Q1 2024 Midstream/MLP Dividends: Growth Story Intact

seekingalpha05-22

On a year-over-year basis, nearly 95% of the broad Alerian Midstream Energy Index (AMNA) by weighting has grown their dividends. No AMNA constituent has cut its dividend since July 2021.Dividend ...

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No AMNA constituent has cut its dividend since July 2021.Dividend ...</p>\n\n<a href=\"https://seekingalpha.com/article/4694938-q1-2024-midstream-mlp-dividends-growth-story-intact\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Q1 2024 Midstream/MLP Dividends: Growth Story Intact</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nQ1 2024 Midstream/MLP Dividends: Growth Story Intact\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-22 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4694938-q1-2024-midstream-mlp-dividends-growth-story-intact><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>On a year-over-year basis, nearly 95% of the broad Alerian Midstream Energy Index (AMNA) by weighting has grown their dividends. No AMNA constituent has cut its dividend since July 2021.Dividend ...</p>\n\n<a href=\"https://seekingalpha.com/article/4694938-q1-2024-midstream-mlp-dividends-growth-story-intact\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4566","symbol_name":"资本集团","start_time":0,"source_url":"https://seekingalpha.com/article/4694938-q1-2024-midstream-mlp-dividends-growth-story-intact","article_id":"2437096261","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1381376333/image_1381376333.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2437096261","pubTimestamp":1716379200,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"On a year-over-year basis, nearly 95% of the broad Alerian Midstream Energy Index (AMNA) by weighting has grown their dividends. No AMNA constituent has cut its dividend since July 2021.Dividend growt","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4566":"资本集团","WMB":"威廉姆斯","IE00BMG7P587.USD":"LEGG MASON CLEARBRIDGE GLOBAL INFRASTRUCTURE INCOM \"A\" (USD) INC","SUN":"太阳石油","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","AMJ":"JPMorgan Alerian MLP ETN","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","BK4588":"碎股","DTM":"DT MIDSTREAM INC","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","WES":"Western Midstream Operating, LP.","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","BK4561":"索罗斯持仓","HESM":"Hess Midstream Partners LP","MLPB":"ETRACS Alerian MLP Infrastructure Index ETN Series B","BK4581":"高盛持仓","AMJB":"ALERIAN MLP INDEX ETNS DUE JANUARY 28, 2044","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","MLPR":"ETRACS Quarterly Pay 1.5X Leveraged Alerian MLP Index ETN","BK4590":"PTP","BK4138":"石油与天然气的炼制和营销","IE00BMG7P819.SGD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis SGD-H Plus","IE00BMG7P926.USD":"Legg Mason ClearBridge - Global Infrastructure Income A Acc USD","ET":"Energy Transfer LP","AMLP":"Alerian MLP ETF","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","BK4024":"房地产开发","TRP":"TC Energy","AMNA":"ETRACS Alerian Midstream Energy Index ETN","LU0368265418.SGD":"Blackrock World Energy Fund A2 SGD-H","IE00BMG7P694.USD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis USD Plus","CQP":"Cheniere Energy Partners L.P.","BK4144":"石油与天然气的储存和运输","LU0122376428.USD":"贝莱德世界能源基金A2","TRGP":"Targa Resources Corp","BK4585":"ETF&股票定投概念","MLP":"毛伊岛菠萝食品","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","KMI":"金德尔摩根","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus"},"translate_title":"Q1 2024中游/MLP股息：增长故事完好无损","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMJB":1,"WMB":1,"WES":1,"TRP":1,"TRGP":1,"SUN":1,"MLPR":1,"MLPB":1,"MLP":1,"KMI":1,"HESM":1,"ET":1,"DTM":1,"AMJ":1,"AMLP":1,"AMNA":1,"CQP":1},"content_text":"On a year-over-year basis, nearly 95% of the broad Alerian Midstream Energy Index (AMNA) by weighting has grown their dividends. No AMNA constituent has cut its dividend since July 2021.Dividend growth enhances compelling yields for midstream/MLPs, which have consistently exceeded those of comparable income investments in recent years.The outlook for continued dividend growth is constructive, with several names providing long-term dividend growth guidance supported by expected free cash flow and EBITDA growth.   imaginima The first quarter of 2024 showcased continued financial strength for energy infrastructure companies and their commitment to returning excess cash flow to investors. Midstream/MLPs extended their dividend growth trend, and the long-term outlook for the midstream space remains constructive for income investors. Today’s note discusses 1Q24 dividends across Alerian midstream and MLP benchmark indexes, current yields compared to other income investments, and the outlook for continued growth. 