Suburban Propane Partners, L.P. (NYSE:SPH) Plans Dividend Increase - $0.35 Per Share

Key Points

• Suburban Propane Partners plans to raise its quarterly dividend 7.7% to $0.35 per share, or $1.40 annually, implying a 7.9% yield. Shareholders of record on November 3 will receive payment on November 10.
• The dividend appears covered by earnings, with a current payout ratio of 76.5% and an expected future ratio of 63.4% based on projected earnings of $2.05 per share.
• The company’s latest quarterly results fell short of earnings expectations, reporting a $0.26-per-share loss versus the anticipated $0.15 loss, although revenue of $261.38 million exceeded forecasts.

Suburban Propane Partners, L.P. (NYSE:SPH - Get Free Report) announced a quarterly dividend on Thursday, October 22nd. Shareholders of record on Tuesday, November 3rd will be paid a dividend of $0.35 per share by the energy company on Tuesday, November 10th. This represents a $1.40 dividend on an annualized basis and a yield of 7.9%. The ex-dividend date is Tuesday, November 3rd. This is a 7.7% increase from Suburban Propane Partners's previous quarterly dividend of $0.3250.

Suburban Propane Partners has decreased its dividend payment by an average of 0.1% per year over the last three years. Suburban Propane Partners has a dividend payout ratio of 76.5% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities analysts expect Suburban Propane Partners to earn $2.05 per share next year, which means the company should continue to be able to cover its $1.30 annual dividend with an expected future payout ratio of 63.4%.

Suburban Propane Partners Price Performance

Suburban Propane Partners stock traded up $0.45 during mid-day trading on Thursday, hitting $17.75. The company's stock had a trading volume of 178,794 shares, compared to its average volume of 173,850. The company has a quick ratio of 0.52, a current ratio of 0.78 and a debt-to-equity ratio of 1.72. The stock has a market capitalization of $1.18 billion, a P/E ratio of 9.06, a P/E/G ratio of 2.12 and a beta of 0.43. Suburban Propane Partners has a twelve month low of $16.25 and a twelve month high of $20.80. The stock's fifty day moving average price is $17.20 and its two-hundred day moving average price is $18.20.

Suburban Propane Partners (NYSE:SPH - Get Free Report) last released its earnings results on Thursday, August 6th. The energy company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.15) by ($0.11). Suburban Propane Partners had a return on equity of 18.57% and a net margin of 9.37%. The firm had revenue of $261.38 million during the quarter, compared to analysts' expectations of $255.00 million. Research analysts forecast that Suburban Propane Partners will post 2.05 earnings per share for the current year.

About Suburban Propane Partners

Suburban Propane Partners, L.P. NYSE: SPH is a master limited partnership that distributes and sells propane and other energy products to residential, commercial, industrial, agricultural, and government customers. Its propane business supports heating, cooking, water heating, standby power generation, and vehicle-fueling applications.

The company also markets heating oil, kerosene, diesel fuel, gasoline, natural gas, and electricity in selected markets. Through its service operations, Suburban Propane provides equipment installation, maintenance, and repair services, including support for heating and cooling systems, generators, and related energy equipment.

Suburban Propane traces its roots to 1928 and has expanded through acquisitions and internal growth.

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