reported earnings of $0.55 per share for the last quarter, missing analysts' expectations by $0.06, and has a market capitalization of $3.59 billion.

Alliance Resource Partners, L.P. (NASDAQ:ARLP - Get Free Report) declared a quarterly dividend on Monday, July 28th, RTT News reports. Shareholders of record on Thursday, August 7th will be given a dividend of 0.60 per share by the energy company on Thursday, August 14th. This represents a $2.40 dividend on an annualized basis and a yield of 8.58%.

Alliance Resource Partners has a dividend payout ratio of 105.3% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Alliance Resource Partners to earn $3.63 per share next year, which means the company should continue to be able to cover its $2.80 annual dividend with an expected future payout ratio of 77.1%.

Alliance Resource Partners Stock Performance

Shares of NASDAQ:ARLP opened at $27.98 on Monday. The company has a market capitalization of $3.59 billion, a price-to-earnings ratio of 13.20 and a beta of 0.54. The firm's 50 day simple moving average is $26.38 and its 200 day simple moving average is $26.56. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.93 and a quick ratio of 1.37. Alliance Resource Partners has a fifty-two week low of $22.18 and a fifty-two week high of $30.56.

Alliance Resource Partners (NASDAQ:ARLP - Get Free Report) last posted its earnings results on Monday, July 28th. The energy company reported $0.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.61 by ($0.06). Alliance Resource Partners had a return on equity of 15.77% and a net margin of 11.84%. As a group, sell-side analysts forecast that Alliance Resource Partners will post 2.72 earnings per share for the current year.

Hedge Funds Weigh In On Alliance Resource Partners

An institutional investor recently raised its position in Alliance Resource Partners stock. Royal Bank of Canada lifted its position in shares of Alliance Resource Partners, L.P. (NASDAQ:ARLP - Free Report) by 7.0% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 19,058 shares of the energy company's stock after acquiring an additional 1,254 shares during the quarter. Royal Bank of Canada's holdings in Alliance Resource Partners were worth $519,000 at the end of the most recent quarter. 18.11% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ARLP. Wall Street Zen raised Alliance Resource Partners from a "hold" rating to a "buy" rating in a report on Sunday, May 4th. Benchmark reissued a "buy" rating and set a $29.00 target price on shares of Alliance Resource Partners in a report on Tuesday, April 29th.

About Alliance Resource Partners

Alliance Resource Partners, L.P., a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties.

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