The cyclicality of the energy industry makes it hard for income investors to find high yielding stocks. However, after the 50% plunge in oil prices in 2014, energy companies are now benefiting from the recovery through higher cash flows. These favourable macroeconomic tailwinds have recently made this industry an interesting dividend play. As a long term investor, I favour these energy stocks with great dividend payments that continues to add value to my portfolio.
Natural Resource Partners L.P. (NYSE:NRP)
NRP has an alluring dividend yield of 6.17% and pays out 46.76% of its profit as dividends . NRP’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market. More detail on Natural Resource Partners here.
Rice Midstream Partners LP (NYSE:RMP)
RMP has an alluring dividend yield of 5.63% and pays out 67.06% of its profit as dividends , with analysts expecting this ratio to be 89.66% in the next three years. RMP’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. Over the next three years, analysts predict double digit earnings growth for Rice Midstream Partners of 54.18%. Interested in Rice Midstream Partners? Find out more here.
TC PipeLines, LP (NYSE:TCP)
TCP has a great dividend yield of 7.93% and has a payout ratio of 125.78% . TCP’s dividends have seen an increase over the past 10 years, with payments increasing from US$2.66 to US$4.00 in that time. They have been dependable too, not missing a single payment in this time. Dig deeper into TC PipeLines 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.