Atlas Pipeline continues dividend: stock falls

Posted by Tim
October 29, 2008

Atlas Pipeline Partners (APL: 7.97 +0.64 +8.73%) 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: 5.19 +1.01 +24.16%) 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: 15.02 +1.22 +8.84%) and Atlas America (ATLS: 16.71 +0.63 +3.92%) 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.

More on this topic (What's this?)
10 by 10: A New Way to Look at Yield and Dividend Growth (Dividend Growth Investor, 11/19/08)
Dividend ETF’s for busy investors (Dividend Growth Investor, 11/13/08)
Atlas Pipeline's Processing Problems (Prudent Speculations, 10/30/08)
Read more on Atlas Pipeline Partners, L.P., Atlas Pipeline Holdings, L.P., Dividends at Wikinvest
Energy, Income

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.

Comments
Comment by Dividend Growth Investor on November 4, 2008 @ 4:29 pm

Tim,

I like your commentary. However when I try to check out your income portfolio page, the page is blank.

Leave a comment

(required)

(required)