Global Partners LP (NYSE:GLP) Plans Dividend Increase - $0.78 Per Share

Key Points

• Global Partners raised its quarterly dividend 2% to $0.78 per share, payable August 14 to shareholders of record August 10. The annualized dividend implies a 6.4% yield.
• The company’s current payout ratio is elevated at 101%, meaning earnings do not fully cover the dividend; analysts expect coverage to improve next year, with an estimated payout ratio of 82.5%.
• Analyst sentiment is mixed, with the stock carrying an average “Hold” rating and a $46 price target, below its reported trading price of $48.49.

Global Partners LP (NYSE:GLP - Get Free Report) announced a quarterly dividend on Wednesday, July 29th. Investors of record on Monday, August 10th will be paid a dividend of 0.78 per share by the energy company on Friday, August 14th. This represents a c) dividend on an annualized basis and a yield of 6.4%. The ex-dividend date is Monday, August 10th. This is a 2.0% increase from Global Partners's previous quarterly dividend of $0.77.

Global Partners has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 5 years. Global Partners has a payout ratio of 101.0% 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 Global Partners to earn $3.71 per share next year, which means the company should continue to be able to cover its $3.06 annual dividend with an expected future payout ratio of 82.5%.

Global Partners Trading Down 0.3%

NYSE:GLP traded down $0.14 on Wednesday, hitting $48.49. 87,861 shares of the stock were exchanged, compared to its average volume of 70,410. The company has a debt-to-equity ratio of 2.58, a quick ratio of 0.64 and a current ratio of 1.12. Global Partners has a 52 week low of $39.58 and a 52 week high of $53.25. The stock has a market capitalization of $1.65 billion, a price-to-earnings ratio of 13.47 and a beta of 1.02. The company's 50-day moving average price is $47.70 and its 200 day moving average price is $47.04.

Global Partners (NYSE:GLP - Get Free Report) last issued its quarterly earnings results on Friday, May 8th. The energy company reported $1.85 EPS for the quarter, topping the consensus estimate of $0.33 by $1.52. Global Partners had a net margin of 0.77% and a return on equity of 24.23%. The company had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $6.98 billion. On average, equities research analysts forecast that Global Partners will post 4.71 earnings per share for the current year.

Analyst Ratings Changes

GLP has been the topic of a number of analyst reports. Zacks Research downgraded Global Partners from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 7th. Wall Street Zen raised Global Partners from a "buy" rating to a "strong-buy" rating in a research note on Saturday, June 13th. Finally, Weiss Ratings upgraded Global Partners from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, May 26th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $46.00.

About Global Partners

Global Partners LP is a publicly traded master limited partnership engaged in the wholesale distribution and retail marketing of petroleum products. The company sources refined petroleum products from major refineries and suppliers and transports them through an integrated network of pipelines, terminals and storage facilities. Global Partners focuses on delivering fuel and related services to commercial, industrial and residential customers, positioning itself as a key midstream and downstream energy operator in its core markets.

Through its extensive terminal network in the northeastern United States and eastern Canada, Global Partners supplies gasoline, diesel, home heating oil, kerosene, propane and biofuels to a broad customer base.

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