Dividend Comparison – Energy Sector

Energy (oil and natural gas) sector can be a very rewarding holding and should definitely be a part of every portfolio. Energy companies are some of the highest revenue companies in the world. A majority of them pay a healthy dividend and also manage to have a decent dividend growth rate (DGR). Following is a list of some of the largest energy companies with some of their key statistics as of Jul 2013.

Company Name Ticker Quote P/E Yield Payout Ratio 5-yr DGR
BP plc BP $40.78 5.84 5.14% 29% -6.39%
Chevron CVX $119.63 9.04 3.35% 27% 9.13%
ConocoPhillips COP $61.81 10.54 4.27% 43% 8.45%
Husky Energy HSE $27.62 13.86 4.34% 60% -1.74%
PetroChina PTR $112.55 11.9 4.02% 45% -3.91%
Royal Dutch Shell RDS.B $65.48 7.89 5.49% 30% 3.29%
StatOil ASA STO $20.33 6.56 5.7% 27% -7.19%
Suncor Energy SU $29.26 19.75 2.59% 34% 24.16%
Total SA TOT $47.88 9.86 6.33% 51% -0.7%
Exxon Mobil XOM $90.70 9.25 2.78% 23% 10.04%

My thoughts on Husky Energy

My portfolio holding of Husky Energy (HSE) has been paying dividends throughout my holding period (last couple of years), but I have not seen any increases in the dividend yield/payout. Moreover, the payout ratio is becoming dangerously high – currently at 60%. Oil and gas companies are capital intensive where they need to keep a lot of reserves for exploration, production, distribution etc. I am considering selling my position in HSE and picking up something else in the energy sector. I have CVX, COP and SU shortlisted. What do you think?

Disclosure: I own HSE.

Disclaimer: The information provided here is for educational purposes only. All opinions here are my personal opinions and should not be taken as financial advice. I am not qualified to be a financial advisor. Always consult with your financial advisor before investing in any of the companies mentioned on this blog.

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