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Bet on These 3 Dividend Yielding Energy Stocks Right Away
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Notorious volatility is an integral part of the energy sector. However, due to some factors, dividend-paying stocks in the same space are relatively less volatile, thereby poising EOG Resources, Inc. (EOG - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and APA Corporation (APA - 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 trading at more than $70 per barrel.
Dividend Stocks to the Rescue
The overall oil pricing scenario seems scary, which could easily deter an investor 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 usually 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. All the stocks carry a Zacks Rank #2 (Buy). 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
EOG Resources is a leading exploration and production player in the United States. Since transitioning to premium drilling, EOG boasted that it has returned billions in cash to shareholders. The firm declared a quarterly cash dividend on the common stock of 91 cents ($3.64 annualized) per share, payable on Jan 31, 2024, to stockholders on record as of Jan 17, 2024. (Check EOG Resources’ dividend history here).
Exxon Mobil Corporation is one of the largest integrated energy majors, having a significant project pipeline in the prolific Permian Basin and offshore Guyanaresources. ExxonMobil declared fourth-quarter dividend of 95 cents per share, payable on Dec 11, to shareholders on record as of Nov 15. (Check ExxonMobil’s dividend history here).
APA Corporation is a leading exploration and production company with operations in the United States, Egypt and the United Kingdom. The company pays a quarterly cash dividend on the common stock of 25 cents ($1 annualized) per share. (Check APA’s dividend history here).
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Bet on These 3 Dividend Yielding Energy Stocks Right Away
Notorious volatility is an integral part of the energy sector. However, due to some factors, dividend-paying stocks in the same space are relatively less volatile, thereby poising EOG Resources, Inc. (EOG - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and APA Corporation (APA - 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 trading at more than $70 per barrel.
Dividend Stocks to the Rescue
The overall oil pricing scenario seems scary, which could easily deter an investor 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 usually 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. All the stocks carry a Zacks Rank #2 (Buy). 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
EOG Resources is a leading exploration and production player in the United States. Since transitioning to premium drilling, EOG boasted that it has returned billions in cash to shareholders. The firm declared a quarterly cash dividend on the common stock of 91 cents ($3.64 annualized) per share, payable on Jan 31, 2024, to stockholders on record as of Jan 17, 2024. (Check EOG Resources’ dividend history here).
EOG Resources, Inc. Dividend Yield (TTM)
EOG Resources, Inc. dividend-yield-ttm | EOG Resources, Inc. Quote
Exxon Mobil Corporation is one of the largest integrated energy majors, having a significant project pipeline in the prolific Permian Basin and offshore Guyanaresources. ExxonMobil declared fourth-quarter dividend of 95 cents per share, payable on Dec 11, to shareholders on record as of Nov 15. (Check ExxonMobil’s dividend history here).
Exxon Mobil Corporation Dividend Yield (TTM)
Exxon Mobil Corporation dividend-yield-ttm | Exxon Mobil Corporation Quote
APA Corporation is a leading exploration and production company with operations in the United States, Egypt and the United Kingdom. The company pays a quarterly cash dividend on the common stock of 25 cents ($1 annualized) per share. (Check APA’s dividend history here).
APA Corporation Dividend Yield (TTM)
APA Corporation dividend-yield-ttm | APA Corporation Quote