NasdaqGS:PAAOil and Gas
How Plains All American’s Dividend Hike and NGL Sale At Plains All American Pipeline (PAA) Has Changed Its Investment Story
Plains All American Pipeline recently agreed to sell its Canadian natural gas liquids assets and lifted its quarterly dividend by 10% to US$0.4175 per unit, aiming to increase the share of fee-based income to about 85% and improve cash flow predictability.
While the sale is intended to lower leverage and sharpen the focus on steadier earnings, the dividend now sits on a payout ratio slightly above 100%, raising fresh questions about how secure that higher income stream may be.
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