Atlas Pipeline Continues Dividend But Stock Falls

Atlas Pipeline Partners (APL) has declared a 3rd quarter dividend of 96¢, matching the 2nd quarter payout. In the two trading days since the announcement the share price has dropped almost 15%. This has me quite confused. I would understand if the market was pricing the stock at a 7% yield and the price falls because the dividend did not increase, but at $19 APL is yielding 19%. Even more incredible, Atlas Pipeline Holdings (AHD) increased the dividend from 42¢ to 51¢ and that stock is off 20% to yield over 20%.  AHD operates the general partner interest in APL, receives the GP incentives and holds over 5 million units of APL.

APL, AHD, Atlas Energy (ATN) and Atlas America (ATLS) report earnings Monday, Tuesday and Friday next week. I will be paying close attention to try to find out why the market does not like these companies. I believe they are among the best managed in the natural gas arena and have some unique factors going for them.

APL is a component of this site’s hypothetical Income Portfolio. ATN is in the Opportunities Portfolio.

Subscribe by RSS Subscribe by Email