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The broader markets had a dismal month of January – the Dow Jones Industrial Average was down 5.3% and the S&P 500 dipped 3.6% – but these liquefied natural gas (LNG) stocks all boasted strong returns.
The outlook for LNG stocks continues to look bright as well. Increased demand for natural gas in China, the increased supply of shale gas in the United States, and the high number of export facilities awaiting approval for construction in the United States are all bullish signs for LNG investors.
These five LNG stocks vastly outperformed the markets in January and have room to continue upward…
Top LNG Stocks in January 2014
DHT Holdings Inc. (NYSE: DHT) posted an impressive 20% gain in January, when the broader markets were all posting losses. DHT started 2014 trading at $6.84 and finished the month at $8.19 per share. Shareholders are also provided a modest dividend yield of 1%.
DHT is a Bermuda-based shipping company that owns eight double-hull crude tankers. As the LNG industry continues to grow and the United States begins exporting LNG globally, transportation will be in high demand. That makes LNG shipping stocks like DHT strong plays moving forward.
Dominion Resources, Inc. (NYSE: D) received government approval in September 2013 to convert its LNG import facility in Cove Point, Md., into an export facility. After the $3.5 billion construction project is completed, Dominion is expected to begin exporting in 2017. Some of Dominion's more notable customers include the Japanese companies Tokyo Gas and Sumitomo and the Indian energy company Gail.
In January, D stock gained 5%. The stock has climbed ever further in February and currently trades at $69.29. D stock opened 2014 at $64.69. Dominion is also one of our favorite LNG dividend stocks, offering investors a quarterly dividend of $0.60, or 3.5%.
Sempra Energy (NYSE: SRE) is currently awaiting government approval on its Cameron LNG export facility in Louisiana. This is another LNG project that will convert an import facility into an export facility. Sempra is working with the Japanese companies Mitsui and Mitsubishi on the project, and they will be two of Sempra's largest customers when the facility is finished.
In January, SRE stock was up 3.3%. The stock has continued higher through February and is currently priced a $94.16 a share. Shareholders are given a quarterly dividend payment of $0.63, or 2.7%.