Plains All American: The Dividend Story Has Strengthened After Q1 Report

Roberts Berzins, CFA
10.21K Followers
(8min)

Summary

  • In my latest article on Plains All American, I made it clear that PAA is mostly a dividend play rather than an investment from which we could expect strong price appreciation.
  • So far, the stock price has dropped, while the underlying fundamentals have become more supportive for a juicy dividend case.
  • In this article, I assess the details of Q1 earnings report and justify why, in my opinion, PAA is an enticing investment case for investors, who seek high and de-risked yield.

Aerial view of petroleum terminal

thexfilephoto

April this year, I issued an article on Plains All American (NASDAQ:PAA) - Plains All American: A Buy Despite Recent Outperformance - where my thesis was bullish and focused on capturing steadily growing and increasingly more protected dividends.

These

This article was written by

10.21K Followers
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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