Looking for high dividend stocks that you can expect juice distributions and still have room to grow? We have screened for stocks in the coal industry that have high dividend of more than 5% and average EPS growth of more than 5% over the past five years. As a result, we get three high dividend stocks in this industry listed as follows:
Alliance Holdings GP, L.P.(NASDAQ:AHGP), through its subsidiaries, produces and markets a range of steam coal with varying sulfur and heat contents primarily to utilities and industrial users in the United States.
The partnership has been growing its dividend payouts for the fifth consecutive year from $10.3 per unit in 2007 to $2.275 per unit in 2011. As of the first two quarters of 2012, the partnership has already paid distribution of $1.30. The partnership currently yields at 5.70% and the past five year average dividend yield was also 5.70%.
The partnership also grew its EPS from $1.47 in 2007 to $3.58 in 2011. For the first quarter of fiscal 2012, the partnership posted EPS of $0.82, topping the average analyst estimate of $0.71 (a 15.5% surprise). The median of stock price targets estimated by analysts is $61.50, which means a strong 31% upside room to grow.
Alliance Resource Partners, L.P.(NASDAQ:ARLP)
Alliance Resource Partners, L.P. is a diversified coal producer and maker which engages in the production and marketing of coal primarily to utilities and industrial users in the United States. The partnership operates 10 underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia, including the new Tunnel Ridge mine in West Virginia.
The partnership has been consecutively growing its dividend payouts for 9 years. Over the past five years, the partnership averagely yielded 6.30% and currently pay a dividend of 6.60%. ARLP also announced to increase the cash distribution to unitholders for the 2012 Quarter to $1.025 per unit (an annualized rate of $4.10 per unit), payable on May 15, 2012 to all unitholders of record as of the close of trading on May 8, 2012.
The partnership also substaintially increased its EPS of $3.07 in 2007 to $8.13 in 2011. For the first quarter of fiscal 2012, the partnership delivered EPS of $1.54 in line with the analyst estimates. The average stock price target by analysts is $79.12, which means a 26.5% upward potential.
Natural Resource Partners LP(NYSE:NRP)
Natural Resource Partners L.P. is a limited partnership, through its subsidiaries, engages principally in the ownership and management of coal properties in Appalachia, the Illinois Basin, and the Northern Powder River Basin regions of the United States. The partnership also provides the services of leasing of mineral properties and related transportation and processing infrastructure.
The partnership has been growing its dividends for the eighth consecutive year. Ovet the past five years, annual distributions increased from $1.835 in 2007 to $2.17 in 2011. For the first two quarters of the fiscal 2012, the partnership has aggregately paid out $1.100. The partnership currently yields at 9.40% with a historical average dividend yield of 8.20% over the past five years.
NRP reported the fiscal 2012 first quarter EPS of 47 cents, edging out the consensus estimate of 42 cents. The average stock price target by analysts is $30.00, which means a 22.5% rising room.