9 Top Dividend Stocks in the Energy Sector after the OPEC Meeting

This is a guest contribution from The Dividend Manager

Energy stocks have seen a lot of volatility over the last two years as the supply of oil increased and the price of oil plummeted. In 2014, the price of a barrel of Crude Oil WTI was over $100. By the beginning of 2015, the price was under $50 per barrel. The final bottom in price occurred earlier this year when crude hit $25 a barrel. The chart below illustrates the downfall of crude oil prices since 2012. While the price has rebounded since the February lows, it has not come close to rebounding to its 2014 price high.

crudeoil1

On November 30th, 2016 the Organization of Petroleum Exporting Countries (OPEC) agreed to cut crude oil production by 1.2 million barrels a day. Currently, production is at a record high, at 33.6 million barrels per day. This will be the first cut in production since 2008, but there is still expected to be a significant surplus in oil supply. This production cut will likely drive up the price of Crude Oil WTI and make many energy companies more profitable.

The news sent many energy stocks soaring.The Energy Select Sector SPDR ETF (NYSE: XLE) jumped over 5% following the news (compared to year-to-date performance of +10%).This bump comes after many of these stocks jumped as part of the “Trump Rally” following the election, and has many energy investors excited about current performance and how the new production may impact oil prices going forward. WIth large tax cuts and decreased regulation on the way in 2017, many of the energy companies listed below should profit from increased economic growth.

The stocks below are the energy stocks that I maintain on our Top 100 Dividend Stocks list. My favorites include Occidental Petroleum, Schlumberger, Total SA ADR, and Valero. While some investors have been spooked by the energy sector in the last two years, there are many intriguing stocks with high dividends & excellent dividend growth prospects now that oil has crossed back above $50 a barrel.

Continue reading

Dividend Raises & Cuts for September 2016

Dividend growth investing is a popular model followed by the investing community to build assets. As part of my ongoing commitment to keep track dividend raises and cuts in the business world, I compile and share this list publicly. Start of each month, I also profile the top raises and cuts and profile the companies.

Note that only $2B+ (Midcap+) companies are included in this list.

Dividend raises were noted from companies such as: Campbell Soup Co (CPB), Verizon Communications Inc (VZ), Phillip Morris International Inc (PM), Royal Caribbean Cruises (RCL), Microsoft Corp (MSFT), Lockheed Martin Corp (LMT), American Express Co (AXP), Realty Income Corp (O), McDonald’s Corp (MCD) and many more. Top raises came from InterDigital Inc (IDCC), Goodyear Tire & Rubber Co (GT), Royal Caribbean Cruises (RCL), and CLARCOR Inc (CLC). Dividend Cuts were announced by Viacom Inc (VIA), Plains All American Pipeline L.P. (PAA) and Plains GP Holdings L.P. (PAGP).

Continue Reading Here >

 

Where to Get Good Dividend Investment Ideas

This is a guest contribution from Ben Reynolds.  Ben runs Sure Dividend, which is dedicated to finding high quality dividend growth stocks suitable for long-term investing using The 8 Rules of Dividend Investing.

The historical average price-to-earnings ratio for the S&P 500 is 15.6.  The S&P 500’s current price-to-earnings ratio is 24.2.  From a historical perspective, the market is very clearly overvalued.

It’s important to remember that the stock market is made up of individual stocks.  Not every member of the S&P 500 has a price-to-earnings ratio of 24.2.  Some are much higher, others much lower.

It is still possible to find great businesses trading at fair or better prices in today’s market.  This article takes a look at several different tools and lists to do just that.

Dividend Idea Generator #1:  Other Dividend Investors Portfolios

Many dividend bloggers share their own portfolios for others to view.  You can see Sabeel’s portfolio here (of Roadmap 2 Retire).  Sabeel’s portfolio is loaded with both high yield and high quality dividend growth stocks.

An example is Archer-Daniels-Midland (ADM).  Archer-Daniels-Midland currently has a dividend yield of 2.9% and price-to-earnings ratio of 16.1.  The company’s forward price-to-earnings ratio is even lower at 14.3.

Archer-Daniels-Midland is a has paid increasing dividends for 41 consecutive.  The company is also the largest farm procucts company in North America by a wide margin with its $24.8 billion market cap.  For comparison, its next largest competitor Bunge (BG) has a market cap of $8.2 billion.

You can read more about Sabeel’s purchase of Archer-Daniels-Midland here.

Continue reading

Multipronged Approach to Investing

I love Dividend Growth Investing. The main focus of my investing approach over the course of past few years has been Dividend Growth Investing. I am happy to subscribe to this model and still highly recommend it for investors looking for a reliable method of generating passive income. However, over the course of last year or so – as the bull market rages on in old age, valuations have been pushed to stratospheric levels amid the falling profits from strong blue chip companies. It is for this reason, I have decided to pursue a more multi-pronged approach to investing.

Regular readers of this blog may have noticed the change in my tone of the course of the past few months…I do not feel so hot about this market and the amount of purchases have dried up and my cash position has been building up steadily. Apart from a few pockets of companies, its become very hard to find compelling buys in this market as the debt-fueled share repurchase programs have made me question investing in certain companies.

Multipronged Approach to Investing

Strategy Falling in love with one single investment (or even an investment strategy) is not a very prudent behavior as an investor. Readers may be aware that we are already using a couple of different investing strategies in our portfolios. My wife’s portfolio uses a more passive approach to investing – using broad index funds via ETFs. My portfolio, on the other hand, focuses mainly on dividend growth investing and starting this month, a part of it will also be invested in index funds. This is a good diversification model. With dividend growth companies, I target some companies which I think will do well compared to its peers and let the investments compound over time. With the index funds, I let the market do what it does best; and allows me to instantly diversify providing me with a safety net, in case I had made a terrible mistake with my individual stock picks.

Continue reading

Why I Chose Dividend Growth Investing

Hi all,

I was invited to guest post at dividendgrowthinvestor.com. DGI is one of the first bloggers I followed about a decade ago that convinced me on following the path to dividend growth investing to achieve financial independence; and it was an honor to be invited. Thanks again for the opportunity, DGI! 🙂

In this article, I introduce readers to some of the mistakes I made early in my investing career and how I discovered dividend growth investing. I also highlight a few advantages that come with this investing model. Be sure to check it out.

You can find the post here >

cheers

R2R