Dividends4Life: Top Paying Energy Dividend Stocks

Top Paying Energy Dividend Stocks

Posted by D4L | Monday, September 05, 2011 | | 0 comments »

The energy industry is off from its spring highs, but should improve when the economy begins growing again. However, I believe that the energy industry is always worth following given its key role in the economy. Some investors look at energy stocks (electric utilities, natural gas, integrated oil, etc..) as good dividend stocks - consistent dividends with good growth prospects. However, a high yield is simply not enough to justify an investment. One can always ask the question, 'Is this a high dividend yield because it has strong earnings and good prospects or is it a high yield because the price is in decline due to fundamental questions about the company's future?'

Finding a 5% dividend yield only to have the stock drop 20% in price is an ineffective investing strategy. When looking at investment opportunities, it is important to dig a little deeper to understand the company's growth prospects and risk profile. This analysis will looked at 506 energy companies, but screened out all companies with less than $1 billion in market capitalization which reduced that figure to 240. This analysis also excludes MLPs which should be evaluated separately given their tax implications and different risk profiles.

Source: Seeking Alpha

Related Articles:
- 10 Dividend Stocks With Above Target Returns
- 5 Dividend Stocks Trading Below Fair Value
- 8 Dividend Stocks Covering Their Dividend
- 7 Low-Debt High-Rated Dividend Stocks
- 3 Styles Of Sucessful Dividend Investing

Click here to have future posts delivered to you for free!



Post a Comment

Note: Only a member of this blog may post a comment.


Popular Posts Last 30 Days