5 Energy Stocks with Highest Dividends

Page 5 of 5

1. Frontline plc (NYSE:FRO)

Dividend Yield as of June 30: 9.00%

Topping our list of the Energy Stocks with Highest Dividends is Frontline plc (NYSE:FRO), a world leader in international seaborne transportation of crude oil. The company has one of the world’s largest fleets of VLCC and Suezmax tankers, and LR2/Aframax tankers.

On June 24, BTIG upped its price target on Frontline plc (NYSE:FRO) from $45 to $55, while maintaining a ‘Buy’ rating on the shares. The target boost, which reflects a robust upside of over 55% from the current levels, comes as part of the analyst firm’s broader research note on Oil and Tanker markets.

BTIG noted that although the 60-day waiver on Iranian oil sanctions has boosted oil exports from the Arabian Gulf, a lot more work is required before the conventional tanker fleet starts transporting cargo from the region. The firm also expects the crude tanker demand to strengthen in the post-war period, since major crude importers from Asia will look to replenish their inventories.

Notably, the cost of hiring tankers in the Persian Gulf has nearly doubled following the US-Iran MoU, as the region’s producers scramble to move the oil that had been stranded for months.

While we acknowledge the potential of FRO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FRO and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best NYSE Stocks to Buy for Dividends and 12 Best NASDAQ Stocks to Buy for Dividends

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 5 of 5
1281292 - 11759070 - 1