Great Energy Dividend Stocks For Every Portfolio
The energy industry is highly dependent on commodity prices, making its profits and cash flows sensitive to the economic cycle. However, after the 50% plunge in oil prices in 2014, energy companies are now benefiting from the recovery through higher cash flows. Consequently, dividend payment expectations have risen along with these companies’ profitability. I’ve made a list of other value-adding dividend-paying stocks in the energy industry for you to consider for your investment portfolio.
AKITA Drilling Ltd. (TSX:AKT.A)
AKT.A has a substantial dividend yield of 4.94% and a reasonably sustainable dividend payout ratio . Over the past 10 years, AKT.A has increased its dividends from $0.28 to $0.34. They have been consistent too, not missing a payment during this 10 year period. Over the next year, analysts are estimating a double digit EPS growth of 32.85%.
High Arctic Energy Services Inc (TSX:HWO)
HWO has a great dividend yield of 5.17% and pays 42.95% of it’s earnings as dividends . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from $0 to $0.198. The company has a lower PE ratio than the CA Energy Services industry, which interested investors would be happy to see. The company’s PE is currently 8.4 while the industry is sitting higher at 23.3.
ZCL Composites Inc. (TSX:ZCL)
ZCL has a large dividend yield of 4.37% and is currently distributing 82.13% of profits to shareholders . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from $0.1 to $0.48. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the CA Energy Services industry. ZCL Composites’s PE ratio is 18.8 while its industry average is 23.3.
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.
