The energy industry is highly dependent on commodity prices, making its profits and cash flows sensitive to the economic cycle. 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. If you’re a buy-and-hold investor, these healthy dividend stocks in the energy industry can generously contribute to your monthly portfolio income.
DCP Midstream, LP (NYSE:DCP)
DCP has an appealing dividend yield of 8.14% with a generous payout ratio . The company’s DPS have increased from $2.2 to $3.12 over the last 10 years. It should comfort existing and potential future shareholders to know that DCP hasn’t missed a payment during this time. Analysts are expecting an impressive triple digit earnings growth over the next three years. More on DCP Midstream here.
Antero Midstream Partners LP (NYSE:AM)
AM has an alluring dividend yield of 4.41% and their current payout ratio is 86.47% . The company’s yield puts it among good company – the top 25% of the market. The company’s future earnings growth looks promising, with analysts expecting earnings growth over the next three years to reach 67.45%. Continue research on Antero Midstream Partners here.
Helmerich & Payne, Inc. (NYSE:HP)
HP has a enticing dividend yield of 4.08% and a reasonably sustainable dividend payout ratio , with analysts expecting the payout ratio in three years to be 252.53%. HP’s dividends have increased in the last 10 years, with DPS increasing from $0.18 to $2.8. Much to the delight of shareholders, the company has not missed a payment during this time. If analysts predictions are right, Helmerich & Payne has some strong earnings growth on the short-term horizon with an expected increase in EPS of 67.22% over the next 12 months. Continue research on Helmerich & Payne 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.