Everyone loves a stock that pays a huge dividend, but finding one you can trust is not always easy. After all, what good is a high dividend yield if the company cuts the payout?
Fortunately, there is hope. The energy industry can be a great place to look for big-time dividend stocks. Energy is the foundation of society; it’s everywhere, whether used for transportation, heating your home, or manufacturing the goods and services we buy.
After some digging, I found a handful of high-yield energy stocks you can trust to keep delivering hefty dividends to your portfolio.
1. A diversified energy giant in Canada
Dividend yield: 6.6%
Enbridge (NYSE: ENB) is a North American energy company. Its pipelines transport oil and natural gas throughout the continent, including 20% of the natural gas America consumes. Additionally, it operates North America’s largest gas utility. These two businesses generate most of Enbridge’s profits, though the company also dabbles in renewable energy generation, which could be a long-term growth opportunity.
Enbridge enjoys very steady revenue from its core pipeline and utility businesses. Not only do people always need energy, but these two industries are also heavily regulated, which helps limit competition.
Slow and steady business performance is fertile ground for dividends; Enbridge has paid and raised its dividend for 28 consecutive years. So, investors get a high starting yield, and the payout grows, too. Enbridge expects to earn approximately 5.60 Canadian dollars per share in distributable cash profits in 2024 while paying out CA$3.66. That’s a healthy 65% dividend payout ratio, leaving some breathing room for future increases and a safety net if the business stumbles.
2. A long-standing oil major
Dividend yield: 4.6%
Chevron (NYSE: CVX) is an integrated oil and gas company with upstream and downstream operations. That means Chevron explores and drills for fossil fuels, refines them, and sells them to the market.
The company dates back to the 1800s as Pacific Coast Oil. Since the oil and gas industry dates back to the Industrial Revolution,…
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