Oil and gas stocks that pay dividends are a great investing option to take advantage of an energy sector that’s booming right now.
Oil and gas stocks that pay dividends let investors profit from the surging prices of commodities with the added advantage of generating a steady income stream through dividends.
And oil is a profitable place to start. Crude oil futures hit near a six-week high in mid-April.
Moreover, U.S. crude oil production is on the rise, averaging around 3.22 million barrels at the end of 2013 according to the U.S. Energy Information Administration (EIA). When offshore production is added into the equation, the average number of barrels produced per day has risen to around 7.84 million. That makes the U.S. accountable for 10% of the world’s total oil production right now.
Here, we’ve highlighted ten oil and gas stocks that pay dividends to get you started…
List Of Oil And Natural Gas Stocks That Pay Dividends
*All financial data reported on April 29, 2014.
Buckeye Partners Ltd.
Stock Symbol: BPL
Dividend Yield: 5.65%
Annual Payout: $4.35
Payout Ratio: 114.5%
Buckeye Partners is a limited partnership that mainly operates in the United States. At present, it is maintaining 100 terminals and 6,100 miles of oil pipeline. The company was founded in 1886 and is currently based in Texas.
Spectra Energy
Stock Symbol: SE
Dividend Yield: 3.38%
Annual Payout: $1.34
Payout Ratio: 87.6%
Spectra Energy operates as a gas infrastructure company. It is focused on the distribution, storage, transmission, processing, and gathering of natural gas. Spectra was founded in 2006 and is based in Houston, Texas.
Spectra Energy Partners
Stock Symbol: SEP
Dividend Yield: 4.01%
Annual Payout: $2.19
Payout Ratio: 85.0%
Also based out of Houston, Texas, Spectra Energy Partners stores and transports natural gas in the United States. The company boasts a state-of-the-art underground storage facilities located throughout the country
Williams Companies, Inc.
Stock Symbol: WMB
Dividend Yield: $3.84%
Annual Payout: $1.61
Payout Ratio: 145%
WMB focuses on transportation, processing, gathering, and production natural gas within the United States. Its operations span from the deep-water Gulf of Mexico, north to the Canadian oil sands. WMB was established in 1908 and is currently based in Tulsa, Oklahoma.
Energy Transfer Equity
Stock Symbol: ETE
Dividend Yield: 3.06%
Annual Payout: $1.44
Payout Ratio: 107.1%
Founded in 2002 and headquartered in Dallas, Texas, Energy Transfer Equity stores, transports, and deals in the midstream segment of natural gas in the United States, as well as selling propane. It is estimated that ETE is serving approximately 1 million customers at the present.
Regency Energy Partners
Stock Symbol: RGP
Dividend Yield: 6.86%
Annual Payout: $1.92
Payout Ratio: 400%
Regency Energy Partners is engaged in the transportation, marketing, contract compression, treatment, processing, and gathering of crude oil, refined products, and natural gas liquids (NGL). It was established in 2003 and is currently based in Dallas, Texas. If you’re seeking a high yield, RGP is a promising among oil and gas stocks that pay dividends.
Genesis Energy LP
Stock Symbol: GEL
Dividend Yield: 4.00%
Annual Payout: $2.20
Payout Ratio: 136.6%
Genesis energy focuses on the transportation of carbon dioxide, natural gas, and crude oil. The company operates in four distinct segments: Industrial Gases, Supply And Logistics, Refinery Services and Pipeline Transportation. GEL was established in 1996 and is based out of Houston, Texas.
Magellan Midstream Partners
Stock Symbol: MMP
Dividend Yield: 3.29%
Annual Payout: $2.45
Payout Ratio: 84.5%
MMP distributes, transports, and stores refined petroleum products. It mainly operates in three segments: Ammonia Pipeline System, Petroleum Terminals, and Petroleum Pipeline System. The company was established in 2000 and is based out of Tulsa, Oklahoma.
Plains All American Pipeline LP
Stock Symbol: PAA
Dividend Yield: 4.42%
Annual Payout: $2.52
Payout Ratio: 109.1%
Plain All American is a limited partnership company that engages in the storage, marketing, and transportation of oil pipelines. Established in 1988 and based out of Houston, Texas, the company operates and maintains 15,000 miles worth of pipelines.
Sunoco Logistics Partners LP
Stock Symbol: SXL
Dividend Yield: 3.06%
Annual Payout: $2.78
Payout Ratio: 93.9%
Established in Philadelphia, Pennsylvania in 2002, SXL deals with crude oil and refined products. It operates a logistics business that’s separated into four segments: Refined Products Pipelines, Terminal Facilities, Crude Oil Pipelines, and Crude Oil Acquisition and Marketing. SXL shares are up 20.4% year-to-date, making it a promising option among oil and gas stocks that pay dividends.
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