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
Top Paying Energy Dividend Stocks
Posted by D4L | Monday, September 05, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Boring stocks to buy and hold almost always align with deeply established businesses. While they won’t offer the outstanding growth potentia...
-
The quick rise in interest rates over the past year turned investor sentiment toward REITs negative. Higher interest rates make it harder fo...
-
Indeed, with recession on the horizon, investors are increasingly emphasizing quality, safety and dividends in their portfolio selections. W...
-
Linked here is a detailed quantitative analysis of Texas Instruments Inc. (TXN). Below are some highlights from the above linked analysis: C...
-
A great year for dividend growth stocks is one in which there are few dividend cuts and fewer companies that failed to raise their dividends...
-
Verizon (VZ -1.75%) pays one of the biggest dividends in the S&P 500. The telecom giant currently yields 6.5%. That's one of the top...
-
Countless people dream of being able to pay their bills with the cash they receive from their investments. But it doesn't have to be jus...
-
Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to re...
-
Cash is king when you’re looking to add dividend stocks to your portfolio There’s ample reason for caution. In case you haven’t noticed, a l...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.