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.
3 Dividend Stocks to Gain Despite Energy Market Choppiness
Read MoreHide Full Article
Since the onset of the coronavirus pandemic, the market has witnessed wild swings in oil prices. This reflects that notorious volatility is an integral part of the energy sector. However, due to some key factors, dividend-paying stocks in the same space are relatively less volatile, thereby poising Evolution Petroleum Corporation (EPM - Free Report) , Global Partners LP (GLP - Free Report) and EOG Resources, Inc. (EOG - Free Report) for growth.
Extremely Volatile Energy Market
We should not forget how oil prices behaved since the beginning of the coronavirus outbreak. The initial pandemic period, when there were no vaccines, saw an environment of heightened uncertainties. The commodity’s price plunged to a negative $36.98 per barrel on Apr 20, 2020.
However, with the rapid developments of vaccines by scientists, which led to the gradual opening of the economies, the pricing scenario of West Texas Intermediate crude improved drastically over time to reach $123.64 per barrel on Mar 8, 2022. Oil price data are per the U.S. Energy Information Administration. Oil is currently approaching the $70 per barrel mark again.
Dividend Stocks in the Spotlight
Overall oil pricing scenario seems scary, which could easily deter investors from allocating money to energy companies. Despite this volatility constraint, investors could consider dividend-paying companies belonging to the industry. This is because, generally, companies with stable dividend-paying history are relatively less volatile than stocks with no dividend history. It is expected that companies that have been rewarding stockholders with dividends will try their best to continue paying at the same pace or higher, making the stocks attractive and less volatile to the vagaries of the market.
We have employed our Stock Screener to zero in on three such stocks. With a dividend yield of more than 2%, all the companies have raised dividends over the past five years. Moreover, with a payout ratio of less than 60%, the companies ensure sustainability with enough scope for future dividend increases.
3 Stocks to Gain
Evolution Petroleum Corporation: A well-known,independent energy company, Evolution Petroleum has been boosting its production and reserves roughly six times, aided by the closure of four acquisitions from November 2019 to April 2022. Having a strong focus on returning capital to shareholders, this Zacks Rank #1 (Strong Buy) company has consecutively paid dividends since 2013. It pays out a quarterly dividend of 12 cents (48 cents annualized) per share, which gives it a 5.85% yield at the current stock price. (Check Evolution Petroleum’s dividend history here).
Evolution Petroleum Corporation, Inc. Dividend Yield (TTM)
Global Partners LP: A well-known name in the energy space, Global Partners is a key operator of gasoline stations and convenience stores. Having a solid balance sheet, Global Partners has been a successful player, aided by acquisitions and integrations of terminals and retail fuel assets. The Zacks #1 Ranked stock pays out a quarterly cash distribution of 65.5 cents ($2.62 annualized) per unit, which gives it an 8.60% yield at the current stock price. (Check Global Partners’ dividend history here).
EOG Resources, Inc: In the United States, EOG Resources is a leading exploration and production player. Since transitioning to premium drilling, EOG boasted that it has returned billions in cash to shareholders. The firm pays a quarterly cash dividend on the common stock of 82.5 cents ($3.30 annualized) per share. EOG, carrying a Zacks Rank #3 (Hold), also paid a special dividend of $1.00 per share on Mar 30. (Check EOG Resources’ dividend history here).
Image: Bigstock
3 Dividend Stocks to Gain Despite Energy Market Choppiness
Since the onset of the coronavirus pandemic, the market has witnessed wild swings in oil prices. This reflects that notorious volatility is an integral part of the energy sector. However, due to some key factors, dividend-paying stocks in the same space are relatively less volatile, thereby poising Evolution Petroleum Corporation (EPM - Free Report) , Global Partners LP (GLP - Free Report) and EOG Resources, Inc. (EOG - Free Report) for growth.
Extremely Volatile Energy Market
We should not forget how oil prices behaved since the beginning of the coronavirus outbreak. The initial pandemic period, when there were no vaccines, saw an environment of heightened uncertainties. The commodity’s price plunged to a negative $36.98 per barrel on Apr 20, 2020.
However, with the rapid developments of vaccines by scientists, which led to the gradual opening of the economies, the pricing scenario of West Texas Intermediate crude improved drastically over time to reach $123.64 per barrel on Mar 8, 2022. Oil price data are per the U.S. Energy Information Administration. Oil is currently approaching the $70 per barrel mark again.
Dividend Stocks in the Spotlight
Overall oil pricing scenario seems scary, which could easily deter investors from allocating money to energy companies. Despite this volatility constraint, investors could consider dividend-paying companies belonging to the industry. This is because, generally, companies with stable dividend-paying history are relatively less volatile than stocks with no dividend history. It is expected that companies that have been rewarding stockholders with dividends will try their best to continue paying at the same pace or higher, making the stocks attractive and less volatile to the vagaries of the market.
We have employed our Stock Screener to zero in on three such stocks. With a dividend yield of more than 2%, all the companies have raised dividends over the past five years. Moreover, with a payout ratio of less than 60%, the companies ensure sustainability with enough scope for future dividend increases.
3 Stocks to Gain
Evolution Petroleum Corporation: A well-known,independent energy company, Evolution Petroleum has been boosting its production and reserves roughly six times, aided by the closure of four acquisitions from November 2019 to April 2022. Having a strong focus on returning capital to shareholders, this Zacks Rank #1 (Strong Buy) company has consecutively paid dividends since 2013. It pays out a quarterly dividend of 12 cents (48 cents annualized) per share, which gives it a 5.85% yield at the current stock price. (Check Evolution Petroleum’s dividend history here).
Evolution Petroleum Corporation, Inc. Dividend Yield (TTM)
Evolution Petroleum Corporation, Inc. dividend-yield-ttm | Evolution Petroleum Corporation, Inc. Quote
You can see the complete list of today’s Zacks #1 Rank stocks here.
Global Partners LP: A well-known name in the energy space, Global Partners is a key operator of gasoline stations and convenience stores. Having a solid balance sheet, Global Partners has been a successful player, aided by acquisitions and integrations of terminals and retail fuel assets. The Zacks #1 Ranked stock pays out a quarterly cash distribution of 65.5 cents ($2.62 annualized) per unit, which gives it an 8.60% yield at the current stock price. (Check Global Partners’ dividend history here).
Global Partners LP Dividend Yield (TTM)
Global Partners LP dividend-yield-ttm | Global Partners LP Quote
EOG Resources, Inc: In the United States, EOG Resources is a leading exploration and production player. Since transitioning to premium drilling, EOG boasted that it has returned billions in cash to shareholders. The firm pays a quarterly cash dividend on the common stock of 82.5 cents ($3.30 annualized) per share. EOG, carrying a Zacks Rank #3 (Hold), also paid a special dividend of $1.00 per share on Mar 30. (Check EOG Resources’ dividend history here).
EOG Resources, Inc. Dividend Yield (TTM)
EOG Resources, Inc. dividend-yield-ttm | EOG Resources, Inc. Quote