Positive Dividend Outlook Amid Rising Oil Prices Enables E&P Giant to Enter Best Dividend Stocks List
Dividend.com has added an international energy firm to the Best Dividend Stocks List and removed a packaging & adhesive company from the list.
After reaching decade lows a few years ago and "lower for longer" becoming part of the sector's collective lexicon, oil prices are back with a vengeance. Thanks to a rising economy, greater demand and a dash of geopolitical tension, crude oil prices have surged to more than $70 per barrel – a price not seen since 2014. For the energy sector, this has been a boon with higher profits, cash flows and a resumption of dividend payments.
And this includes our latest Best Dividend Stocks List pick.
As one of the largest pure Exploration & Production (E&P) players in the nation, our new pick has experienced a huge upswing in profits in recent quarters as crude oil and natural gas have rebounded. At the same time, our pick has uniquely positioned itself to keep the growth going.
During the recent bust, our pick continued to rightsize its asset portfolio and has only focused on the most profitable drilling regions/fields. Likewise, a focus on cost-cutting and reducing CAPEX spending has allowed it to boost overall profit margins. With oil now surging, these moves have enabled our new pick to reduce debt, boost profits and, ultimately, restart/boost its dividend.
For investors, our new pick offers plenty of energy to a portfolio and will make the most out of the rising energy environment. Five reasons why you should own this stock:
- The world's largest independent E&P company based on proved reserves.
- Focused on dropping costs/CAPEX spending to improve its overall margins and per barrel break-even costs.
- Direct play on the rising global economy and growing energy demand.
- Increased its dividend 6% last year, followed by an increase in its share buyback program.
- Healthy payout ratio of 31% and increasing yield of 1.75%.
All data in the table above updated as of 05/29/2018.
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MORE ABOUT THIS STOCK
Trailing 5-Year Dividend Payout History
- Annualized Growth Over The Last 5 Years: -16.7%.
As a dividend investor, you need access to the best and safest stocks on the market. Dividend.com’s DARS ratings have been providing you with reliable and profitable stock analysis since 2008, and this addition is no exception.
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