This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Energy Stocks Offering Generous Yields To Investors

Chris Lau, Kapitall: Looking for energy stocks with a high yield? Check out these oil and gas companies.

High yield from investments can be hard to come by, including those in energy stocks. Interest rates are coming off all-time lows. Treasury bond yields are rising steadily, making it more difficult to find stocks in the energy sector as suitable investments. But two characteristics should interest income investors: strong cash flow and a history of steady dividend payouts.

[Read more from Kapitall: Online Gambling Stocks: Will the US Cash In?]

First a look at bonds

Recently we’ve seen 10-year and 30-year bond yields rise sharply. The price of these bonds dropped, as illustrated in the chart below.

Click on the interactive charts to see data over time. Sourced from Zacks Investment Research.

<p>Your browser does not support iframes.</p>

Investors should watch these yields, because a lower bond price will mean higher rates, and this return will compete for that offered from dividend-paying energy stocks.

Energy stocks to consider

Statoil ASA (STO) pays a dividend that yields 3.94%. Cash flow grew steadily over the last 4 years, with a net increase in cash and cash equivalents rising from $54 million in the 12 months ending December 31, 2008 to $2.03 billion in the 12 months ending December 31, 2012.

[Read more from Kapitall: Online Gambling Stocks: Will the US Cash In?]

The company is strengthening its balance sheet by selling assets in the North Sea for $2.65 billion. This will reduce capital costs for Statoil. And the company is expanding into African waters. Statoil is partnered with BP p.l.c. (BP) and ConocoPhillips (COP) to invest in wells offshore from Angola.

One thing investors should note is that Statoil pays a dividend annually, not quarterly.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,093.18 +13.61 0.08%
S&P 500 2,002.29 +5.55 0.28%
NASDAQ 4,578.5760 +20.8810 0.46%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs