Thursday, June 4, 2015

WATCHLIST : APU - Steady growing Dividend

AmeriGas Partners LP (NYSE:APU) is a stock that came across my screener because of its high dividend, growth of its chart, P/E ratio, and years paying dividends.

About the Company

From AmeriGas' website:
"AmeriGas is the nation's largest propane company, serving over 2 million residential, commercial, industrial, agricultural and motor fuel propane customers from over 2,500 distribution locations in all 50 states."

 They are currently 8th in Market Cap for Gas Utilities out of 26 companies.

Facts (according to FinViz.com):

  • P/E : 48.74
  • Forward P/E: 16.59
  • Dividend: $3.68 per year (7.6% current yield)
  • Years Paying Dividend: 19

The overall stock price has had an impressive run since 2007:

(Photo courtesy of FinViz.com)

The dividend increases have been steady as well since 2005:


An article I found on Yahoo states the following: 
"The US Energy Information Administration (or EIA), in its February STEO, predicts households in the Midwest this year will spend 35% less on propane than last winter. This is a result of prices being 27% lower than last winter." (Link)

So this could be a concern as we move through summer into the Fall, but the stock seems to be holding up well currently. I would watch the 200 day moving average around $41 to see if it bounces or goes below. If it goes below, you can always average down.

Also, they just received a downgrade to Neutral from UBS on May 6. That may be a sign that the stock is getting overextended a due for a pullback. The chart indicates such as well and in fact it has been doing that the last couple of days.

Alternatives to APU include: SPH, OKE, GAS


  1. Adam,

    What's not to love about propane? I have owned shares for about a year now and I like the yield and the distribution growth. I think the recent interest rate "panic" may put some pressure on the share price as well. If so I will gladly add to my position.


    1. Hi MDP, thanks for your comment. Glad to hear someone else in the community has their eye on it. Had a nice bounce today with most of the market down. I really like it the more i read about it.