The energy industry is highly dependent on commodity prices, making its profits and cash flows sensitive to the economic cycle. However, after the 50% plunge in oil prices in 2014, energy companies are now benefiting from the recovery through higher cash flows. Consequently, dividend payment expectations have risen along with these companies’ profitability. Here are my top dividend stocks in the energy industry that could be valuable additions to your current holdings.
AltaGas Ltd. (TSX:ALA)
ALA has a juicy dividend yield of 8.13% with a generous payout ratio . The company’s dividends per share have risen from $2.1 to $2.19 over the last 10 years. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. AltaGas 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. More on AltaGas here.
Vermilion Energy Inc. (TSX:VET)
VET has a juicy dividend yield of 5.67% with a high payout ratio . VET’s dividends have seen an increase over the past 10 years, with payments increasing from $2.28 to $2.58 in that time. It should comfort existing and potential future shareholders to know that VET hasn’t missed a payment during this time. More detail on Vermilion Energy here.
Inter Pipeline Ltd. (TSX:IPL)
IPL has a juicy dividend yield of 7.29% and is paying out 116.87% of profits as dividends . In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.84 to $1.68. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. More on Inter Pipeline here.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our 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.