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

Key Points

• Plains GP Holdings declared a quarterly dividend of $0.4175 per share, with the ex-dividend date and record date both on July 31 and payment scheduled for August 14.
• The dividend implies an annualized payout of about $1.67 per share and a 6.7% yield, but the company’s current payout ratio is 105%, indicating earnings do not fully cover the dividend at present.
• Analysts currently rate PAGP as a Hold overall, with a consensus price target of $23.00; the stock recently traded at $24.95, above that target.

Plains GP Holdings, L.P. (NYSE:PAGP - Get Free Report) declared a quarterly dividend on Monday, July 6th. Stockholders of record on Friday, July 31st will be given a dividend of 0.4175 per share by the pipeline company on Friday, August 14th. This represents a c) dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date is Friday, July 31st.

Plains GP has increased its dividend by an average of 0.1%per year over the last three years. Plains GP has a 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. Research 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 Stock Performance

PAGP stock traded up $0.30 during trading on Wednesday, reaching $24.95. 1,149,461 shares of the stock were exchanged, compared to its average volume of 1,857,740. Plains GP has a twelve month low of $16.68 and a twelve month high of $26.15. The company has a market capitalization of $4.94 billion, a P/E ratio of 47.08 and a beta of 0.45. The company has a current ratio of 1.01, a quick ratio of 0.92 and a debt-to-equity ratio of 0.49. The stock has a 50 day simple moving average of $24.27 and a 200-day simple moving average of $22.65.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. The Goldman Sachs Group upgraded shares of Plains GP from a "sell" rating to a "neutral" rating and increased their target price for the stock from $18.00 to $24.00 in a research report on Wednesday, June 3rd. Truist Financial started coverage on Plains GP in a research note on Tuesday, March 24th. They issued a "buy" rating and a $23.00 price objective for the company. US Capital Advisors lowered Plains GP from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, May 29th. Mizuho increased their price target on Plains GP from $25.00 to $27.00 and gave the company an "outperform" rating in a research report on Monday, June 8th. Finally, Barclays boosted their target price on Plains GP from $18.00 to $21.00 and gave the company an "underweight" rating in a research note on Friday, April 10th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $23.00.

Plains GP Company Profile

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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