Holly Energy Partners LP's Dividend Analysis
Assessing the Sustainability, Performance, and Future Prospects of HEP's Dividends
Holly Energy Partners LP (NYSE:HEP) recently announced a dividend of $0.35 per share, payable on 2023-11-10, with the ex-dividend date set for 2023-10-27. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. This article will delve into Holly Energy Partners LP's dividend performance and sustainability using the data from GuruFocus.
Overview of Holly Energy Partners LP
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Holly Energy Partners LP operates a network of refined products and crude oil pipelines, along with terminal assets, in several western and southwestern states. The company's main revenue source is its Pipelines and Terminals segment, making it a significant player in the energy sector.
Tracing Holly Energy Partners LP's Dividend History
Since 2004, Holly Energy Partners LP has maintained a consistent dividend payment record, distributing dividends on a quarterly basis. The chart below illustrates the annual Dividends Per Share for historical trends tracking.
Dissecting Holly Energy Partners LP's Dividend Yield and Growth
As of today, Holly Energy Partners LP boasts a 12-month trailing dividend yield and a 12-month forward dividend yield of 6.68%. This indicates an expectation of consistent dividend payments over the next 12 months.
Over the past three years, Holly Energy Partners LP's annual dividend growth rate was -19.50%. This rate increases to -13.90% per year when extended to a five-year horizon. Over the past decade, the company's annual dividends per share growth rate stands at -2.30%. Consequently, the 5-year yield on cost of Holly Energy Partners LP stock is approximately 3.16% as of today.
Evaluating the Sustainability of Holly Energy Partners LP's Dividends
The sustainability of a company's dividends can be assessed by examining its payout ratio. The dividend payout ratio of Holly Energy Partners LP as of 2023-06-30 is 0.81. This high ratio may suggest that the company's dividend may not be sustainable in the long run.
Holly Energy Partners LP's profitability rank of 7 out of 10, coupled with its consistent positive net income over the past decade, suggests good profitability prospects.
Future Prospects: Holly Energy Partners LP's Growth Metrics
Holly Energy Partners LP's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. However, the company's average 3-year revenue growth rate of -4.00% and 3-year EPS growth rate of -6.00% underperform approximately 77.03% and 75.32% of global competitors, respectively. Additionally, the company's 5-year EBITDA growth rate of -2.90% underperforms approximately 76.6% of global competitors.
Concluding Thoughts
While Holly Energy Partners LP maintains a consistent dividend payment record and exhibits good profitability, its high payout ratio and underperforming growth rates raise concerns about the sustainability of its dividends. Investors should closely monitor these factors to make informed decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
