Pembina Pipeline Co. (NYSE:PBA) Announces Dividend Increase – $0.69 Per Share

Pembina Pipeline Co. (NYSE:PBA) (TSE:PPL) announced a quarterly dividend on Tuesday, November 5th, RTT News reports. Shareholders of record on Monday, December 16th will be given a dividend of 0.69 per share by the pipeline company on Tuesday, December 31st. This represents a $2.76 dividend on an annualized basis and a yield of 6.88%. This is a boost from Pembina Pipeline’s previous quarterly dividend of $0.50.

Pembina Pipeline has raised its dividend by an average of 1.8% annually over the last three years. Pembina Pipeline has a payout ratio of 85.8% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Research analysts expect Pembina Pipeline to earn $2.45 per share next year, which means the company should continue to be able to cover its $2.05 annual dividend with an expected future payout ratio of 83.7%.

Pembina Pipeline Price Performance

Shares of Pembina Pipeline stock traded down $2.12 on Wednesday, reaching $40.13. 259,612 shares of the stock were exchanged, compared to its average volume of 1,109,489. The firm’s 50 day moving average is $41.58 and its 200-day moving average is $38.78. Pembina Pipeline has a one year low of $31.51 and a one year high of $43.44. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.55 and a current ratio of 0.68. The firm has a market cap of $23.29 billion, a PE ratio of 17.67 and a beta of 1.25.

Pembina Pipeline (NYSE:PBA) (TSE:PPL) last issued its quarterly earnings results on Thursday, August 8th. The pipeline company reported $0.75 earnings per share for the quarter, topping analysts’ consensus estimates of $0.54 by $0.21. The company had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.44 billion. Pembina Pipeline had a net margin of 23.50% and a return on equity of 13.68%. The firm’s quarterly revenue was up 30.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.45 EPS. As a group, analysts anticipate that Pembina Pipeline will post 2.38 EPS for the current fiscal year.

Analyst Ratings Changes

PBA has been the topic of several research analyst reports. Raymond James started coverage on shares of Pembina Pipeline in a research note on Friday, October 11th. They set an “outperform” rating on the stock. UBS Group started coverage on shares of Pembina Pipeline in a research note on Wednesday, September 11th. They issued a “neutral” rating on the stock. Finally, Citigroup raised their price objective on shares of Pembina Pipeline from $53.00 to $56.00 and gave the company a “neutral” rating in a research note on Wednesday, August 28th. Four analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. According to MarketBeat.com, Pembina Pipeline currently has a consensus rating of “Hold” and an average price target of $56.50.

About Pembina Pipeline

Pembina Pipeline Corporation provides energy transportation and midstream services. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 2.9 millions of barrels of oil equivalent per day, the ground storage capacity of 10 millions of barrels, and rail terminalling capacity of approximately 105 thousands of barrels of oil equivalent per day serving markets and basins across North America.