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. 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.
Anglo Pacific Group plc (LSE:APF)
APF has a great dividend yield of 4.63% and pays out 35.16% of its profit as dividends , with analysts expecting this ratio in three years to be 59.62%. Besides capital gain prospects, just the yield is higher than the low risk savings rate – enticing for investors with goals of beating their bank accounts. Plus, a 4.63% yield places it amidst the market’s top dividend payers. Anglo Pacific Group is also reasonably priced, with a PE ratio of 8.9 that compares favorably with the GB Oil and Gas average of 13.1. Interested in Anglo Pacific Group? Find out more here.
Petrofac Limited (LSE:PFC)
PFC has a sumptuous dividend yield of 5.52% and a reasonably sustainable dividend payout ratio , with the expected payout in three years hitting 46.39%. Despite some volatility in the yield, DPS has risen in the last 10 years from US$0.081 to US$0.27. PFC is predicted to perform well in the coming years, with analysts estimating a three year return on equity of 23.17%. More on Petrofac here.
BP p.l.c. (LSE:BP.)
BP. has an appealing dividend yield of 5.97% with a large payout ratio . While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. Analyst estimates for BP’s future earnings are certainly promising, predicting a triple digit earnings growth over the next three years. More detail on BP 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.