The energy industry is highly dependent on commodity prices, making its profits and cash flows sensitive to the economic cycle. However, as oil prices recover from lows in 2014, energy stocks have benefited through increased profitability and cash flows. These favourable macroeconomic tailwinds have recently made this industry an interesting dividend play. Today I will share with you my list of high-dividend energy stocks you should consider for your portfolio.
Natural Resource Partners L.P. (NYSE:NRP)
NRP has a sumptuous dividend yield of 6.37% and is distributing 35.23% of earnings as dividends . Besides the potential capital gains, NRP’s yield alone is better than the low risk savings rate. Plus, a 6.37% yield places it amidst the market’s top dividend payers. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the US Oil and Gas industry. Natural Resource Partners’s PE ratio is 5.5 while its industry average is 12.2. Continue research on Natural Resource Partners here.
BP Midstream Partners LP (NYSE:BPMP)
BPMP has an alluring dividend yield of 6.08% and their current payout ratio is 86.47% , with analysts expecting this ratio to be 89.89% in the next three years. BPMP’s 6.08% yield puts it in the top quartile of US payers. BP Midstream Partners could be a good investment for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next 12 months Continue research on BP Midstream Partners here.
Rice Midstream Partners LP (NYSE:RMP)
RMP has a enticing dividend yield of 6.42% and is paying out 66.41% of profits as dividends , with analysts expecting a 86.71% payout in three years. The company’s yield puts it among good company – the top 25% of the market. More detail on Rice Midstream Partners here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.