When you produce commodities, the higher the price for the material, the more money you make. It is as simple as that. For the energy sector, surging crude oil prices have meant a lot of profits in recent quarters. Our latest Best Dividend Growth Stocks Model Portfolio pick is testament to that fact!
After a smart transformation during the bust, our pick has become one of the top producers of crude oil and natural gas in the country. With key positions in low-cost shales and focus on drilling technology, our pick has continued to see its profit margins surge and earnings grow with the rising prices.
Our pick has quickly emerged as a dividend champion. With a new base plus variable dividend policy, investors have been able to feast on rising cash flows with a steady diet of dividend increases in recent quarters.
With a huge 7%+ current yield and plenty of growth ahead, our energy pick makes for a top dividend growth opportunity. Watch for when the stock goes ex-dividend on Friday, September 16 (estimated date).
To make room for our energy pick, we’ve removed a consumer products firm from the portfolio.
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.
