In this article, we will be looking at 10 energy dividend stocks with over 2% yield.
Ever since the COVID-19 pandemic hit the globe, every industry has had to go through major and rapid transformations, sometimes to their disadvantage, and other times to their benefit. The energy industry is no exception to the above claim, with a changed US President bringing in a different perspective on how to approach the industry, and a drastically different approach to the renewables sector as well. As such, with the energy sector going through a serious of unprecedented changes in light of the pandemic and other factors, stocks within the sector like NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), Enbridge Inc. (NYSE: ENB), and First Solar, Inc. (NASDAQ: FSLR), among others, have been plunged into a more volatile situation than ever seen before.
According to a Renewable Energy Market Update published by the International Energy Agency this May for the year 2021, in 2020 renewable capacity additions per year rose by about 45% to roughly 280 gigawatts, while in 2021, high capacity additions became another form of the “new normal” whereby renewable sources made up 90% of new power capacity expansion across the globe. Within the US, in light of federal tax credit extensions and new emissions reduction targets alongside Biden’s infrastructure bill, the growth of the renewables sector in the energy industry is expected to be stable and positive.
Regardless of the fact that the energy industry’s renewables sector seems to be doing well, that does not mean that traditional energy companies and stocks are set to fare worse. In fact, a Bloomberg report published on August 15th just mentioned that despite the United Nations recently releasing a climate change report with updates on the gradually worsening situation, energy and traditional energy stocks managed to hold steady and weather the storm without many losses. In fact, instead of them faring worse, they have rather managed to be among the best-performing stocks in 2021 so far. Shares of traditional energy companies have been notoriously leading the S&P 500 to greater gains since 2021 began, and this August has been little different, showcasing the fact even if the world begins gravitating towards green energy in light of climate change concerns, traditional energy will always remain popular among investors because of the returns and profits it promises.
Like the energy sector, the entire hedge fund industry is still feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Let’s now look at the 10 energy dividend stocks with over 2% yield.
Our Methodology
We have selected Russell 2000 index constituents, or small-cap energy stocks, to compile our list of energy dividend stocks. The stocks are also among the more popular ones with hedge funds today, based on Insider Monkey’s tracked data of 866 hedge funds. They also mostly have positive analysts’ ratings and strong fundamentals, demonstrating core business strengths.
For each stock, we have mentioned its hedge fund holders and dividend yield. The stocks have thus been ranked from the lowest to the highest dividend yield.
Energy Dividend Stocks with Over 2% Yield
10. Scorpio Tankers Inc. (NYSE: STNG)
Number of Hedge Fund Holders: 20
Dividend Yield: 2.8%
Scorpio Tankers Inc. (NYSE: STNG), an energy company operating in the seaborne transportation of refined petroleum products across the world, ranks 10th on our list of energy dividend stocks with over 2% yield. By the end of this March, the company owned, finance leased, or bareboat chartered about 131 product tankers.
This August, DNB Markets analyst Jorgen Lian upgraded shares of Scorpio Tankers Inc. from Hold to Buy, placing a price target of $21 on the stock as well.
In the second quarter of 2021, Scorpio Tankers Inc. had an EPS of -$0.94, beating estimates by $0.03. The company’s revenue was $138.05 million, beating the previous quarter’s $132.78 million revenue. Scorpio Tankers Inc. has gained 33.65% year to date and 16.26% in the past year.
By the end of the first quarter of 2021, 20 hedge funds out of the 866 tracked by Insider Monkey held stakes in Scorpio Tankers Inc. worth roughly $87.8 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $44 million.
Like NextEra Energy, Inc., Chevron Corporation, Enbridge Inc., and First Solar, Inc., Scorpio Tankers Inc. is a good stock to invest in.
9. Helmerich & Payne, Inc. (NYSE: HP)
Number of Hedge Fund Holders: 21
Dividend Yield: 3.6%
Helmerich & Payne, Inc. is a drilling services and solutions provider to exploration and production companies. The company operates through its North America Solutions, Offshore Gulf of Mexico, and International Solutions segments. It ranks 9th on our list of energy dividend stocks with over 2% yield.
This July, Helmerich & Payne, Inc. shares were upgraded to Neutral from Underperform by BofA analyst Chase Mulvehill.
In the fiscal third quarter of 2021, Helmerich & Payne, Inc. had an EPS of -$0.57, missing estimates by $0.02. The company’s revenue was $332.21 million, up 4.68% year over year and beating estimates by $7.49 million. Helmerich & Payne, Inc. has gained 19.14% year to date and 48.47% in the past year.
By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in Helmerich & Payne, Inc. worth roughly $152 million. This is compared to 19 hedge funds in the previous quarter with a total stake value of approximately $194 million.
