KNOT Offshore Partners LP (NYSE:KNOP) Raises Dividend to $0.10 Per Share

Key Points

• KNOT Offshore Partners raised its quarterly dividend by 33.3%, from $0.075 to $0.10 per share. The annualized dividend is $0.40, representing a 3.8% yield, with payment scheduled for November 12 to shareholders of record on October 26.
• The dividend is currently covered by earnings, with a payout ratio of 30.3%, but analysts expect coverage to weaken significantly next year. Forecast earnings of $0.19 per share imply a potential future payout ratio of 157.9% against the $0.30 annual dividend.
• KNOP shares traded at $10.45, within a one-year range of $8.00 to $11.78, while institutional investors and hedge funds owned 26.82% of the company.

KNOT Offshore Partners LP (NYSE:KNOP - Get Free Report) announced a quarterly dividend on Thursday, October 1st. Shareholders of record on Monday, October 26th will be paid a dividend of $0.10 per share by the shipping company on Thursday, November 12th. This represents a $0.40 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend is Monday, October 26th. This is a 33.3% increase from KNOT Offshore Partners's previous quarterly dividend of $0.0750.

KNOT Offshore Partners has decreased its dividend by an average of 0.5%per year over the last three years. KNOT Offshore Partners has a dividend payout ratio of 30.3% meaning its dividend is sufficiently covered by earnings. Research analysts expect KNOT Offshore Partners to earn $0.19 per share next year, which means the company may not be able to cover its $0.30 annual dividend with an expected future payout ratio of 157.9%.

KNOT Offshore Partners Stock Performance

KNOP stock traded up $0.12 during midday trading on Thursday, reaching $10.45. 72,133 shares of the company were exchanged, compared to its average volume of 88,295. The company has a debt-to-equity ratio of 1.10, a current ratio of 0.34 and a quick ratio of 0.33. The business has a 50-day moving average price of $10.78 and a two-hundred day moving average price of $10.60. KNOT Offshore Partners has a one year low of $8.00 and a one year high of $11.78. The firm has a market capitalization of $351.88 million, a price-to-earnings ratio of 23.76 and a beta of -0.05.

KNOT Offshore Partners (NYSE:KNOP - Get Free Report) last released its quarterly earnings data on Friday, August 14th. The shipping company reported $0.05 EPS for the quarter. The firm had revenue of $96.78 million for the quarter. KNOT Offshore Partners had a net margin of 3.90% and a return on equity of 5.73%. Equities research analysts forecast that KNOT Offshore Partners will post 0.22 EPS for the current year.

Hedge Funds Weigh In On KNOT Offshore Partners

Institutional investors and hedge funds have recently modified their holdings of the business. Renaissance Technologies LLC raised its stake in KNOT Offshore Partners by 8.8% in the 1st quarter. Renaissance Technologies LLC now owns 1,335,435 shares of the shipping company's stock worth $13,461,000 after purchasing an additional 108,400 shares in the last quarter. American Beacon Advisors Inc. boosted its holdings in KNOT Offshore Partners by 71.8% in the 2nd quarter. American Beacon Advisors Inc. now owns 865,554 shares of the shipping company's stock valued at $8,638,000 after purchasing an additional 361,659 shares during the period. Alpine Global Management LLC acquired a new position in shares of KNOT Offshore Partners during the 4th quarter worth approximately $1,294,000. Janney Montgomery Scott LLC acquired a new position in shares of KNOT Offshore Partners during the 1st quarter worth approximately $643,000. Finally, Walleye Capital LLC bought a new position in shares of KNOT Offshore Partners during the first quarter worth approximately $259,000. 26.82% of the stock is currently owned by institutional investors and hedge funds.

About KNOT Offshore Partners

KNOT Offshore Partners LP NYSE: KNOP is a publicly traded master limited partnership that owns and operates shuttle tankers. These specialized vessels transport crude oil from offshore production facilities, such as floating production, storage and offloading units, to onshore terminals, refineries, or other destinations.

The partnership's fleet is primarily employed under long-term charter contracts with energy companies and offshore producers. Its shuttle tankers are designed for repeated loading and transportation of crude oil in offshore environments and may use dynamic positioning and other specialized systems to safely connect with production and storage vessels.

KNOT Offshore Partners was established in 2013 and is sponsored by Knutsen NYK Offshore Tankers AS, a company associated with the Knutsen shipping group and NYK Line.

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