Is The Better Dividend Stock: AmeriGas or Its General Partner UGI Corporation?

AmeriGas Partners LP (APU) and UGI Corp (UGI) have a lot in common.

As an MLP, AmeriGas' corporate structure is split into limited partners and a general partner.

UGI is the sole General Partner-and owns 26%--of AmeriGas.

Both pay dividends to shareholders. But when it comes to dividends, this is where their differences become apparent.

UGI is a Dividend Aristocrat, which refers to companies in the S&P 500 that have raised dividends for 25+ years.

You can see the entire list of Dividend Aristocrats here.

Meanwhile, AmeriGas is a Dividend Achiever, one of 271 stocks with 10+ years of consecutive dividend increases.

You can see the full Dividend Achievers List here.

UGI has a much longer history of dividend increases, but AmeriGas has a much higher dividend yield.

This article will discuss the key differences between AmeriGas and UGI.

Business Overview

Winner: UGI

UGI has several various operating subsidiaries.

It has a large regulated natural gas utility business, with more than 600,000 customers, as well as a midstream and marketing segment.

It also has a large international footprint, with operations in 16 countries in Europe.

Lastly, UGI has an energy services segment, which sells natural gas and electricity to residential and business customers.

Overall, approximately half of UGI's annual earnings come from natural gas, with the other half derived from propane.

Source: 2016 Investor Day Presentation, page 5

Last year, UGI reported adjusted earnings-per-share of $2.05, representing 2% growth from 2015.

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