The cyclicality of the energy industry makes it hard for income investors to find high yielding stocks. However, as oil prices recover from lows in 2014, energy stocks have benefited through increased profitability and cash flows. Consequently, dividend payment expectations have risen along with these companies’ profitability. Today I will share with you my list of high-dividend energy stocks you should consider for your portfolio.
CNX Midstream Partners LP (NYSE:CNXM)
CNXM has a substantial dividend yield of 6.77% and distributes 69.18% of its earnings to shareholders as dividends , with analysts expecting a 81.69% payout in three years. The company’s 6.77% dividend is both above the low risk savings rate and among the markets top payers. Continue research on CNX Midstream Partners here.
Alliance Holdings GP, L.P. (NASDAQ:AHGP)
AHGP has a juicy dividend yield of 11.60% and their current payout ratio is 88.75% , with the expected payout in three years being 96.02%. Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from US$1.15 to US$2.97 over the past 10 years. Alliance Holdings GP is also reasonably priced, with a PE ratio of 8.2 that compares favorably with the US Oil and Gas average of 13.1. More on Alliance Holdings GP here.
Noble Midstream Partners LP (NYSE:NBLX)
NBLX has a large dividend yield of 4.08% and is paying out 44.20% of profits as dividends , with the expected payout in three years hitting 60.51%. The company’s 4.08% dividend is both above the low risk savings rate and among the markets top payers. Continue research on Noble Midstream Partners 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.