The energy industry is highly dependent on commodity prices, making its profits and cash flows sensitive to the economic cycle. 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. Below is my list of huge dividend-paying stocks in the energy industry that continues to add value to my portfolio holdings.
Gujarat Mineral Development Corporation Limited (BSE:532181)
532181 has a solid dividend yield of 2.95% and distributes 31.53% of its earnings to shareholders as dividends . Over the past 10 years, 532181 has increased its dividends from ₹1.00 to ₹3.50. They have been consistent too, not missing a payment during this 10 year period. Gujarat Mineral Development is also reasonably priced, with a PE ratio of 10.7 that compares favorably with the IN Oil and Gas average of 18. Continue research on Gujarat Mineral Development here.
Oil India Limited (NSEI:OIL)
OIL has a sumptuous dividend yield of 5.23% and the company has a payout ratio of 71.54% . OIL’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. The company also looks promising for it’s future growth, with analysts expecting an earnings per share increase of 99.20% over the next three years. Dig deeper into Oil India here.
Hindustan Petroleum Corporation Limited (BSE:500104)
500104 has a enticing dividend yield of 6.23% and the company currently pays out 37.00% of its profits as dividends , with analysts expecting the payout in three years to be 37.12%. Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from ₹0.67 to ₹19.50. The company recorded earnings growth of 76.18% in the past year, comparing favorably with the in oil and gas industry average of 20.65%. More detail on Hindustan Petroleum 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.