If you’re interested in the energy sector and want to earn a steady stream of income from some of these stocks, then the 10 best energy dividend stocks for income investors will be great stock picks for you.
Several hedge funds that Insider Monkey tracks became upbeat about energy company stocks during the second quarter based on their recent wave of 13F filings. Over the next few pages, we have analyzed the best energy company stocks for investing based on that hedge fund sentiment. That’s what we do at Insider Monkey and our flagship strategy has returned 44.2% since February 2016 vs. a 29.6% gain for the S&P 500 index ETF (SPY). Our most recent stock picks, which were disclosed to our subscribers in the middle of February, beat the market by 5 percentage points in the three months that followed and our latest picks were released in the middle of May. Our system is easy for investors to implement, with just a small batch of trades to be executed once per quarter.
With hundreds of publicly traded companies in the energy sector, there are lots of great stocks to buy that provide a steady income stream from dividends and other means. But for the purposes of this list, we only included energy companies that are part of the S&P 1500, because there are few better indicators of a company’s longevity than being part of the well-regarded index. Out of the 84 energy companies in the S&P 1500, 42 currently pay dividends. However, some of these stocks only pay out dividends worth as little as $0.04 per year, so they have little use for those interested in income investing.
For this list, we have only included energy company stocks with dividend yields of at least 3%. This requirement brings the list of good income investment energy stocks down to 17. From there, we ranked the stocks according to hedge fund sentiment as of the end of the first quarter of 2017. Head to the next page to discover the 10 best energy dividend stocks for income investors.
Also, be sure to check out Insider Monkey’s list of the 10 best blue chip dividend stocks in 2017.