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.
In the past 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.
The sector is certainly volatile, as recently demonstrated with over supply taking the forefront driving prices to recent lows. These large swings weed out the weak participants, leaving the strong to enjoy the fruits of the next upturn.
However, the energy sector will only become more valuable as time passes and resources become more scarce.
This week, I screened my dividend growth stocks database for energy companies with a yield at or above 3.5% and have increased their dividends for at least 15 consecutive years. The results are presented below:
National Fuel Gas Co. (NFG) is an integrated energy company that has six operating segments: utility, pipeline & storage, exploration & production, international, energy marketing, and timber.
Yield: 3.7% | Years of Dividend Growth: 46
Exxon Mobil Corp. (XOM) , formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company.
Yield: 3.8% | Years of Dividend Growth: 33
Enterprise Products Partners LP (EPD) is an integrated provider of natural gas and natural gas liquids services, including processing, fractionation, storage, transportation and terminalling.
Yield: 6.0% | Years of Dividend Growth: 18
ConocoPhillips Co. (COP) is of the largest independent oil and gas exploration and production (E&P) companies in the world, COP spun off its downstream assets in May 2012.
Yield: 6.3% | Years of Dividend Growth: 15
TC PipeLines LP (TCP) has interests in over 5,550 interstate natural gas pipelines, including a 46.5% stake in Great Lakes Gas Transmission L.P.
Yield: 7.2% | Years of Dividend Growth: 16
Buckeye Partners LP (BPL) is one of the largest independent U.S. pipeline common carriers of refined petroleum products, with over 6,000 miles of pipeline.
Yield: 7.5% | Years of Dividend Growth: 20
Plains All American Pipeline LP (PAA) is a limited partnership that engages in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil gathering and marketing.
Yield: 12.1% | Years of Dividend Growth: 15
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 250+ 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 XOM, COP, in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.
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Tags: NFG, XOM, EPD, COP, TCP, BPL, PAA,
