In this article, we take a look at the 5 energy stocks with over 3% dividend yields. If you want to check out our detailed analysis on dividend yields in the energy sector, check out the 10 Energy Stocks with Over 3% Dividend Yield.
5. ONEOK, Inc. (NYSE:OKE)
Dividend Yield: 6.05% (As of May 11)
ONEOK, Inc. (NYSE:OKE) is an Oklahoma-based natural gas company that is also a part of the S&P500 index. ONEOK, Inc. (NYSE:OKE) primarily focuses on connecting supply basins to marketplaces. It pays out a quarterly dividend of $0.93 against its shares.
The hedge fund sentiment surrounding the ONEOK, Inc. (NYSE:OKE) stock is generally positive. Over 30 funds were invested in the stock in the last quarter of 2021 with Adage Capital Management being the lead holder with shares worth a little over $27 million. The hedge fund most bullish on OKE in the same quarter was Engineers Gate Manager which increased holding by 746%.
4. Devon Energy Corporation (NYSE:DVN)
Dividend Yield: 7.85% (As of May 11)
Devon Energy Corporation (NYSE:DVN) is a Delaware based company involved in the exploration of oil and gas across the US. The company is engaged in exploration at various sites including Rocky Mountains, Delaware Basin, Barnett Shale etc.
Devon Energy Corp’s cash flow continues to expand allowing it to make massive pay-outs in dividends. Its quarterly dividend is a whopping $1.27 per share, one of the highest in the industry, up from $0.31 in 2021.
The company laid out the dividend policy of fixed-plus-variable last year which is to say that it augments its quarterly dividend payments to shareholders with up-to 50% of its surplus cash flow each quarter. Speaking of surplus cash flow, the energy giant came out with 14% higher operating cash flow at $1.8 billion in the first quarter of 2022 than the previous quarter.
Rising oil prices and gas demand in the near to medium future holds promise for increasing cash flows as well as dividend increases. On May 4, Truist analyst Neal Dingmann increased the price target on DVN to $100 from $91, keeping a ‘Buy’ rating on the shares.
The analyst believes that the company is likely to continue its multi-pronged shareholder return program of leading with dividends coupled with “meaningful buybacks” that are anticipated to rise. The analyst also told investors in a research note that quarterly cash flows are also expected to rise to $2 billion in the next quarter.
3. Equitrans Midstream Corporation (NYSE:ETRN)
Dividend Yield: 8.38% (As of May 11)
Equitrans Midstream Corporation (NYSE:ETRN) is a natural gas company based in Pennsylvania. The company’s core focus is on gas transmission, storage, production and development across the Appalachian Basin. The company provides services primarily in Pennsylvania, Ohio and West Virginia.
Heronetta Management is invested in the company as of the Q1 2022 holding shares worth a little over $161,000.
2. Antero Midstream Corporation (NYSE:AM)
Dividend Yield: 9.16% (As of May 11)
Antero Midstream Corporation was created by Antero Resources Corporation to service its natural gas and NGL production processes primarily in the Appalachian Basin. It is headquartered in Denver, Colorado. Antero Midstream Corporation (NYSE:AM) pays a quarterly dividend of $0.23.
The company has a reasonable current ratio of 0.58 as of Q1 of 2022 as well as a good return on equity at 14%. Besides the dividend, the cash flows are expected to increase given the macro-dynamics of EU planning to ban Russian energy and looking to diversify their options. One of the expected results is increased demand from the US midstream corporations.
1. Crestwood Equity Partners LP (NYSE:CEQP)
Dividend Yield: 9.66% (As of May 11)
Crestwood Equity Partners LP (NYSE:CEQP) owns, maintains and operates midstream assets that are located primarily in the Williston Basin, Powder River Basin and Barnett Shale. The company is primarily focused in the gathering, treating and processing of natural gas. Other than that, it stores, transports and markets natural gas liquids and crude oil.
Two of the most prominent holders in the company in the last quarter of 2021 were Springbok Capital and Citadel Investment Group with the former’s equity in the company amounting to $4.7 million and the latter’s to $2.8 million after a 660% increase in Citadel Investment Group’s holdings in the Crestwood Equity Partners LP.
CEQP’s coverage was assumed with a ‘Buy’ rating with a price target of $36 on May 2 by Truist analyst Neal Dingmann.
You can also take a peek at 5 Best Clean Energy Stocks to Buy Today and 5 Dividend Stocks With Over 5% Yield
