Given the energy industry’s dependence on commodity prices, the sector tends to be cyclical and profitability can be highly variable. However, as oil rebounded from its multi-year lows, certain energy companies are in position to earn profits. Consequently, dividend payment expectations have risen along with these companies’ profitability. Here are my top dividend stocks in the energy industry that could be valuable additions to your current holdings.
Petrofac Limited (LSE:PFC)
PFC has a juicy dividend yield of 9.89% with a high payout ratio . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from $0.0883 to $0.565. Petrofac is also a strong prospect for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next three years.
Stobart Group Limited (LSE:STOB)
STOB has an appealing dividend yield of 6.41% and their payout ratio stands at 38.97% , with the expected payout in three years being 152.55%. Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from £0.06 to £0.18. Stobart Group’s earnings growth over the past 12 months has exceeded the gb oil, gas and consumable fuels industry, with the company reporting an EPS growth of 461.01% while the industry totaled 61.62%.
Anglo Pacific Group plc (LSE:APF)
APF has a substantial dividend yield of 4.29% and is currently distributing 35.16% of profits to shareholders , with the expected payout in three years being 57.16%. The company’s 4.29% dividend is both above the low risk savings rate and among the markets top payers. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the GB Oil, Gas and Consumable Fuels industry. Anglo Pacific Group’s PE ratio is 8.2 while its industry average is 14.4.For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.