Top Wall Street Analysts Share Insights on 3 Energy Stocks Offering Over 8% Dividend Yields
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Dividend-Yielding Stocks: Investors are increasingly turning to high dividend-yielding stocks during market uncertainty, with notable companies like Delek Logistics Partners (10.18% yield), Western Midstream Partners (9.28% yield), and Plains All American Pipeline (8.44% yield) receiving various analyst ratings and price target adjustments.
Analyst Ratings and Recent Performance: Analysts from firms like Mizuho and Morgan Stanley have provided mixed ratings and price target changes for these stocks, with Delek and Western Midstream posting weaker and stronger quarterly results, respectively, while Plains All American showed mixed results.
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Analyst Views on PAA
Wall Street analysts forecast PAA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAA is 20.19 USD with a low forecast of 16.50 USD and a high forecast of 23.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
3 Buy
4 Hold
1 Sell
Hold
Current: 19.730
Low
16.50
Averages
20.19
High
23.00
Current: 19.730
Low
16.50
Averages
20.19
High
23.00
About PAA
Plains All American Pipeline, L.P. owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids (NGL). It owns a network of pipeline gathering and transportation systems, in addition to terminalling, storage, processing, fractionation and other infrastructure assets serving key producing basins, transportation corridors and major market hubs and export outlets in the United States and Canada. Its Crude Oil segment operations consist of gathering and transporting crude oil using pipelines, gathering systems, trucks and at times on barges or railcars. Its assets provide services to third parties as well as to its merchant activities. Its NGL segment operations involve natural gas processing and NGL fractionation, storage, transportation and terminalling. NGL segment offers merchant activities include the acquisition of extraction rights from producers and/or shippers of the gas streams that pass through its Empress facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Energy Midstream Firms Show Significant Dividend Growth
- Delek Logistics Dividend Increase: Delek Logistics Partners declared a quarterly distribution of $1.125 per unit, a 0.4% increase from the previous quarter, extending its distribution growth streak to 52 consecutive quarters with a current yield of 9%, reflecting stable cash flows and financial flexibility.
- Hess Midstream Steady Growth: Hess Midstream's quarterly cash distribution is $0.7641 per share, a 1.2% increase from the prior quarter, with a cumulative dividend growth of 65% since 2021, and an expected annual increase of at least 5% through 2028, ensuring predictable cash flows.
- Plains All American Dividend Boost: Plains All American Pipeline announced a quarterly distribution of $0.4175 per unit, a 10% increase from its prior level, with a compound annual growth rate of 21% over the last four years, currently yielding 8.5%, demonstrating financial flexibility and ongoing investment capacity.
- High Yields Attract Investors: With yields between 8% and 9%, Delek Logistics, Hess Midstream, and Plains All American Pipeline regularly increase their payouts, making them appealing options for investors seeking stable passive income streams.
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Delek Logistics Extends Distribution Growth to 52 Quarters
- Delek Logistics Dividend Growth: Delek Logistics recently declared a quarterly distribution of $1.125 per unit (annualized $4.50), reflecting a 0.4% increase from the previous quarter, extending its distribution growth streak to 52 consecutive quarters while raising its yield to 9%.
- Hess Midstream Stable Cash Flow: Hess Midstream's quarterly cash distribution is $0.7641 per share, a 1.2% increase from the prior quarter, having raised its dividend by 65% since 2021, and expects at least 5% annual growth through 2028, ensuring predictable future cash flows.
- Plains All American Pipeline High Growth: Plains All American Pipeline announced a quarterly distribution of $0.4175 per unit (annualized $1.67), a 10% increase from the prior level, with a 21% compound annual growth rate over the last four years, pushing its yield to 8.5%.
- Energy Midstream Investment Opportunities: Delek Logistics, Hess Midstream, and Plains All American Pipeline currently offer yields between 8% and 9%, with all three companies regularly increasing their distributions, making them attractive options for investors seeking lucrative passive income streams.
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