Plains All American Pipeline (PAA and PAGP) Update - April 9

[dan_s]

I am finishing up my review of PAA and PAGP..

PAA was trading at $17.01 and PAGP is trading at $18.14 at the time of this post.

Yesterday (April 8) UBS and Morgan Stanley updated their price targets to $25 and $23.

PAA is a large-cap midstream company that has its pipelines full. It is not directly impacted by oil & gas prices. They are generating more than enough distributable cash flow to cover their dividends.
PAGP is a C-Corp. that is the general partner.
PAA and PAGP pay identical dividend, which today are $0.38/quarter for annualized yield of 8.9% for PAA and 8.4% for PAGP.

Based on my forecast and recent comments from PAA, I expect them to increase dividends later this year to $0.44/share.

My current valuations are $23 for both PAA and PAGP.