Like NextEra Energy, Inc., Chevron Corporation, Enbridge Inc., and First Solar, Inc., Helmerich & Payne, Inc. is a good stock to invest in.
8. DHT Holdings, Inc. (NYSE: DHT)
Number of Hedge Fund Holders: 22
Dividend Yield: 3.8%
DHT Holdings, Inc. (NYSE: DHT) is an owner and operator of crude oil tankers in Monaco, Singapore, Oslo, and Norway. The company ranks 8th on our list of energy dividend stocks with over 2% yield and as of this March, owned a fleet of 28 crude carriers with a capacity of about 8,660,835 deadweight tons.
This August, H.C. Wainwright upgraded shares of DHT Holdings, Inc. from Neutral to Buy. The firm’s analyst Magnus Fyhr also raised his price target on DHT Holdings, Inc. shares from $7.50 to $8.
In the second quarter of 2021, DHT Holdings, Inc. had an EPS of -$0.09, beating estimates by $0.01. The company’s revenue was $45.25 million, missing estimates by $5.11 million.
By the end of the first quarter of 2021, 22 hedge funds out of the 866 tracked by Insider Monkey held stakes in DHT Holdings, Inc. worth roughly $105 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $88 million.
Like NextEra Energy, Inc., Chevron Corporation, Enbridge Inc., and First Solar, Inc., DHT Holdings, Inc. is a good stock to invest in.
7. Solaris Oilfield Infrastructure, Inc. (NYSE: SOI)
Number of Hedge Fund Holders: 10
Dividend Yield: 3.9%
Solaris Oilfield Infrastructure, Inc. (NYSE: SOI), a designer, manufacturer, and renter of mobile proppant and chemical management systems for the unloading, storing, and delivery of proppant and chemicals at oil and natural gas sits in the US, ranks 7th on our list of energy dividend stocks with over 2% yield. The company offers trained personnel and logistics services alongside other services as well.
This February, B. Riley Securities raised its price target on shares of Solaris Oilfield Infrastructure, Inc. from $12.50 to $14. Analyst Thomas Curran led the move, while also reiterating a Buy rating on Solaris Oilfield Infrastructure, Inc. shares.
In the second quarter of 2021, Solaris Oilfield Infrastructure, Inc. had an EPS of -$0.03, in line with estimates. The company’s revenue was $35.18 million, up 276.69% year over year and beating estimates by $5.86 million.
By the end of the first quarter of 2021, 10 hedge funds out of the 866 tracked by Insider Monkey held stakes in Solaris Oilfield Infrastructure, Inc. worth roughly $43.9 million. This is compared to 12 hedge funds in the previous quarter with a total stake value of approximately $32.8 million.
Like NextEra Energy, Inc., Chevron Corporation, Enbridge Inc., and First Solar, Inc., Solaris Oilfield Infrastructure, Inc. is a good stock to invest in.
6. Altus Midstream Company (NASDAQ: ALTM)
Number of Hedge Fund Holders: 4
Dividend Yield: 4.5%
Altus Midstream Company (NASDAQ: ALTM) is the owner of gas gathering, processing, and transmission assets in the Permian Basin, West Texas. The company ranks 6th on our list of energy dividend stocks with over 2% yield and is based in Houston, Texas.
In the second quarter of 2021, Altus Midstream Company had a revenue of $35.59 million, up 12.6% year over year and beating estimates by $2.92 million. Altus Midstream Company has gained 27.57% in the past 6 months and 46.41% year to date.
By the end of the first quarter of 2021, 4 hedge funds out of the 866 tracked by Insider Monkey held stakes in Altus Midstream Company worth roughly $2.33 million. This is compared to 4 hedge funds in the previous quarter with a total stake value of approximately $2.8 million.
Like NextEra Energy, Inc., Chevron Corporation, Enbridge Inc., and First Solar, Inc., Altus Midstream Company is a good stock to invest in.
5. Brigham Minerals, Inc. (NYSE: MNRL)
Number of Hedge Fund Holders: 13
Dividend Yield: 5.1%
Brigham Minerals, Inc. (NYSE: MNRL) owns and operates a mineral and royalty interests portfolio. The company owns royalty interests in about 5,398 oil wells and 587 natural gas wells, as of December 31st, 2020. It ranks 5th on our list of energy dividend stocks with over 2% yield.
This June, Barclays analyst Jeanine Wai raised her price target on shares of Brigham Minerals, Inc. from $17 to $18. Wai also reiterated an Overweight rating on the company’s shares.
In the second quarter of 2021, Brigham Minerals, Inc. had an EPS of $0.25, in line with estimates. The company’s revenue was $37.81 million, up 199.97% year over year and beating estimates by $1.54 million. Brigham Minerals, Inc. has gained 17.50% in the past 6 months and 65.96% year to date.
