Energy Transfer LP (NYSE:ET) Raises Dividend to $0.34 Per Share

Key Points

• Energy Transfer raised its quarterly dividend to $0.34 per share, payable August 19 to shareholders of record on August 7. The dividend equates to an approximately 6.8% annualized yield.
• The distribution appears covered but leaves limited room for error: Energy Transfer has an 86.5% current payout ratio, while analysts expect a future payout ratio of 88.8% based on projected earnings.
• The company’s latest quarterly earnings missed estimates, with EPS of $0.35 versus the $0.40 consensus, although revenue rose 32.1% year over year to $27.77 billion. Shares opened at $19.91, down 2.2%.

Energy Transfer LP (NYSE:ET - Get Free Report) declared a quarterly dividend on Monday, July 27th. Stockholders of record on Friday, August 7th will be given a dividend of 0.34 per share by the pipeline company on Wednesday, August 19th. This represents a c) annualized dividend and a dividend yield of 6.8%. The ex-dividend date is Friday, August 7th. This is a 0.7% increase from Energy Transfer's previous quarterly dividend of $0.34.

Energy Transfer has raised its dividend by an average of 0.0%per year over the last three years and has raised its dividend every year for the last 4 years. Energy Transfer has a payout ratio of 86.5% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect Energy Transfer to earn $1.52 per share next year, which means the company should continue to be able to cover its $1.35 annual dividend with an expected future payout ratio of 88.8%.

Energy Transfer Stock Down 2.2%

NYSE:ET opened at $19.91 on Tuesday. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.93 and a current ratio of 1.17. The company has a market cap of $68.50 billion, a PE ratio of 16.59, a PEG ratio of 1.18 and a beta of 0.55. Energy Transfer has a 52-week low of $16.18 and a 52-week high of $20.70. The stock has a 50-day simple moving average of $19.54 and a 200 day simple moving average of $19.02.

Energy Transfer (NYSE:ET - Get Free Report) last announced its earnings results on Tuesday, May 5th. The pipeline company reported $0.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($0.05). Energy Transfer had a net margin of 4.66% and a return on equity of 9.77%. The firm had revenue of $27.77 billion during the quarter, compared to analyst estimates of $25.78 billion. During the same period in the prior year, the business posted $0.36 EPS. The firm's quarterly revenue was up 32.1% compared to the same quarter last year. On average, sell-side analysts expect that Energy Transfer will post 1.43 EPS for the current fiscal year.

Energy Transfer Company Profile

Energy Transfer NYSE: ET is a Dallas-based midstream energy company that develops and operates infrastructure for the transportation, storage and processing of hydrocarbons. The company's operations focus on moving and storing natural gas, natural gas liquids (NGLs), crude oil and refined products through an integrated network of pipelines, terminals, storage facilities and processing plants. Energy Transfer provides core midstream services such as gathering, compression, fractionation, processing, and bulk transportation to support production and downstream supply chains.

Its asset base spans an extensive network across the United States, connecting producing regions, processing centers, petrochemical hubs and coastal and inland markets.

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