Given the energy industry’s dependence on commodity prices, the sector tends to be cyclical and profitability can be highly variable. 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. Today I will share with you my list of high-dividend energy stocks you should consider for your portfolio.
Kunlun Energy Company Limited (SEHK:135)
135 has a nice dividend yield of 3.84% and is paying out 35.61% of profits as dividends , with analysts expecting this ratio to be 36.83% in the next three years. Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. More on Kunlun Energy here.
China Shenhua Energy Company Limited (SEHK:1088)
1088 has a solid dividend yield of 2.68% and is distributing 20.32% of earnings as dividends , with analysts expecting a 42.60% payout in the next three years. Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. Continue research on China Shenhua Energy here.
China Petroleum & Chemical Corporation (SEHK:386)
386 has a juicy dividend yield of 4.13% and their payout ratio stands at 63.83% . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. Dig deeper into China Petroleum & Chemical 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.