The cyclicality of the energy industry makes it hard for income investors to find high yielding stocks. However, after the 50% plunge in oil prices in 2014, energy companies are now benefiting from the recovery through higher cash flows. Consequently, dividend payment expectations have risen along with these companies’ profitability. I’ve made a list of other value-adding dividend-paying stocks in the energy industry for you to consider for your investment portfolio.
Bisichi Mining Plc (LSE:BISI)
BISI has a enticing dividend yield of 5.67% and the company currently pays out 77.65% of its profits as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from £0.025 to £0.04. Bisichi Mining seems reasonably priced when looking at its PE ratio (13.7). The industry average suggests that GB Oil and Gas companies are more expensive on average 24.1.
NWF Group plc (AIM:NWF)
NWF has a solid dividend yield of 3.65% and their current payout ratio is 53.04% . The company’s DPS have increased from £0.0388 to £0.06 over the last 10 years. To the enjoyment of shareholders, the company hasn’t missed a payment during this period.
Petrofac Limited (LSE:PFC)
PFC has a enticing dividend yield of 11.53% with a generous payout ratio . Despite there being some hiccups, dividends per share have increased during the past 10 years. The company also looks promising for it’s future growth, with analysts expecting an impressive earnings per share growth rate of over 100% over the next three years.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.