39 companies are linked to the industry of which 37 pay dividends. Combined they have a total market capitalization of USD 800 billion. Nearly 60 percent of the industry players have a yield over 5 percent and some have a really great dividend history. Thanks to the share gas boom it’s now possible that more pipeline infrastructure is needed. The average industry yield amounts to 4.72% and the P/E ratio is 33.40.
You should have seen some interesting pipeline companies on my blog in the past. Normally I am no fan of real estate companies because of the huge amounts of money they need for growing. But pipeline operators look different. They pay huge dividends and have the ability to grow dividends year over year. Their business model works but I don’t know how long. Pipeline operators are better than real estate stocks but it could be possible that the time brings some changes, especially when the energy demand and supply is changing.
Oil and gas pipeline stocks are real asset companies and they have a huge leverage on their balance sheet. The average industry long-term debt to equity ratio is over 123 percent but as long as revenue and cash flow streams are stable, this figure is still healthy.
Linked is a list of all higher capitalized oil and gas pipeline operators (over USD 2 billion market cap) with a yield over 5 percent. Seventeen stocks fulfilled these criteria of which eight have a current buy or better recommendation.
Here are my favorite stocks:
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Boardwalk Pipeline Partners (NYSE:BWP) has a market capitalization of $6.38 billion. The company employs 1,200 people, generates revenue of $1.185 billion and has a net income of $306.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $726.10 million. The EBITDA margin is 61.27 percent (the operating margin is 39.98 percent and the net profit margin 25.82 percent).
Financial Analysis: The total debt represents 45.01 percent of the company’s assets and the total debt in relation to the equity amounts to 91.28 percent. Due to the financial situation, a return on equity of 7.43 percent was realized. Twelve trailing months earnings per share reached a value of $1.28. Last fiscal year, the company paid $2.13 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.67, the P/S ratio is 5.38 and the P/B ratio is finally 1.68. The dividend yield amounts to 7.70 percent and the beta ratio has a value of 0.24.
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| Long-Term Stock History Chart Of Boardwalk Pipeline Partners (BWP) |
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| Long-Term Dividends History of Boardwalk Pipeline Partners (BWP) |
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| Long-Term Dividend Yield History of Boardwalk Pipeline Partners (BWP) |
Atlas Pipeline Partners (NYSE:APL) has a market capitalization of $2.12 billion. The company employs 350 people, generates revenue of $1.246 billion and has a net income of $68.06 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $193.70 million. The EBITDA margin is 15.55 percent (the operating margin is 4.97 percent and the net profit margin 5.46 percent).
Financial Analysis: The total debt represents 38.49 percent of the company’s assets and the total debt in relation to the equity amounts to 76.66 percent. Due to the financial situation, a return on equity of 3.76 percent was realized. Twelve trailing months earnings per share reached a value of $0.94. Last fiscal year, the company paid $2.26 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 35.03, the P/S ratio is 1.70 and the P/B ratio is finally 1.41. The dividend yield amounts to 7.06 percent and the beta ratio has a value of 1.56.
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| Long-Term Stock History Chart Of Atlas Pipeline Partners (APL) |
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| Long-Term Dividends History of Atlas Pipeline Partners (APL) |
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| Long-Term Dividend Yield History of Atlas Pipeline Partners (APL) |
DCP Midstream Partners (NYSE:DPM) has a market capitalization of $3.24 billion. The company employs 334 people, generates revenue of $2.358 billion and has a net income of $139.60 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $260.30 million. The EBITDA margin is 11.04 percent (the operating margin is 6.42 percent and the net profit margin 5.92 percent).
Financial Analysis: The total debt represents 39.23 percent of the company’s assets and the total debt in relation to the equity amounts to 118.82 percent. Due to the financial situation, a return on equity of 11.84 percent was realized. Twelve trailing months earnings per share reached a value of $1.24. Last fiscal year, the company paid $2.52 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 36.02, the P/S ratio is 1.37 and the P/B ratio is finally 3.17. The dividend yield amounts to 6.16 percent and the beta ratio has a value of 1.14.
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| Long-Term Stock History Chart Of DCP Midstream Partners (DPM) |
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| Long-Term Dividends History of DCP Midstream Partners (DPM) |
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| Long-Term Dividend Yield History of DCP Midstream Partners (DPM) |
Kinder Morgan Energy Partners (NYSE:KMP) has a market capitalization of $32.07 billion. The company employs 10,685 people, generates revenue of $8.642 billion and has a net income of $2.025 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.428 billion. The EBITDA margin is 39.67 percent (the operating margin is 27.08 percent and the net profit margin 23.43 percent).
Financial Analysis: The total debt represents 54.13 percent of the company’s assets and the total debt in relation to the equity amounts to 153.43 percent. Due to the financial situation, a return on equity of 7.34 percent was realized. Twelve trailing months earnings per share reached a value of $1.65. Last fiscal year, the company paid $4.98 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 52.21, the P/S ratio is 3.77 and the P/B ratio is finally 3.79. The dividend yield amounts to 6.00 percent and the beta ratio has a value of 0.40.
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| Long-Term Stock History Chart Of Kinder Morgan Energy Partners (KMP) |
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| Long-Term Dividends History of Kinder Morgan Energy Partners (KMP) |
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| Long-Term Dividend Yield History of Kinder Morgan Energy Partners (KMP) |
Take a closer look at the full list of the best yielding oil and gas pipeline stocks. The average P/E ratio amounts to 32.24
and forward P/E ratio is 22.35. The dividend yield has a value of 6.75 percent.
Price to book ratio is 2.46 and price to sales ratio 4.39. The operating margin
amounts to 18.45 percent and the beta ratio is 0.70. Stocks from the list have
an average debt to equity ratio of 1.17.
Here is the full table with
some fundamentals (TTM):
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| 17 Highest Dividend Paying Oil and Gas Pipeline Stocks (Click to enlarge) |
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Related stock
ticker symbols:
NS, RGP, BWP,
EEP, ETP, APL, BPL, CQP, NRGM, TCP, NGLS, DPM, CPNO, KMP, EPB, PBA, OKS
Selected Articles:
*I
have no positions in any stocks mentioned, and no plans to initiate any
positions within the next 72 hours. I receive no compensation to write about
any specific stock, sector or theme.
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