Spectra Energy increased its dividends
On January 5, 2016, Spectra Energy (SE) increased its quarterly dividends from $0.37 per share to $0.41 per share. This represents a quarter-over-quarter rise of 9.5%. The company hadn’t increased its dividends for the last four quarters. The stock closed 1.7% higher on the day of the announcement.
Spectra Energy rose by 11% since the beginning of 2016. In comparison, other midstream energy companies including ONEOK (OKE), Enbridge Energy Partners (EEP), and Energy Transfer Partners (ETP) fell by 6%, 29%, and 16%, respectively, in the same period. The Alerian MLP ETF (AMLP) fell by 19% since the beginning of 2016. A 9.5% rise in quarterly dividends possibly supported Spectra Energy’s stock price in 2016 when the energy midstream sector fell broadly.
Historic price performance
As the above graph shows, Spectra Energy fell 19% over the past year. Its first and second quarter results in May and August 2015, respectively, didn’t stop its downward slide. It continued to follow energy commodity prices. A flat dividend announcement for the third quarter on October 8 also contributed to its fall.
Combined with falling oil prices, Spectra Energy’s third quarter results brought the stock down. It announced the results on November 4, 2015. The company announced a 10% fall in its year-over-year EBITDA for the quarter.
Next, we’ll discuss Wall Street analysts’ recommendations and price targets for Spectra Energy before to its 4Q15 earnings release.