Plains GP Holdings, L.P. (NYSE:PAGP) Declares Quarterly Dividend of $0.42

Key Points

• Plains GP declared a quarterly dividend of $0.4175 per share, payable May 15 to holders of record on May 1 (ex-dividend date May 1), implying a yield of about 7.1%.
• The dividend sustainability is a concern—Plains GP currently has a 105% payout ratio and is relying on its balance sheet to fund distributions, though analysts project $1.87 EPS next year which would lower the payout ratio to roughly 89%.
• Shares fell about 2.8% to $23.49, with a market cap of $4.65 billion and a trailing PE of about 44.3, reflecting elevated valuation despite the high yield.

Plains GP Holdings, L.P. (NYSE:PAGP - Get Free Report) announced a quarterly dividend on Monday, April 6th. Stockholders of record on Friday, May 1st will be given a dividend of 0.4175 per share by the pipeline company on Friday, May 15th. This represents a c) dividend on an annualized basis and a dividend yield of 7.1%. The ex-dividend date is Friday, May 1st.

Plains GP has increased its dividend payment by an average of 0.1%annually over the last three years. Plains GP has a dividend payout ratio of 105.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Plains GP to earn $1.87 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 89.3%.

Plains GP Trading Down 2.8%

Shares of PAGP stock traded down $0.67 on Wednesday, reaching $23.49. 4,027,481 shares of the stock were exchanged, compared to its average volume of 2,059,015. The stock has a 50 day moving average price of $22.65 and a 200 day moving average price of $19.95. The stock has a market cap of $4.65 billion, a PE ratio of 44.32 and a beta of 0.50. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.01 and a quick ratio of 0.92. Plains GP has a one year low of $16.60 and a one year high of $24.75.

About Plains GP

Plains GP Holdings, L.P. NYSE: PAGP serves as the general partner of Plains All American Pipeline, L.P., one of North America's leading energy infrastructure companies. Through its ownership of a 2% general partner interest and incentive distribution rights (IDRs), Plains GP Holdings participates in the governance and cash distribution structure of a diversified portfolio of crude oil and natural gas liquids gathering, transportation, storage, and terminaling assets.

The company's primary business activities include overseeing the strategic direction and capital allocation decisions for its affiliated midstream operations.

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