Current payout is $0.242 or $0.97 annualized. At $27.50 per share, that is a 3.5% yield. The typical MLP yield is 6.0%. This stock should be trading at $13.75 per share. What am I missing??
In answer to your specific question: you are missing the fact this is now a monthly dividend, not quarterly, as you mistakenly believe. Also, your calculations are wrong. if the average payout is 6 cents on the dollar, and the dividend was 97 cents/year, the calculated price would be $16.17. As you are off by a factor of 3 on the dividend, the calculated price would be, $48.51/share, using your method. Then again, you could just be trying to bash the stock...
Hey Re Re -- You should short this stock.
July 1, 2013
LINN Energy and LinnCo Announce Monthly Distribution and Dividend
HOUSTON, July 1, 2013 (GLOBE NEWSWIRE) -- LINN Energy, LLC (Nasdaq:LINE) and LinnCo, LLC (Nasdaq:LNCO) announced today distributions and dividends, respectively, for the month of April 2013.
LINN Energy, LLC declared a monthly cash distribution of $0.2416 per unit, or $2.90 per unit on an annualized basis, for all of its outstanding units. The distribution will be payable July 15, 2013, to unitholders of record as of the close of business on July 10, 2013.
LinnCo, LLC declared a monthly cash dividend of $0.2416 per common share, or $2.90 per share on an annualized basis, for all of its outstanding common shares. The dividend will be payable July 16, 2013, to shareholders of record as of the close of business on July 10, 2013.
Sentiment: Strong Buy
From the LINN web site: "Subject to approval of the distribution by the Board of Directors, LINN Energy is required to pay distributions within 45 days of the close of the quarter. The distribution payment and record dates are declared and announced via press release." Your div is quarterly. Better check your information source. I'll be back next month to see if the LINN share holders have gotten smarter.