Dividends4Life: 3 Energy Dividends You Can Still Trust

3 Energy Dividends You Can Still Trust

Posted by D4L | Friday, January 08, 2016 | | 0 comments »

With the price of oil recently hitting a seven-year low and natural gas now at a 14-year low, there has been a deep impact on the cash flows at oil and gas companies. Many don't have enough money coming in to drill the required number of new wells needed to maintain their production rates, let alone any left over to pay shareholders a steady dividend. This has resulted in the reduction or suspension of a countless number of energy-related dividends. All that said, there are a few energy dividends that investors can still trust. Here are three companies that have been making their dividend a priority.

If there's one company with a dividend you can depend on, it's Phillips 66 (NYSE:PSX). Phillips 66's dividend only consumes 24% of profits. ConocoPhillips (NYSE:COP) continues to make it clear to investors that its dividend remains trustworthy. The company stands so steadfastly behind its dividend because it firmly believes that having a strong dividend forces it to be more disciplined. ExxonMobil (NYSE:XOM) is well positioned to protect its dividend, even with oil prices below $40 a barrel. ExxonMobil's dividends are still very well covered by its operating cash flow. It generated nearly $9.2 billion in cash from operations in the quarter ending Sept. 30, 2015, and only around $3.1 billion of that went to pay dividends.

Source: Motley Fool

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