AmeriGas Partners (APU), the US largest propane marketer, is in fourth place in terms of three-year total returns among MLPs. APU has returned 27.5% over the last three years despite the 6% decline in its stock price in 2017 year-to-date.
Overall, APU’s price has risen just 0.1% over the last three years through October 13, 2017. APU’s strong total returns despite its weak market performance could be attributed to its robust distribution yield of 8.5%.
Distribution growth and guidance
AmeriGas Partners declared a distribution of $0.95 per unit for 3Q17, which represents a 1.1% increase compared to 3Q16. For an in-depth analysis on propane MLPs, including their valuations and analysts’ recommendations, please read APU, FGP, SPH, and SGU: Analyzing Prospects for the Propane MLPs.
In the next article, we’ll look into total returns for Dominion Energy Midstream Partners (DM).