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. Subsequently, shareholders have growing expectations that dividend payments could increase as cash flow recovers at these companies. If you’re a buy-and-hold investor, these healthy dividend stocks in the energy industry can generously contribute to your monthly portfolio income.
CNX Midstream Partners LP (NYSE:CNXM)
CNXM has a enticing dividend yield of 6.67% and distributes 73.85% of its earnings to shareholders as dividends . CNXM’s dividend alone will put you better off than your bank interest, but the company’s yield isn’t only higher than the low risk savings rate. It’s also amongst the market’s top dividend payers. CNX Midstream Partners’s future earnings growth looks strong, with analysts expecting 72.34% EPS growth in the next three years. More detail on CNX Midstream Partners here.
Alliance Holdings GP, L.P. (NASDAQ:AHGP)
AHGP has a substantial dividend yield of 11.52% and pays 75.37% of it’s earnings as dividends . While there’s been some level of instability in the yield, AHGP has overall increased DPS over a 10 year period from US$1.15 to US$2.99. The last 12 months have seen an earnings growth of 11.71% for Alliance Holdings GP. Continue research on Alliance Holdings GP here.
Noble Midstream Partners LP (NYSE:NBLX)
NBLX has an appealing dividend yield of 4.21% and their payout ratio stands at 44.75% , with the expected payout in three years hitting 69.41%. NBLX’s 4.21% yield puts it in the top quartile of US payers. More on Noble Midstream Partners 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.