With the vagaries of the climate of markets, finding the high dividend stocks is definitely worth the in consideration of investors. Those high dividend stocks with solid fundamentals should prove to be a solid addition to an investment portfolio. But merely focusing on high dividend payout could be a high risk ladder once the investors going further up would find them in an embarrassing situation. High dividend payout without health financials may indicate the inability of a company to maintain growth or the company’s stock price has fallen sharply.
In addition, these yields are only worth something if they are sustainable, because these companys paid consistently high dividends over the past years tend to pay the same level of dividends in the future. Read more about two high dividend stocks with reasonable stock prices.
Here we pick three high dividend stocks of the Oils-Energy sector with relative strong fundamentals.
Enterprise Products Partners LP (NYSE:EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals in the United States, Canada, and Gulf of Mexico. EPD yielded on average more than 6.72 percent over the past five years, meanwhile the company grew its net sales by 25.52 percent and earnings per share by 15.84 percent on a basis of annual average, repsectively. We currently give a “buy” grade to EPD stock.
Holly Energy Partners, L.P. (NYSE:HEP) operates a system of petroleum product and crude pipelines, storage tanks, distribution terminals, and loading rack facilities. The company paid dividends at a 5 year average rate of 7.61 percent. Net sales increased at an average annual rate of 19.82 percent and the past five years historic earnings per share average gowth rate reached 6.91 percent. We currently give a “buy ” grade to HEP stock.
Plains All American Pipeline, L.P. (NYSE:PAA), through its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquid petroleum gas (LPG) products in the United States and Canada. PAA generate revenues at an average growth rate of 9.21 percent over the past five years. Earnings per share grew at a five-year average annual rate of 6.69 percent. The company sported dividend payouts at average 6.86 percent over the past five years. We currently give a “strong buy ” grade to PAA stock.
All the three high dividend stocks mentioned above not only have strong financial performance but also have seen their stock prices rising since this year. As of April 13, HEP stock price has increased 9.5 percent from $53.80 per share to 58.90 since the beginning of this year. EPD saw its stock price rose from $46.67 per share to $50.09 per share, a YTD rise of 7.3 percent. PAA stock climbed from $73.38 per to $78.85 per share, a YTD increase of 7.5 percent.
If these three companys continue to pay the same level dividends as the past five years (they will be likely to do so, given the current situation), the combination of a consistent dividend with increasing stock prices can offer an earnings potential powerful enough to investors to get excited about.