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 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 8.12%. The ex-dividend date of this dividend is Friday, January 31st. This is an increase 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% per year over the last three years. Plains All American Pipeline has a payout ratio of 86.4% meaning 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 Price Performance

Shares of PAA stock traded up $1.08 on Wednesday, reaching $18.71. 7,520,277 shares of the company were exchanged, compared to its average volume of 4,725,882. Plains All American Pipeline has a 1 year low of $15.02 and a 1 year high of $19.17. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.92 and a current ratio of 1.01. The business has a 50-day moving average price of $17.44 and a 200 day moving average price of $17.66. The company has a market cap of $13.17 billion, a price-to-earnings ratio of 16.71 and a beta of 1.64.

Plains All American Pipeline (NYSE:PAA) last posted its quarterly earnings data on Friday, November 8th. The pipeline company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.31 by $0.06. Plains All American Pipeline had a return on equity of 11.63% and a net margin of 2.08%. The firm had revenue of $12.74 billion during the quarter, compared to the consensus estimate of $13.09 billion. During the same period in the prior year, the company earned $0.35 EPS. The firm’s revenue was up 5.6% compared to the same quarter last year. Equities research analysts forecast that Plains All American Pipeline will post 1.24 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

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

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.