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Thursday, August 4, 2011

8 High-Yield Energy Stocks Growing Their Dividends

From the time the first fire was discovered until now, energy has played a critical role in the development of modern man. As our society has developed, we have require an increasingly large amount of energy. We rely on companies in the Energy Sector to supply our needs.

The Energy Sector includes businesses engaged in the production and sale of energy products. This includes extraction, manufacturing, refining and distribution. As the world's population increases and third-world countries continue to develop, there will be more intense demand on our finite supply of energy.

We have seen this imbalance manifest itself in the form of higher gasoline and diesel prices, which has resulted in upward price pressure on products or raw materials that have to be transported - which is nearly all of them.

This sector will only become more valuable as time passes and resources become more scarce.

This week week, I screened my dividend growth stocks database for energy companies with a yield at or above 3% and have increased their dividends for at least 10 consecutive years. The results are presented below:

Chevron Corporation (CVX)
Yield: 3.0% | Years of Dividend Growth: 24
Chevron Corporation is a global integrated oil company (formerly ChevronTexaco) that has interests in exploration, production, refining and marketing, and petrochemicals.

Questar Corporation (STR)
Yield: 3.2% | Years of Dividend Growth: 32
Questar Corp is engaged in gas transportation and storage, and retail gas distribution primarily in Utah. Its exploration and production unit was spun off in mid-2010.

ConocoPhillips Co. (COP)
Yield: 3.7% | Years of Dividend Growth: 11
ConocoPhillips Co. was formed in 2002 when Phillips Petroleum and Conoco merged and is now is the fourth largest integrated oil company in the world.

Enterprise Products Partners LP (EPD)
Yield: 5.7% | Years of Dividend Growth: 14
Enterprise Products Partners LP is an integrated provider of natural gas and natural gas liquids services, including processing, fractionation, storage, transportation and terminalling.

Plains All American Pipeline LP (PAA)
Yield: 6.2% | Years of Dividend Growth: 11
Plains All American Pipeline LP is a limited partnership that engages in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil gathering and marketing.

Buckeye Partners LP (BPL)
Yield: 6.3% | Years of Dividend Growth: 16
Buckeye Partners LP is one of the largest independent U.S. pipeline common carriers of refined petroleum products, with over 5,400 miles of pipeline.

Kinder Morgan Energy Partners LP (KMP)
Yield: 6.5% | Years of Dividend Growth: 15
Kinder Morgan Energy Partners LP is one of the largest pipeline master limited partnerships (MLPs) in the U.S.

Suburban PropanePartners LP (SPH)
Yield: 7.7% | Years of Dividend Growth: 12
Suburban Propane Partners LP is a limited partnership that markets propane gas and other refined fuels to residential, commercial, industrial, and agricultural customers.

As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.

My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 210+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.

Full Disclosure: Long CVX, COP. See a list of all my dividend growth holdings here.

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(Photo Credit)

Tags: [CVX] [STR] [COP] [EPD] [PAA] [BPL] [KMP] [SPH]