As supplies have turned into surpluses and demand remains mixed, energy prices have remained in flux. For many smaller firms in the sector, this has been a nightmare, full of cash flow issues and dividend cuts. But our latest Best Dividend Growth Stocks Model pick, the energy price environment is just background noise. Moreover, investors can still grab our pick’s special dividend payout before the stock goes ex-dividend on Tuesday, March 28!
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.
Our pick happens to be one of the largest exploration and production (E&P) firms in the world. This size and scope provide economies of scale that most smaller energy firms can’t afford to do. The extra boost is that our pick was one of the first energy firms to get “lean and mean” during the last energy downturn. This forced it to focus on the most profitable producing regions. With low-cost shale now running the show and new technology pulling out more energy products from its wells than ever before, our pick has prospered.
Going forward, steady demand and the current environment is a major tailwind for our pick. Thanks to its position, it generates billions in cash flow – enough to pad out its regular and special dividends and conduct smart M&A expansion projects.
For investors, our pick and its nearly 2% dividend yield make for an ideal selection in your portfolio.
