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Global demand for liquefied natural gas (LNG) is expected to double by 2025, and that has investors looking for the best LNG stocks to buy now.
But it's not just stock performance that can be enticing for LNG investors. Many LNG stocks offer their shareholders hefty dividend yields as well – some close to 7%.
Dividend-paying stocks typically outperform non dividend-paying stocks by a wide margin. Data from Ned Davis Research points out that dividend stocks annually outperformed non-dividend stocks by 8% from 1972 to 2012.
Dividend-paying LNG stocks are a great way to invest in a quickly growing market, while also supplementing returns with quarterly payouts.
Here are six of the best LNG stocks to buy now for investors who want yield as well as share-price growth.
Six of the Best LNG Stocks Paying a Dividend
Energy Transfer Partners LP (NYSE: ETP) stock is up a modest 1.5% in the last month, and nearly 15% in the last year. Shareholders also receive a quarterly dividend of $0.92 from ETP, good for a 6.8% yield. Energy Transfer Partners owns one of the four LNG export facilities that had received government approval through 2013. ETP's facility is located in Lake Charles, La.
Teekay Tankers Ltd. (NYSE: TNK) stock has gained 3.8% in the month of February and is up nearly 31% in the last three months. As its name suggests, TNK is a transporter and has 29 tankers in its fleet that are used solely for LNG. Overall, the company owns 67 tankers. TNK is a great example of an LNG penny stock, as it currently trades just above $3.50 per share and has a market cap of $295 million. Quarterly dividend payments of $0.03 per share may not seem impressive at first glance, but that's a yield of 3.4% for shareholders.
Due to recent developments in the Panama Canal and in the LNG industry in general, TNK is a stock that Money Morning is bullish on in 2014.