We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Energy Stocks to Buy for Growth & Lofty Dividends
Read MoreHide Full Article
Currently around $87 a barrel, crude oil prices have climbed another 4% over the last month mostly attributed to tighter supplies.
This cotinues to make quite a few stocks in the Zacks Oils & Energy sector attractive. Here are four of these top-rated stocks to consider as they may be able to sustain their growth and lofty dividends.
Image Source: Yahoo Finance
Oil Producers with High Dividend Yields
Companies involved in oil production can profit immensely when crude prices are high with Evolution Petroleum (EPM - Free Report) and Plains Group (PAGP - Free Report) being two stocks to watch. Both of these oil production-related stocks sport a Zacks Rank #2 (Buy).
Notably, Evolution Petroleum and Plains Group currently have dividend yields of 5.36% and 6.67% respectively while expecting double-digit percentage growth on their bottom lines. In terms of their dividends, both have yields that tower over the S&P 500’s 1.38% average and the broader Zacks Oils & Energy sectors' 3.47% average.
Image Source: Zacks Investment Research
More lucrative is that Evolution Petroleum’s earnings are expected to jump 15% this year at $1.11 per share. Fiscal 2024 earnings are expected to dip -2% at $1.08 per share but this would still represent an astonishing 671% EPS growth over the last five years with 2020 earnings at $0.14 a share.
Image Source: Zacks Investment Research
As for Plains Group, its growth trajectory is very appealing as well. Fiscal 2023 earnings are now expected to soar 44% to $1.24 per share versus EPS of $0.96 a share last year. More impressive, FY24 earnings are projected to climb another 32% to $1.64 per share.
Image Source: Zacks Investment Research
Oil Refiners with High Dividend Yields
Oil refiners that break down the commodity into other products such as gasoline and kerosene don’t always benefit from high crude prices but CVR Energy’s (CVI - Free Report) stock has remained compelling with a Zacks Rank #1 (Strong Buy).
CVR Energy has a 5.76% dividend yield at the moment with the company coming off a stellar year that saw earnings at $6.04 a share in 2022. Although CVR Energy's bottom line is expected to contract after such an exceptional year earnings estimate revisions have soared over the last 60 days.
After beating Q2 earnings expectations by 36% in late July, CVR Energy's FY23 earnings estimates have now soared 44% in the last two months with FY24 EPS estimates soaring 14%.
Image Source: Zacks Investment Research
Pivoting to Global Partners (GLP - Free Report) which sports a Zacks Rank #2 (Buy), the trend in earnings estimates is also intriguing and alludes to the potential of more upside in GLP shares. Fiscal 2023 earnings estimates are up 1% over the last 60 days with FY24 EPS estimates rising 7%. Plus, Global Partners has a very lucrative 8.39% dividend yield at the moment.
Image Source: Zacks Investment Research
Takeaway
In addition to their favorable Zacks ranking, these top-rated oils and energy sector stocks have an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
With crude prices remaining higher, these oil refiners and producers look poised to benefit and have stellar dividends to support investors.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Energy Stocks to Buy for Growth & Lofty Dividends
Currently around $87 a barrel, crude oil prices have climbed another 4% over the last month mostly attributed to tighter supplies.
This cotinues to make quite a few stocks in the Zacks Oils & Energy sector attractive. Here are four of these top-rated stocks to consider as they may be able to sustain their growth and lofty dividends.
Image Source: Yahoo Finance
Oil Producers with High Dividend Yields
Companies involved in oil production can profit immensely when crude prices are high with Evolution Petroleum (EPM - Free Report) and Plains Group (PAGP - Free Report) being two stocks to watch. Both of these oil production-related stocks sport a Zacks Rank #2 (Buy).
Notably, Evolution Petroleum and Plains Group currently have dividend yields of 5.36% and 6.67% respectively while expecting double-digit percentage growth on their bottom lines. In terms of their dividends, both have yields that tower over the S&P 500’s 1.38% average and the broader Zacks Oils & Energy sectors' 3.47% average.
Image Source: Zacks Investment Research
More lucrative is that Evolution Petroleum’s earnings are expected to jump 15% this year at $1.11 per share. Fiscal 2024 earnings are expected to dip -2% at $1.08 per share but this would still represent an astonishing 671% EPS growth over the last five years with 2020 earnings at $0.14 a share.
Image Source: Zacks Investment Research
As for Plains Group, its growth trajectory is very appealing as well. Fiscal 2023 earnings are now expected to soar 44% to $1.24 per share versus EPS of $0.96 a share last year. More impressive, FY24 earnings are projected to climb another 32% to $1.64 per share.
Image Source: Zacks Investment Research
Oil Refiners with High Dividend Yields
Oil refiners that break down the commodity into other products such as gasoline and kerosene don’t always benefit from high crude prices but CVR Energy’s (CVI - Free Report) stock has remained compelling with a Zacks Rank #1 (Strong Buy).
CVR Energy has a 5.76% dividend yield at the moment with the company coming off a stellar year that saw earnings at $6.04 a share in 2022. Although CVR Energy's bottom line is expected to contract after such an exceptional year earnings estimate revisions have soared over the last 60 days.
After beating Q2 earnings expectations by 36% in late July, CVR Energy's FY23 earnings estimates have now soared 44% in the last two months with FY24 EPS estimates soaring 14%.
Image Source: Zacks Investment Research
Pivoting to Global Partners (GLP - Free Report) which sports a Zacks Rank #2 (Buy), the trend in earnings estimates is also intriguing and alludes to the potential of more upside in GLP shares. Fiscal 2023 earnings estimates are up 1% over the last 60 days with FY24 EPS estimates rising 7%. Plus, Global Partners has a very lucrative 8.39% dividend yield at the moment.
Image Source: Zacks Investment Research
Takeaway
In addition to their favorable Zacks ranking, these top-rated oils and energy sector stocks have an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
With crude prices remaining higher, these oil refiners and producers look poised to benefit and have stellar dividends to support investors.