The cyclicality of the energy industry makes it hard for income investors to find high yielding stocks. However, as oil prices recover from lows in 2014, energy stocks have benefited through increased profitability and cash flows. Subsequently, shareholders have growing expectations that dividend payments could increase as cash flow recovers at these companies. As a long term investor, I favour these energy stocks with great dividend payments that continues to add value to my portfolio.
Kunlun Energy Company Limited (SEHK:135)
135 has a good dividend yield of 3.84% and distributes 35.61% of its earnings to shareholders as dividends , with analysts expecting a 37.19% payout in the next three years. Despite some volatility in the yield, DPS has risen in the last 10 years from CN¥0.12 to CN¥0.26. Dig deeper into Kunlun Energy here.
China Shenhua Energy Company Limited (SEHK:1088)
1088 has a sumptuous dividend yield of 6.02% and the company currently pays out 38.45% of its profits as dividends , with an expected payout of 41.34% in three years. Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from CN¥0.20 to CN¥1.12 over the past 10 years. The company outperformed the hk oil and gas industry’s earnings growth of 35.00%, reporting an EPS growth of 42.15% over the past 12 months. More on China Shenhua Energy here.
CNOOC Limited (SEHK:883)
883 has a nice dividend yield of 3.83% and their payout ratio stands at 74.72% . While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. Analysts are expecting an impressive triple digit earnings growth over the next three years. More detail on CNOOC here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.