Current Report: Suburban Propane May Gain 13.67% In Price This Year

The company was founded in 1928 and is headquartered in Whippany, NJ.

Suburban Propane Partners LP (SPH) markets and distributes propane, renewable propane, fuel oil, and refined fuels to residential and commercial customers. 

Three key data points gauge SPH (or any dividend paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

SPH Price

Suburban’s single share price rose  $1.70 (or about 9.25%) from $18.38 to $19.08 in the past year, per Tuesday’s opening market report.

Two analysts cover the stock. Their consensus target price is almost $2.08 lower than the $19.08 recent price. However, 3 years of price history shows an average  $1.31 annual price gain which I’ll use for an annual return; after I discuss dividends.  

SPH Dividends

Suburban Propane has paid quarterly dividends since August,1996.

The most recent Q dividend of $0.325 was paid May 12th (to shareholders on record as of May 5th) and the resulting annual $1.30 annual payout yields a forward looking 6.80% (per Tuesday’s opening market report.}

SPH Returns

Putting it all together, as of June 9th, a possible gross gain of $2.61 was projected. The $1.31 per share estimated annual gain was added to the $1.30 forward looking annual dividend.

A little under $1000 invested in SPH at Tuesday’s $19.08 opening share price would buy 52 shares which multiply the $2.61 gross gain to $136.76 for the coming year, or 13.67%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is greater than the cost of one share.

SPH’s projected annual dividend from $1K invested is $68.00. So Suburban Propane58 shows a dividend from $1,000 invested of over 3.5 times its $19.08 single share price as of Tuesday’s market opening.

The exact track of SPH’s future share price and dividend will be decided by market action and company finances.  

Remember the best way to track stock performance and dividend payments is through direct ownership of company shares.