Plains All American Pipeline Lp (NASDAQ:PAA) Shareholders Set to Receive $0.42 Quarterly Dividend

Key Points

• Plains All American Pipeline declared a quarterly dividend of $0.4175 per share, payable November 13 to shareholders of record on October 30. The dividend implies an annualized payout of $1.67 and a 7.1% yield.
• The company has raised its dividend for five consecutive years, but its current 110.6% payout ratio exceeds earnings. Analysts expect next year’s earnings to cover the dividend more closely, with a projected payout ratio of 93.8%.
• PAA shares recently traded at $23.68, while the company’s latest quarterly earnings of $0.41 per share came in below the $0.50 analyst consensus despite revenue increasing 66.3% year over year.

Plains All American Pipeline Lp (NASDAQ:PAA - Get Free Report) declared a quarterly dividend on Thursday, October 1st. Shareholders of record on Friday, October 30th will be given a dividend of $0.4175 per share on Friday, November 13th. This represents a $1.67 annualized dividend and a dividend yield of 7.1%. The ex-dividend date of this dividend is Friday, October 30th.

Plains All American Pipeline has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 5 consecutive years. Plains All American Pipeline has a payout ratio of 110.6% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Plains All American Pipeline to earn $1.78 per share next year, which means the company should continue to be able to cover its $1.67 annual dividend with an expected future payout ratio of 93.8%.

Plains All American Pipeline Stock Performance

Shares of NASDAQ PAA traded down $0.02 during mid-day trading on Friday, reaching $23.68. 1,163,138 shares of the company were exchanged, compared to its average volume of 3,025,437. The stock has a market capitalization of $16.71 billion, a P/E ratio of 6.56, a P/E/G ratio of 8.18 and a beta of 0.58. The company has a quick ratio of 1.10, a current ratio of 1.12 and a debt-to-equity ratio of 0.69. The company's 50-day simple moving average is $24.68 and its 200-day simple moving average is $23.20. Plains All American Pipeline has a twelve month low of $15.69 and a twelve month high of $26.39.

Plains All American Pipeline (NASDAQ:PAA - Get Free Report) last released its quarterly earnings results on Friday, August 7th. The company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.09). The company had revenue of $17.69 billion during the quarter. Plains All American Pipeline had a net margin of 5.29% and a return on equity of 12.13%. The firm's revenue for the quarter was up 66.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.36 earnings per share. As a group, research analysts predict that Plains All American Pipeline will post 1.78 earnings per share for the current year.

Plains All American Pipeline Company Profile

Plains All American Pipeline, L.P. is a publicly traded master limited partnership that provides midstream energy infrastructure and logistics services. The company primarily transports, stores and handles crude oil and natural gas liquids (NGLs) for producers, refiners, exporters and other energy customers.

Its operations include pipeline transportation, gathering systems, storage terminals, rail and truck facilities, and other supply-chain assets. Plains also provides terminalling, inventory management and related logistics services that connect production areas with refineries, processing facilities and export markets.

Plains All American serves key producing regions in the United States and Canada, with a significant presence in the Permian Basin and other North American oil and NGL markets.

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