Pembina Pipeline Corp. (NYSE:PBA) Plans Dividend Increase - C$0.74 Per Share

Key Points

• Dividend increase: Pembina declared a quarterly dividend of C$0.735 per share (a 3.5% raise from C$0.71), payable June 30 with an ex‑dividend/record date of June 15, implying an annualized yield of about 6.4%.
• High payout ratio but currently covered: The company’s dividend payout ratio is about 91.6%, meaning dividends are covered by earnings now but could be vulnerable if earnings fall; analysts forecast $2.32 EPS next year (implying a ~89.7% payout).
• Market reaction and valuation: Shares rose about 1.7% to $45.73 after the announcement; Pembina has a market cap near $26.6 billion and a trailing P/E of roughly 24.0.

Pembina Pipeline Corp. (NYSE:PBA - Get Free Report) TSE: PPL declared a quarterly dividend on Thursday, May 7th. Shareholders of record on Monday, June 15th will be given a dividend of 0.735 per share by the pipeline company on Tuesday, June 30th. This represents a c) dividend on an annualized basis and a yield of 6.4%. The ex-dividend date is Monday, June 15th. This is a 3.5% increase from Pembina Pipeline's previous quarterly dividend of $0.71.

Pembina Pipeline has raised its dividend payment by an average of 0.0%per year over the last three years and has increased its dividend every year for the last 4 years. Pembina Pipeline has a dividend payout ratio of 91.6% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Equities analysts expect Pembina Pipeline to earn $2.32 per share next year, which means the company should continue to be able to cover its $2.08 annual dividend with an expected future payout ratio of 89.7%.

Pembina Pipeline Stock Up 1.7%

PBA stock traded up $0.77 during mid-day trading on Friday, reaching $45.73. 183,350 shares of the company traded hands, compared to its average volume of 1,415,578. The stock has a market cap of $26.58 billion, a price-to-earnings ratio of 24.05 and a beta of 0.58. The company has a quick ratio of 0.47, a current ratio of 0.61 and a debt-to-equity ratio of 0.80. Pembina Pipeline has a fifty-two week low of $35.45 and a fifty-two week high of $46.73. The firm's 50 day moving average price is $44.38 and its 200 day moving average price is $41.07.

Pembina Pipeline (NYSE:PBA - Get Free Report) TSE: PPL last released its quarterly earnings results on Thursday, February 26th. The pipeline company reported $0.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.06. The business had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $1.41 billion. Pembina Pipeline had a return on equity of 11.17% and a net margin of 21.76%.The company's quarterly revenue was down 10.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.92 EPS. As a group, equities research analysts predict that Pembina Pipeline will post 2.18 EPS for the current fiscal year.

Institutional Investors Weigh In On Pembina Pipeline

Hedge funds have recently modified their holdings of the stock. Tobam bought a new stake in shares of Pembina Pipeline in the 4th quarter worth approximately $28,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Pembina Pipeline in the 3rd quarter worth approximately $31,000. Westside Investment Management Inc. raised its holdings in shares of Pembina Pipeline by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 808 shares of the pipeline company's stock worth $32,000 after purchasing an additional 404 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in shares of Pembina Pipeline in the 4th quarter worth approximately $36,000. Finally, Physician Wealth Advisors Inc. raised its holdings in shares of Pembina Pipeline by 441.2% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 920 shares of the pipeline company's stock worth $37,000 after purchasing an additional 750 shares during the period. Institutional investors own 55.37% of the company's stock.

About Pembina Pipeline

Pembina Pipeline Corporation NYSE: PBA is a North American energy infrastructure company that develops, owns and operates midstream assets that transport, store and process hydrocarbons. Its core business focuses on the transportation of crude oil, natural gas liquids (NGLs) and condensate, along with gas processing, fractionation, storage and related marketing services. Pembina serves producers, refiners and other energy companies by providing pipeline capacity, terminal services and midstream solutions that link upstream production to downstream markets and export facilities.

The company's asset base is concentrated in Western Canada, including major operations in Alberta and British Columbia, and it also has operations and commercial activities that extend into the United States.

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