Plains All American Pipeline, L.P. (NYSE:PAA) Raises Dividend to $0.38 Per Share

Plains All American Pipeline, L.P. (NYSE:PAA) declared a quarterly dividend on Wednesday, January 8th,Wall Street Journal reports. Shareholders of record on Friday, January 31st will be paid a dividend of 0.38 per share by the pipeline company on Friday, February 14th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 8.12%. The ex-dividend date is Friday, January 31st. This is a boost from Plains All American Pipeline’s previous quarterly dividend of $0.32.

Plains All American Pipeline has increased its dividend payment by an average of 20.8% annually over the last three years. Plains All American Pipeline has a dividend payout ratio of 86.4% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Research analysts expect Plains All American Pipeline to earn $1.39 per share next year, which means the company should continue to be able to cover its $1.27 annual dividend with an expected future payout ratio of 91.4%.

Plains All American Pipeline Stock Up 6.2 %

NYSE PAA opened at $18.73 on Thursday. The stock has a market cap of $13.18 billion, a PE ratio of 16.72 and a beta of 1.64. The business has a 50 day moving average price of $17.48 and a two-hundred day moving average price of $17.66. Plains All American Pipeline has a fifty-two week low of $15.02 and a fifty-two week high of $19.17. The company has a quick ratio of 0.92, a current ratio of 1.01 and a debt-to-equity ratio of 0.64.

Plains All American Pipeline (NYSE:PAA) last released its quarterly earnings results on Friday, November 8th. The pipeline company reported $0.37 earnings per share for the quarter, beating analysts’ consensus estimates of $0.31 by $0.06. Plains All American Pipeline had a net margin of 2.08% and a return on equity of 11.63%. The business had revenue of $12.74 billion during the quarter, compared to analyst estimates of $13.09 billion. During the same period last year, the business earned $0.35 EPS. The business’s revenue was up 5.6% on a year-over-year basis. As a group, sell-side analysts predict that Plains All American Pipeline will post 1.24 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on PAA. Morgan Stanley lowered Plains All American Pipeline from an “overweight” rating to an “equal weight” rating and lowered their price objective for the company from $22.00 to $19.00 in a report on Friday, October 25th. Bank of America began coverage on Plains All American Pipeline in a research note on Thursday, October 17th. They set a “neutral” rating and a $18.00 price objective for the company. Royal Bank of Canada restated a “sector perform” rating and issued a $19.00 target price on shares of Plains All American Pipeline in a research report on Friday, November 15th. Finally, Wells Fargo & Company lowered Plains All American Pipeline from an “overweight” rating to an “equal weight” rating and reduced their price target for the stock from $22.00 to $20.00 in a research report on Wednesday, December 18th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $19.82.

About Plains All American Pipeline

Plains All American Pipeline, L.P., through its subsidiaries, engages in the pipeline transportation, terminaling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates through two segments, Crude Oil and NGL. The Crude Oil segment offers gathering and transporting crude oil through pipelines, gathering systems, trucks, and on barges or railcars.