Energy Stocks Poised for Dividend Growth

Posted by D4L | Saturday, January 04, 2014 | 0 comments »

The classic dividend sectors are utilities and telecoms, but there is another sector populating the highest dividend-growing company lists lately, and that is energy. Energy stocks offer high dividends because domestic energy production has been surging, allowing companies with pipeline networks to get the benefit of the rising volumes via transport taxes. Also, high oil price have allowed producing companies to hike their dividends as the price of crude oil has exploded upwards over the last decade.

One of the greatest dividend stories in energy has been ConocoPhillips (COP). The ten-tear annualized dividend growth has been 13.8% (as of 3Q). The 10-year EPS growth is 24.8% and the 10-year return of the share price is 16%. All this comes with a dividend yield of 3.9%—not too shabby. Conoco has made some drastic changes of late to re-energize the share price. It spun off its refining subsidiary as Phillips 66 (PSX). This is similar to what Marathon Oil (MRO) and Marathon Petroleum (MPC) did earlier.

Source: InvestorPlace

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