Midstream operator Pembina Pipeline (NYSE:PBA) announced today its monthly dividend for October of $0.14 per share, which is designated an "eligible dividend" for Canadian income tax purposes. For non-resident shareholders, Pembina's dividends are considered "qualified dividends," subject to Canada's withholding tax.
The October dividend for U.S. shareholders will be $0.1355 per share based on a currency exchange rate of 0.9680.
The board also said it was initiating a dividend of $0.3726 per share for the period starting July 26 and ending November 30 on Pembina's Series 1 cumulative redeemable rate reset Class A preferred shares and a dividend of $0.1932 per share for the period starting October 2 and ending November 30 on Pembina's Series 3 cumulative redeemable rate reset Class A preferred shares. These initial dividends are payable on December 1 to shareholders of record at the close of business on November 1.
Future dividends on the Series 1 preferred shares are expected to be $0.265625 per share and paid quarterly, or $1.0625 per share on an annualized basis, payable on the 1st day of March, June, September, and December for the initial fixed-rate period up to but excluding Dec. 1, 2018.
Future dividends on the Series 3 preferred shares are expected to be $0.29375 per share and paid quarterly, or $1.1750 per share on an annualized basis, payable on the 1st day of March, June, September, and December for the initial fixed rate period up to but excluding March 1, 2019.
The board of directors said the quarterly dividend is payable on November 15 to holders of record at the close of business on October 25. Pembina has paid monthly dividends since October 2010, and has increased them every year. The regular dividend payment equates to a $1.68-per-share annual dividend, yielding 5.3% based on the closing price today of Pembina Pipeline's stock.
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