Hess Midstream LP (NYSE:HESM) Plans Dividend Increase – $0.70 Per Share

Hess Midstream LP (NYSE:HESM) announced a quarterly dividend on Monday, January 27th,Wall Street Journal reports. Shareholders of record on Thursday, February 6th will be paid a dividend of 0.7012 per share on Friday, February 14th. This represents a $2.80 annualized dividend and a yield of 6.85%. The ex-dividend date of this dividend is Thursday, February 6th. This is an increase from Hess Midstream’s previous quarterly dividend of $0.68.

Hess Midstream has raised its dividend by an average of 11.3% annually over the last three years. Hess Midstream has a dividend payout ratio of 77.8% 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 Hess Midstream to earn $2.67 per share next year, which means the company may not be able to cover its $2.74 annual dividend with an expected future payout ratio of 102.6%.

Hess Midstream Stock Up 1.9 %

Shares of NYSE:HESM traded up $0.78 during trading on Tuesday, hitting $40.97. The stock had a trading volume of 801,420 shares, compared to its average volume of 848,848. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 7.85. Hess Midstream has a 12 month low of $32.15 and a 12 month high of $41.61. The company has a market capitalization of $8.93 billion, a PE ratio of 17.36 and a beta of 1.52. The firm’s fifty day moving average is $37.71 and its 200 day moving average is $36.71.

Hess Midstream (NYSE:HESM) last issued its quarterly earnings results on Wednesday, October 30th. The company reported $0.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.58 by $0.05. The company had revenue of $378.50 million during the quarter, compared to analysts’ expectations of $376.98 million. Hess Midstream had a net margin of 13.06% and a return on equity of 47.87%. Hess Midstream’s revenue was up 4.2% on a year-over-year basis. During the same period last year, the company posted $0.57 EPS. Analysts anticipate that Hess Midstream will post 2.41 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Separately, Raymond James boosted their price objective on shares of Hess Midstream from $42.00 to $45.00 and gave the stock an “outperform” rating in a report on Tuesday.

Insider Activity at Hess Midstream

In other Hess Midstream news, CFO Jonathan C. Stein sold 7,923 shares of the stock in a transaction on Monday, November 11th. The stock was sold at an average price of $35.32, for a total value of $279,840.36. Following the completion of the sale, the chief financial officer now owns 59,945 shares in the company, valued at approximately $2,117,257.40. This represents a 11.67 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website.

About Hess Midstream

Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities.