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Best-In-Class Energy Dividend Stocks

Jenifer Prater

The cyclicality of the energy industry makes it hard for income investors to find high yielding stocks. However, as oil prices recover from lows in 2014, energy stocks have benefited through increased profitability and cash flows. Consequently, dividend payment expectations have risen along with these companies’ profitability. I’ve made a list of other value-adding dividend-paying stocks in the energy industry for you to consider for your investment portfolio.

Holly Energy Partners, L.P. (NYSE:HEP)

HEP has a great dividend yield of 9.09% and their payout ratio stands at 105.10% . HEP’s dividends have increased in the last 10 years, with DPS increasing from US$1.47 to US$2.62. They have been dependable too, not missing a single payment in this time. Holly Energy Partners’s earnings per share growth of 151.67% over the past 12 months outpaced the us oil and gas industry’s average growth rate of 25.00%. More detail on Holly Energy Partners here.

NYSE:HEP Historical Dividend Yield May 29th 18

CVR Energy, Inc. (NYSE:CVI)

CVI has a large dividend yield of 4.59% and is distributing 62.36% of earnings as dividends . With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that CVI is in the top quartile of market payers. CVR Energy’s performance over the last 12 months beat the us oil and gas industry, with the company reporting 341.20% EPS growth compared to its industry’s figure of 25.00%. More detail on CVR Energy here.

NYSE:CVI Historical Dividend Yield May 29th 18

DCP Midstream, LP (NYSE:DCP)

DCP has a sumptuous dividend yield of 7.72% with a high payout ratio . DCP’s last dividend payment was US$3.12, up from it’s payment 10 years ago of US$2.36. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. DCP Midstream is also a strong prospect for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next three years. Dig deeper into DCP Midstream here.

NYSE:DCP Historical Dividend Yield May 29th 18

For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.