■ Increase · August 17, 2026
Delek Logistics Partners Raises Distribution for 54th Straight Quarter
Delek Logistics Partners increased its quarterly distribution to $1.135 per share, marking the 54th consecutive quarterly raise. The company also announced a 4 million share offering at $50 per share.
Distribution Increase Continues
Delek Logistics Partners (NYSE: DKL) has raised its quarterly distribution to $1.135 per share, an increase of half a cent. This marks the third distribution increase in 2026 and the 54th consecutive quarter with a raise. The company's annual distribution now stands at $4.54 per share.
Share Offering and Market Reaction
On August 13, Delek Logistics announced a public offering of 4 million common units at $50 per unit. Underwriters have an option to purchase an additional 600,000 units within 30 days. The offering price was below the previous day's closing price of $60, leading to a nearly 13% drop in the stock price on the announcement day. The company's market capitalization is approximately $2.8 billion.
The company stated that proceeds from the offering will be used to repay outstanding debt, including debt with an interest rate of 6.05%, and for general partnership purposes.
Progress on Separation from Delek US
Delek Logistics has been gradually reducing its reliance on its parent company, Delek US Holdings (NYSE: DK). Four years ago, Delek US owned 79% of the logistics partnership; today, that ownership is around 63%. Management reiterated that it expects 80% of 2026 EBITDA to come from third-party customers, indicating continued progress in the separation.
Despite the recent share price decline, Delek Logistics stock is up 17.2% year-to-date. The current dividend yield is approximately 7.7% based on the recent price.
What it means for income investors
The distribution increase and the company's long track record of quarterly raises highlight its commitment to returning cash to unitholders. However, the recent share offering introduces near-term dilution, which may affect the stock's performance. Income-focused investors may want to monitor the company's debt reduction progress and the ongoing separation from Delek US.
Reporting based on: The Motley Fool. Figures verified against market data where available.