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. Subsequently, shareholders have growing expectations that dividend payments could increase as cash flow recovers at these companies. If you’re a buy-and-hold investor, these healthy dividend stocks in the energy industry can generously contribute to your monthly portfolio income.
Natural Resource Partners L.P. (NYSE:NRP)
NRP has a enticing dividend yield of 6.17% and the company has a payout ratio of 46.76% . NRP’s dividend alone will put you better off than your bank interest, but the company’s yield isn’t only higher than the low risk savings rate. It’s also amongst the market’s top dividend payers. Interested in Natural Resource Partners? Find out more here.
Rice Midstream Partners LP (NYSE:RMP)
RMP has a great dividend yield of 5.63% and is distributing 67.06% of earnings as dividends , with analysts expecting this ratio in three years to be 89.66%. With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that RMP is in the top quartile of market payers. Analysts are optimistic on the company’s future earnings growth, estimating a 54.18% increase in the next three years. Dig deeper into Rice Midstream Partners here.
TC PipeLines, LP (NYSE:TCP)
TCP has a juicy dividend yield of 7.93% and is paying out 125.78% of profits as dividends . TCP’s dividends have increased in the last 10 years, with DPS increasing from US$2.66 to US$4.00. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Continue research on TC PipeLines here.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.