Shell Midstream Partners LP (NYSE:SHLX) to Issue $0.46 Quarterly Dividend

Shell Midstream Partners LP (NYSE:SHLX) announced a quarterly dividend on Friday, July 24th, Wall Street Journal reports. Shareholders of record on Tuesday, August 4th will be given a dividend of 0.46 per share by the pipeline company on Friday, August 14th. This represents a $1.84 dividend on an annualized basis and a yield of 15.57%. The ex-dividend date is Monday, August 3rd.

Shell Midstream Partners has increased its dividend payment by an average of 74.5% annually over the last three years and has increased its dividend annually for the last 4 consecutive years. Shell Midstream Partners has a dividend payout ratio of 132.4% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Shell Midstream Partners to earn $1.37 per share next year, which means the company may not be able to cover its $1.84 annual dividend with an expected future payout ratio of 134.3%.

Shares of Shell Midstream Partners stock opened at $11.82 on Friday. The business has a 50-day simple moving average of $12.30 and a 200-day simple moving average of $14.28. Shell Midstream Partners has a one year low of $5.70 and a one year high of $22.70. The company has a market cap of $4.62 billion, a PE ratio of 7.53 and a beta of 1.82.

Shell Midstream Partners (NYSE:SHLX) last posted its quarterly earnings results on Friday, July 31st. The pipeline company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.33 by ($0.01). Shell Midstream Partners had a negative return on equity of 63.01% and a net margin of 97.36%. The firm had revenue of $120.00 million for the quarter, compared to analyst estimates of $141.97 million. During the same quarter last year, the firm earned $0.36 EPS. The company’s revenue was down .8% on a year-over-year basis. On average, analysts forecast that Shell Midstream Partners will post 1.24 EPS for the current year.

SHLX has been the topic of several recent analyst reports. Barclays began coverage on Shell Midstream Partners in a report on Thursday, June 4th. They issued an “equal weight” rating and a $15.00 target price on the stock. ValuEngine lowered Shell Midstream Partners from a “hold” rating to a “sell” rating in a research report on Tuesday, April 21st. Stifel Nicolaus decreased their target price on Shell Midstream Partners from $17.00 to $14.00 and set a “hold” rating for the company in a research note on Friday, May 8th. Royal Bank of Canada reiterated a “hold” rating on shares of Shell Midstream Partners in a research note on Wednesday, May 13th. Finally, Citigroup cut their price objective on shares of Shell Midstream Partners from $15.00 to $13.00 in a report on Monday, July 6th. Five investment analysts have rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $16.70.

About Shell Midstream Partners

Shell Midstream Partners, L.P. owns, operates, develops, and acquires pipelines and other midstream assets in the United States. It owns interests in crude oil and refined products pipelines and terminals to transport onshore and offshore crude oil production to Gulf Coast and Midwest refining markets.

Further Reading: Asset Allocation, Balancing Your Investments

Dividend History for Shell Midstream Partners (NYSE:SHLX)

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