1Q24 Sees Strong Sequential Growth Dividend growth trends remain intact for midstream companies so far in 2024, with a handful of names increasing their payouts for 1Q24. Leading the group, Western Midstream Partners (WES) and Targa Resources (TRGP) raised their quarterly dividends sequentially by 52% to $0.8750 per unit and 50% to $0.75 per share, respectively. These sizeable increases build upon solid growth in 2023, particularly for TRGP (read more). Albeit, these large percentage increases are feasible because both companies cut their payouts in 2020. Other names raised payouts sequentially by low-to-mid single-digit percentages. Examples include Energy Transfer (ET), Kinder Morgan (KMI), TC Energy (TRP), DT Midstream (DTM), and Hess Midstream (HESM). Sunoco LP (SUN) raised its distribution by 4% following the closing of the NuStar Energy acquisition. Importantly, no constituent of the broad Alerian Midstream Energy Index (AMNA) has cut its dividend since July 2021. That said, Cheniere Energy Partners (CQP) lowered the variable component of its distribution to preserve capital for the Sabine Pass expansion project, as discussed on Cheniere’s earnings call. The pie charts below show quarter-over-quarter changes to dividends for AMNA, the Alerian MLP Index (AMZ), and the Alerian MLP Infrastructure Index (AMZI) by comparing 1Q24 payouts to those made for 4Q23. To be clear, 1Q24 dividends refer to dividends paid in 2Q24 based on operational performance in 1Q24.  Year-Over-Year, Most Constituents Have Grown Payouts On a year-over-year basis, the majority of index constituents in AMNA, AMZ, and AMZI have grown their payouts. The bias towards growth is especially clear when looking at dividend growers by weighting. Nearly 95% of the broad benchmark AMNA by weighting have increased their dividends since 1Q23. For the MLP indexes AMZ and AMZI, 83.0% and 88.2% of the indexes by weighting have grown payouts over the past year, respectively. Larger companies tend to more commonly grow dividends and have higher weightings in these indexes. However, across all three indexes, more constituents have grown payouts year-over-year than maintained.  Dividend Growth Has Enhanced Midstream/MLP Yields Midstream/MLPs typically offer generous yields compared to other income investments, with dividend growth adding to the appeal of midstream/MLPs. Even with strong equity performance in recent years, midstream yields remain well above equity income investments such as REITs and Utilities. Even as interest rates rose beginning in 2022, MLPs consistently offered more compelling income (read more). As shown in the chart below, only high-yield bonds provide yields greater than midstream/MLPs.  Dividend Guidance Adds to a Constructive Outlook Several companies have announced multi-year dividend growth targets, providing visibility that supports a constructive outlook (read more). Canadian midstream corporation TRP has a long-term annual growth target of 3%-5%, while Williams Companies (WMB) plans to grow its dividend in line with core business adjusted EBITDA growth. HESM is targeting at least 5% distribution growth through 2026, while ET has an annual growth target for its distribution of 3-5%. Energy infrastructure companies can provide long-term dividend guidance given the predictability of cash flows as they invest in projects that generate stable fees. Companies are also expected to continue generating free cash flow. Stated targets can provide investors with greater confidence in continued dividend increases for midstream/MLPs. Bottom Line Compelling yields offered by midstream/MLPs in recent years have been complemented by solid dividend growth. Long-term free cash flow generation for the space underpinned by fee-based business models contributes to an overall constructive outlook for continued income growth for investors. AMZ is the underlying index for the JP Morgan Alerian MLP Index ETN (AMJ), which matures in May 2024, and the JPMCFC Alerian MLP Index ETN (AMJB), which matures in 2044. AMZ is also the underlying index for the ETRACS Quarterly Pay 1.5x Leveraged Alerian MLP Index ETN (MLPR). AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB). AMNA is the underlying index for the ETRACS Alerian Midstream Energy Index ETN (AMNA). Disclosure: © VettaFi LLC 2024. All rights reserved. This material has been prepared and/or issued by VettaFi LLC (\"VettaFi\") and/or one of its consultants or affiliates. It is provided as general information only and should not be taken as investment advice. Employees of VettaFi are prohibited from owning individual MLPs. For more information on VettaFi, visit VettaFi.  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