Given the energy industry’s dependence on commodity prices, the sector tends to be cyclical and profitability can be highly variable. However, as oil rebounded from its multi-year lows, certain energy companies are in position to earn profits. These favourable macroeconomic tailwinds have recently made this industry an interesting dividend play. I’ve identify the following energy stocks paying high income, which may increase the value of your portfolio.
CNX Midstream Partners LP (NYSE:CNXM)
CNXM has a large dividend yield of 6.19% and is currently distributing 73.85% of profits to shareholders . CNXM’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market. Over the next three years, analysts predict double digit earnings growth for CNX Midstream Partners of 70.51%. More on CNX Midstream Partners here.
Alliance Holdings GP, L.P. (NASDAQ:AHGP)
AHGP has an appealing dividend yield of 10.53% and pays 75.37% of it’s earnings as dividends . Despite there being some hiccups, dividends per share have increased during the past 10 years. Alliance Holdings GP also reported a strong double digit earnings growth of 11.71% over the past 12 months. More on Alliance Holdings GP here.
RPC, Inc. (NYSE:RES)
RES has a good dividend yield of 3.32% and their current payout ratio is 23.62% , with analysts expecting a 29.60% payout in three years. Despite there being some hiccups, dividends per share have increased during the past 10 years. Dig deeper into RPC here.
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.