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. As a result, shareholders are paying more attention to companies like Transmontaigne Partners and Hi-Crush Partners, and have rising expectations for dividend payments as well. I’ve made a list of other value-adding dividend-paying stocks in the energy industry for you to consider for your investment portfolio.
Transmontaigne Partners L.P. (NYSE:TLP)
TLP has a juicy dividend yield of 8.59% and is paying out 135.83% of profits as dividends . The company’s DPS have increased from US$2.28 to US$3.14 over the last 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. Analysts are enthusiastic about the company’s future growth, estimating a 61.20% earnings per share increase in the next three years. More on Transmontaigne Partners here.
Hi-Crush Partners LP (NYSE:HCLP)
HCLP has a great dividend yield of 6.90% and is currently distributing 36.46% of profits to shareholders , and analysts are expecting the payout ratio in three years to hit 70.22%. Besides the potential capital gains, HCLP’s yield alone is better than the low risk savings rate. Plus, a 6.90% yield places it amidst the market’s top dividend payers. Hi-Crush Partners is a strong prospect for its future growth, with analysts expecting the company’s earnings to increase by 96.57% over the next three years. Interested in Hi-Crush Partners? Find out more here.
TC PipeLines, LP (NYSE:TCP)
TCP has a large dividend yield of 15.37% and their current payout ratio is 105.90% . TCP’s last dividend payment was US$4.00, up from it’s payment 10 years ago of US$2.80. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. Dig deeper into TC PipeLines 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.