This Day On The Street
Continue to site
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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs