High Dividend Payout in a Struggling Economy

Western Midstream Partner's often paid it's shareholders a large dividend and is the most attractive aspect of this stock. Even amidst the oil crisis, Western Midstream was still able to supply a significant dividend announced early April - even though it was reduced in half. Why? Because of its rapid drop in the share price. As of now, the dividend is expected to be $0.31 or approximately 4.24% that has an ex-dividend date of April 29th. When this stock first caught my attention due to the dividend being announced, it was trading at $4.60. Thus, investors likely already priced in the dividend payout and its future assumptions for dividend payments. However, down from the mid-twenties from a year ago, with all-time highs of near sixty dollars, this stock still has a lot of upward potential. WES's rapid drop in share price mixed in with a large dividend payout announcement is the perfect combination for a bull rush. This is in combination with the rally in oil tankers and the opportunity to profit off of cheap oil. Aside from the opportunities, and the recent oil rush, this company's risks include a high debt to equity ratio and a low return on assets which gives rise to the low valuation.

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High Dividend Payout in a Struggling Economy

Apr 24, 2020

bullish

general Analysis

[1 min Read]

blog post cover photo
Western Midstream Partner's often paid it's shareholders a large dividend and is the most attractive aspect of this stock. Even amidst the oil crisis, Western Midstream was still able to supply a significant dividend announced early April - even though it was reduced in half. Why? Because of its rapid drop in the share price. As of now, the dividend is expected to be $0.31 or approximately 4.24% that has an ex-dividend date of April 29th. When this stock first caught my attention due to the dividend being announced, it was trading at $4.60. Thus, investors likely already priced in the dividend payout and its future assumptions for dividend payments. However, down from the mid-twenties from a year ago, with all-time highs of near sixty dollars, this stock still has a lot of upward potential. WES's rapid drop in share price mixed in with a large dividend payout announcement is the perfect combination for a bull rush. This is in combination with the rally in oil tankers and the opportunity to profit off of cheap oil. Aside from the opportunities, and the recent oil rush, this company's risks include a high debt to equity ratio and a low return on assets which gives rise to the low valuation.
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WES

Western Midstream Partners, LP

24.17

0.29
1.21%

Return

-
Position Return %
0.00
Position Return
7.30
Price When Posted

Metrics

15.00
Target Price
7/ 10
Confidence
< 1 Week
Timeframe
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Earnings Release
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News
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SEC
Filing
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Sentiment
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