By the end of the first quarter of 2021, 13 hedge funds out of the 866 tracked by Insider Monkey held stakes in Brigham Minerals, Inc. worth roughly $54.3 million. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $73.9 million.
4. Falcon Minerals Corporation (NASDAQ: FLMN)
Number of Hedge Fund Holders: 21
Dividend Yield: 5.6%
Falcon Minerals Corporation (NASDAQ: FLMN) works to acquire and own mineral, royalty, and overriding royalty interests in oil and natural gas properties in North America. The company ranks 4th on our list of energy dividend stocks with over 2% yield.
This March, Wells Fargo’s Nitin Kumar upgraded shares of Falcon Minerals Corporation from Equal Weight to Overweight. The analyst also raised his price target on the stock from $5 to $8.
In the second quarter of 2021, Falcon Minerals Corporation had an EPS of $0.08, in line with estimates. The company’s revenue was $16.16 million, up 164.28% year over year and beating the previous quarter’s $12.50 million revenue. Falcon Minerals Corporation has gained 6.64% in the past 6 months and 34.33% year to date.
By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in Falcon Minerals Corporation worth roughly $42.7 million. This is compared to 26 hedge funds in the previous quarter with a total stake value of approximately $30.2 million.
3. Frontline Ltd. (NYSE: FRO)
Number of Hedge Fund Holders: 10
Dividend Yield: 6.9%
Frontline Ltd. (NYSE: FRO) is a shipping company working for the seaborne transportation of crude oil and oil products across the globe. The company owns and operates oil and product tankers and ranks 3rd on our list of energy dividend stocks with over 2% yield.
Danske Bank just this June upgraded shares of Frontline Ltd. from Hold to Buy. Analyst Anders Karlsen led the move, while also placing a $9.70 price target on the shares.
In the first quarter of 2021, Frontline Ltd. had an EPS of $0.04, beating estimates by $0.12. The company’s revenue was $107.11 million, also beating estimates by $11.91 million. Frontline Ltd. has gained 15.63% year to date.
By the end of the first quarter of 2021, 10 hedge funds out of the 866 tracked by Insider Monkey held stakes in Frontline Ltd. worth roughly $10.6 million. This is compared to 6 hedge funds in the previous quarter with a total stake value of approximately $47.6 million.
2. Equitrans Midstream Corporation (NYSE: ETRN)
Number of Hedge Fund Holders: 28
Dividend Yield: 7%
Equitrans Midstream Corporation (NYSE: ETRN) works to operate and acquire natural gas gathering, transmission, and storage, and water services assets in the Appalachian Basin for their development. The company ranks 2nd on our list of energy dividend stocks with over 2% yield and operates through its Gathering System, Transmission and Storage System, and Water Service System segments.
This June, Barclays analyst Christopher Tillett raised his price target on shares of Equitrans Midstream Corporation from $7 to $9.
In the second quarter of 2021, Equitrans Midstream Corporation had an EPS of $0.13, missing estimates by -$0.09. The company’s revenue was $348.30 million, up 2.26% year over year and beating estimates by $7.42 million. Equitrans Midstream Corporation has gained 17.08% in the past 6 months and 10.72% year to date.
By the end of the first quarter of 2021, 28 hedge funds out of the 866 tracked by Insider Monkey held stakes in Equitrans Midstream Corporation worth roughly $361 million. This is compared to 25 hedge funds in the previous quarter with a total stake value of approximately $407 million.
1. Archrock, Inc. (NYSE: AROC)
Number of Hedge Fund Holders: 16
Dividend Yield: 7.2%
Archrock, Inc. (NYSE: AROC) is an energy infrastructure company operating in the US through its Contrac Operations and Aftermarket Services segments. The company ranks 1st on our list of energy dividend stocks with over 2% yield and works to design, outsource, own, install, operate, service, repair, and maintain its fleet of natural gas compression equipment to provide natural gas compression services in the oil and gas industry.
As of this March, B. Riley Securities holds a Buy rating on shares of Archrock, Inc.. The firm’s analyst Thomas Curran also raised his price target on the stock from $8.50 to $12 during the same month.
In the second quarter of 2021, Archrock, Inc. had an EPS of $0.06, in line with estimates. The company’s revenue was $195.62 million, beating the previous quarter’s revenue of $195.43 million by a small margin. Archrock, Inc. has gained 11.31% in the past year.
By the end of the first quarter of 2021, 16 hedge funds out of the 866 tracked by Insider Monkey held stakes in Archrock, Inc. worth roughly $46.6 million. This is compared to 11 hedge funds in the previous quarter with a total stake value of approximately $21.9 million.
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This article is originally published at Insider Monkey.
