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

Plains All American Pipeline, L.P. (NYSE:PAA) announced a quarterly dividend on Tuesday, January 7th,Wall Street Journal reports. Shareholders of record on Friday, January 31st will be given a dividend of 0.38 per share by the pipeline company on Friday, February 14th. This represents a $1.52 annualized dividend and a yield of 7.41%. The ex-dividend date of this dividend 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 by an average of 20.8% annually over the last three years. Plains All American Pipeline has a dividend payout ratio of 100.7% indicating that 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 All American Pipeline to earn $1.39 per share next year, which means the company may not be able to cover its $1.52 annual dividend with an expected future payout ratio of 109.4%.

Plains All American Pipeline Stock Performance

Shares of Plains All American Pipeline stock opened at $20.52 on Wednesday. The business’s fifty day simple moving average is $18.20 and its 200-day simple moving average is $17.80. The company has a quick ratio of 0.92, a current ratio of 1.01 and a debt-to-equity ratio of 0.64. The firm has a market cap of $14.44 billion, a PE ratio of 13.64 and a beta of 1.64. Plains All American Pipeline has a 52 week low of $15.02 and a 52 week high of $21.00.

Plains All American Pipeline (NYSE:PAA) last announced its earnings results on Friday, November 8th. The pipeline company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.06. The company had revenue of $12.74 billion during the quarter, compared to analyst estimates of $13.09 billion. Plains All American Pipeline had a net margin of 2.08% and a return on equity of 11.63%. Plains All American Pipeline’s revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.35 earnings per share. Equities analysts forecast that Plains All American Pipeline will post 1.17 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research firms have commented on PAA. Morgan Stanley cut Plains All American Pipeline from an “overweight” rating to an “equal weight” rating and decreased their price target for the stock from $22.00 to $19.00 in a research note on Friday, October 25th. Royal Bank of Canada reissued a “sector perform” rating and set a $19.00 target price on shares of Plains All American Pipeline in a research note on Friday, November 15th. Raymond James lifted their target price on Plains All American Pipeline from $23.00 to $24.00 and gave the company a “strong-buy” rating in a research report on Tuesday. Barclays increased their price target on shares of Plains All American Pipeline from $18.00 to $19.00 and gave the stock an “underweight” rating in a research report on Thursday, January 16th. Finally, Wells Fargo & Company cut shares of Plains All American Pipeline from an “overweight” rating to an “equal weight” rating and dropped their price objective for the company from $22.00 to $20.00 in a report on Wednesday, December 18th. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, Plains All American Pipeline has an average rating of “Hold” and an average price target of $20.21.

Plains All American Pipeline Company Profile

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.