Westlake Chemical Partners LP (NYSE:WLKP) Announces $0.47 Quarterly Dividend

Key Points

• Westlake Chemical Partners LP has declared a quarterly dividend of $0.47 per share, with an ex-dividend date of August 12. The dividend represents an annualized yield of 8.6%.
• The company has a high dividend payout ratio of 93.1%, which may pose a risk of unsustainable dividends if earnings decline, as projected earnings suggest a future payout ratio of 111.2%.
• Westlake Chemical Partners recently missed earnings expectations with a reported $0.14 EPS versus the consensus estimate of $0.38, highlighting potential challenges for the company moving forward.

Westlake Chemical Partners LP (NYSE:WLKP - Get Free Report) announced a quarterly dividend on Thursday, July 31st, Wall Street Journal reports. Investors of record on Tuesday, August 12th will be given a dividend of 0.4714 per share by the basic materials company on Wednesday, August 27th. This represents a c) annualized dividend and a yield of 8.6%. The ex-dividend date is Tuesday, August 12th.

Westlake Chemical Partners has a dividend payout ratio of 93.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Research analysts expect Westlake Chemical Partners to earn $1.70 per share next year, which means the company may not be able to cover its $1.89 annual dividend with an expected future payout ratio of 111.2%.

Westlake Chemical Partners Trading Up 0.7%

NYSE:WLKP traded up $0.15 during trading hours on Monday, hitting $21.97. The company had a trading volume of 6,957 shares, compared to its average volume of 34,045. Westlake Chemical Partners has a 52 week low of $21.19 and a 52 week high of $25.04. The company has a market capitalization of $774.26 million, a PE ratio of 14.75 and a beta of 0.78. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.37 and a quick ratio of 1.35. The stock has a 50-day moving average price of $22.16 and a 200 day moving average price of $23.01.

Westlake Chemical Partners (NYSE:WLKP - Get Free Report) last issued its quarterly earnings results on Friday, May 2nd. The basic materials company reported $0.14 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.38 by ($0.24). Westlake Chemical Partners had a net margin of 4.82% and a return on equity of 6.35%. The business had revenue of $237.63 million for the quarter, compared to analysts' expectations of $296.00 million. On average, equities research analysts predict that Westlake Chemical Partners will post 1.55 EPS for the current fiscal year.

Insider Transactions at Westlake Chemical Partners

In other Westlake Chemical Partners news, Chairman James Chao sold 5,608 shares of Westlake Chemical Partners stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $22.17, for a total value of $124,329.36. Following the completion of the transaction, the chairman directly owned 8,300 shares of the company's stock, valued at approximately $184,011. The trade was a 40.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders have sold 13,908 shares of company stock valued at $307,759 over the last three months. 1.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Fractal Investments LLC purchased a new position in shares of Westlake Chemical Partners during the first quarter valued at approximately $1,856,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Westlake Chemical Partners by 5.4% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 558,919 shares of the basic materials company's stock valued at $12,933,000 after purchasing an additional 28,430 shares during the last quarter. Raymond James Financial Inc. purchased a new position in shares of Westlake Chemical Partners during the fourth quarter valued at approximately $456,000. U.S. Capital Wealth Advisors LLC purchased a new stake in Westlake Chemical Partners during the first quarter valued at approximately $231,000. Finally, Goldman Sachs Group Inc. increased its holdings in Westlake Chemical Partners by 3.8% during the first quarter. Goldman Sachs Group Inc. now owns 228,885 shares of the basic materials company's stock valued at $5,285,000 after buying an additional 8,424 shares during the last quarter. 78.28% of the stock is owned by hedge funds and other institutional investors.

Westlake Chemical Partners Company Profile

Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. The company's ethylene production facilities primarily convert ethane into ethylene. It also sells ethylene co-products, such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis.