When investors add an energy component to their portfolio, they often are doing so for capital gains exposure. That’s because many energy stocks simply don’t pay any dividends. The reason for that is because of high capital spending requirements. The truth is many E&P firms, oil service stocks and other companies in the energy sector often don’t have that much left in the kitty to pay back to shareholders via dividends after they shell out billions searching for new sources of production. It’s getting very expensive to frack a well or drill in ultra-deepwater.
While long-term price appreciation is great for a portfolio, investors wanting income from the energy patch are often left out in the cold … that is, unless they know where to look. And we’re not just talking about the major integrated firms, either. There are plenty of choices for income inside the energy sector, but you might have to look across some relatively unfamiliar names. Here are five of the best, arranged by yield: Ensco (ESV), Baytex Energy (BTE), TC PipeLines, LP (TCP), Calumet Specialty Products Partners, LP (CLMT) and BP Prudhoe Bay Royalty Trust (BPT).
Source: Investor Place
Related Articles:
- 7 Dividend Stocks With Room To Increase Their Payout
- 9 High Rated, Lower Debt Dividend Stocks With A Reasonable Payout
- 4 Dividend Stocks To Avoid The Social Security Blues
- Who is Ben Grossbaum and Why Should We Listen to Him?
- 9 High-Yielding Mega-Cap Stocks
Electric Sources of Energy Income
Posted by D4L | Wednesday, August 07, 2013 | ArticleLinks | 1 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...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Today we'll talk dividend deals. Big payers. Stocks yielding up to 10.3% and trading for as little as three-times free cash flow (FCF). ...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
D4L,
Great post on the electrics. Our parents and grandparents, etc used to invest in these for the income they provided and I enjoyed how you highlighted that they still can. This should remind your readers that our parents knew more than we thought they did... Anyway awesome post and info.