Atlas Pipeline continues dividend: stock falls

Posted by Tim
October 29, 2008

Atlas Pipeline Partners (APL: 7.90 +0.21 +2.73%) 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: 3.34 -0.16 -4.57%) 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: 19.81 -0.56 -2.75%) and Atlas America (ATLS: 17.26 -0.63 -3.52%) 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?)
The Top 40 Dividend Stocks for 2009 book review (Dividend Growth Investor, 5/15/09)
Atlas Pipeline's Processing Problems (Prudent Speculations, 10/30/08)
Eight Dividend Increases in the News (Dividend Growth Investor, 5/18/09)
Read more on Atlas Pipeline Partners, L.P., Atlas Pipeline Holdings, L.P., Dividends at Wikinvest
Energy, Income

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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.

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