Given the energy industry’s dependence on commodity prices, the sector tends to be cyclical and profitability can be highly variable. However, as oil rebounded from its multi-year lows, certain energy companies are in position to earn profits. As a result, shareholders are paying more attention to companies like Valero Energy Partners and Holly Energy Partners, and have rising expectations for dividend payments as well. As a long term investor, I favour these energy stocks with great dividend payments that continues to add value to my portfolio.
Valero Energy Partners LP (NYSE:VLP)
VLP has a juicy dividend yield of 4.92% and the company currently pays out 67.38% of its profits as dividends , with the expected payout in three years being 87.59%. The company’s yield puts it among good company – the top 25% of the market. More on Valero Energy Partners here.
Holly Energy Partners, L.P. (NYSE:HEP)
HEP has a large dividend yield of 8.48% and their payout ratio stands at 161.08% . The company’s dividends per share have risen from $1.45 to $2.6 over the last 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. Continue research on Holly Energy Partners here.
PBF Energy Inc. (NYSE:PBF)
PBF has a juicy dividend yield of 4.05% and the company currently pays out 56.57% of its profits as dividends . The company’s 4.05% dividend is both above the low risk savings rate and among the markets top payers. Analysts are optimistic on the company’s earnings in the next 12 months, estimating a 43.65% increase in EPS. More on PBF Energy 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.