The energy sector remains a top draw for investors seeking a high total return. Thanks to rising demand and geopolitical risks, stocks in the sector have been delivering on both fronts. And our latest Best Energy Dividend Stocks List pick has been stellar for investors, offering a high 9% yield and plenty of special dividend payouts.
Our pick is one of the best “frackers” around, with plenty of acreage in key shale regions. The secret is that our pick has been able to keep its costs low through drilling technology and a focus on the best regions. With a high oil cut as well as plenty of natural gas [producing wells, our pick has been able to feast on both the demand for crude oil as well as utilities switching to natural gas for power generation. The combination has made our pick a cash flow machine.
The best part is our pick continues to share that excess cash with investors. As one of the first drillers to adopt a Base+ dividend model, it used its extra cash to boost its dividend, increase buyback activity, reduce debt and hand out lucrative dividends. With oil prices still well above the company’s base costs, more should be in store.
To make room for our E&P pick, we’ve been forced to remove a midstream firm from the list.
You can check out the Best Energy Dividend Stocks List to explore all the stocks.
