by Robert Hauver
After rising nearly 24% in 2013, the Energy sector continues to be a winner in 2014, having risen 6.69% as of May 21, 2014. But how have dividend stocks within this sector fared? As it turns out, there are 3 winners from the Energy section of our High Dividend Stocks by Sector Tables, that have handily outperformed the market as a whole, and whose performance has also beaten the Energy sector’s by a long shot in 2014.
These 3 energy stocks are all LP’s, which offers you additional benefits – LP’s must pay out 90% of their earnings, in return for not paying taxes, which often results in a high dividend yield; and tax efficiency, since the high yield distributions that you receive will be partially sheltered, via offsets, such as depreciation, on the K-1 form you’ll receive at tax time.
The full company profiles are at the bottom of this article.
Here’s how these stocks have fared in 2014 and over the past trading month. Compare this with the S&P, which was up 2.15% year-to-date, as of 5/21/14, and up 13.11% over the past year:
Dividends: All 3 of these stocks yield over 5%, (GLP yields over 6%), and go ex-dividend in late July/Early August. They’ve all steadily raised their dividends over the past 5 years. Coverage-wise, GLP leads the pack, with a 2.6x distribution coverage ratio. (LP’s refer to their dividends as distributions, and their shares as units.) Click here to read more…
Disclaimer: This article was written for informational purposes only. Author not responsible for any errors, omissions, or actions taken by third parties as a result of reading this article.
Copyright DeMar Marketing 2014. All rights reserved.