Hess Midstream LP
HESMEnergy · Stock · quarterly payer
Forward Yield
7.71%
Annual Dividend
$3.09
Payout Ratio
105%
5-Yr Growth
10.8%
Ex-Date
Aug 6, 2026
Frequency
Quarterly
Summary
As of September 2026, Hess Midstream LP (HESM) yields 7.71% ($3.09 per share annually), with a blended fair-value estimate of $85.54 — +116% upside, so it screens as undervalued. Dividend safety grade: B (69/100). 8 years of dividend growth.
Is HESM a good dividend stock?
Yes, with caveatsHess Midstream LP (HESM) pays a quarterly dividend yielding 7.71% ($3.09/yr), with 8 years of growth and a dividend-safety grade of B. It's a solid income payer, but check the caveats below before buying.
Advantages
- Never cut its dividend on record
- Strong 10.8% 5-yr dividend growth
- 40% total price return over 5 years
Risks
- Elevated payout ratio (105%)
Key Data
- Dividend Yield
- 7.71%
- Payout Ratio
- 105%
- Annual Dividend
- $3.09
- 5-Yr Avg Growth
- 10.8%
- Ex-Dividend Date
- Aug 6, 2026
- Years of Growth
- 8
- Frequency
- quarterly
- Beta
- 0.50
- Market Cap
- $8.2B
- P/E Ratio
- 13.8
- 5-Yr Total Return
- 40%
- 52-Week Range
- $31.63 – $41.63
- Dividend Safety
- B · 69/100
- Ever Cut?
- No
Frequently Asked Questions
HESM Price — Last 12 Months
Daily close
Price Return
1 Year
+15%
3 Years
+36%
5 Years
+40%
52-Week Range
$31.63 – $41.63
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is HESM worth?
Undervaluedlow confidenceOur blended fair-value estimate for Hess Midstream LP is $85.54 per share, versus a market price of $39.56. That implies 116% of upside — a margin of safety of about 54%.
Fair Value
$85.54
Current Price
$39.56
Upside
+116%
Margin of Safety
54%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model 5.6% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.0% discount rate (CAPM), 5.6% stage-1 growth, 2.5% terminal growth, $2.88 EPS, $3.09 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
HESM Dividend Safety Score
Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Aug 6, 2026 | — | $0.7890 | regular |
| May 7, 2026 | — | $0.7790 | regular |
| Feb 5, 2026 | — | $0.7640 | regular |
| Nov 6, 2025 | — | $0.7550 | regular |
| Aug 7, 2025 | — | $0.7370 | regular |
| May 8, 2025 | — | $0.7100 | regular |
| Feb 6, 2025 | — | $0.7010 | regular |
| Nov 7, 2024 | — | $0.6850 | regular |
| Aug 8, 2024 | — | $0.6680 | regular |
| May 1, 2024 | — | $0.6520 | regular |
| Feb 7, 2024 | — | $0.6340 | regular |
| Nov 1, 2023 | — | $0.6180 | regular |
| Aug 2, 2023 | — | $0.6010 | regular |
| May 3, 2023 | — | $0.5850 | regular |
Income Calculator
At $3.09 / yr per share
