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. 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.
Apache Corporation (NYSE:APA)
APA has a sizeable dividend yield of 2.27% and is currently distributing 57.13% of profits to shareholders , with analysts expecting a 71.62% payout in three years. Over the past 10 years, APA has increased its dividends from $0.6 to $1. The company has been a reliable payer too, not missing a payment during this time.
Magellan Midstream Partners, L.P. (NYSE:MMP)
MMP has a substantial dividend yield of 5.10% and their payout ratio stands at 93.69% , with the expected payout in three years being 97.14%. MMP’s last dividend payment was $3.56, up from it’s payment 10 years ago of $1.26. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend.
Plains All American Pipeline, L.P. (NYSE:PAA)
PAA has a juicy dividend yield of 10.47% and pays 168.54% of it’s earnings as dividends . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again.
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.