3 Diverse Energy Investments Present Dividend Yields in the 7.8% to 13.2% Range and Triple-Digit Capital Growth
By: Ned Piplovic,
President Donald Trump’s signing of executive orders on Jan. 24 to revive the Keystone XL and the Dakota Access pipeline projects helped to boost the share prices of the pipeline builders TransCanada Corporation (NYSE:TRP) and Energy Transfer Partners, L.P. (NYSE:ETP) nearly 3% in less than a day.
Other energy stocks also could benefit on additional positive news from the Trump administration on deregulation of the industry. Already achieving strong dividend yields in the 7.8% to 13.2% range, as well as double- and triple-digit percentage capital appreciation in the last year, the three energy investments listed below are well positioned to rally higher under right circumstances.
The pipeline projects are expected to reduce U.S. dependence on foreign oil and to create jobs for American steel workers and others in the building of the infrastructure, advocates claim. The Obama administration in late 2015 blocked the proposed Keystone XL, which would stretch from Canada to Nebraska, due in large part to environmental concerns.
SunCoke Energy Partners LP (NYSE:SXCP)
SunCoke Energy Partners, a publicly traded master limited partnership, manufactures high-quality coke used in steel production furnaces.
The company started paying dividends in 2013 and has increased its annual payout every year since then. Its current quarterly dividend of $0.594 translates to a $2.38 annual payout and a 12.6% dividend yield using the most resent share price. When calculated on a trailing 12-month basis, its dividend yield increases to 13.2%.
The stock’s 52-week low price of $6.63 occurred on January 26, 2016. Subsequently, its share price rose 231% and reached a 52-week high of $21.95 first in November and then again in December. The most recent closing share price of $18.80 on January 24, 2017, is 14% lower than the most recent peak on December 17, 2016.
JP Energy Partners LP (NYSE:JPEP)
JP Energy Partners owns and operates assets for transportation and storage of crude oil, refined products and natural gas liquid. Its most recent quarterly dividend of $0.325 converts to a $1.30 annual payout and a 13.1% trailing 12-month dividend yield. JPEP has been paying dividends only for the last two years. Unless the company decides to increase the quarterly dividend at some point during the year, the annual dividend for 2017 will be same as the 2016 annual payout.
JPEP’s share price performed extremely well in 2017. From the 52-week low of $1.89 in early February, its share price climbed 431% before peaking at $10.41 on January 4, 2017. In the three weeks since the 52-week high, its share price fluctuated and closed at $10.29 on January 24, 2017, only 1.2 percent below the January peak price.
AmeriGas Partners LP (NYSE:APU)
AmeriGas Partners distributes propane gas, propane-related equipment and supplies in the United States through its subsidiaries and under multiple brands.
Its annual dividend of $3.74 is paid quarterly and translates to a 7.8% dividend yield. AmeriGas Partners has been paying a dividend since 1995 and has reduced the annual dividend only twice. Its dividend payout increased every year for the last six years. Over those six years, the annual dividend payout increased 35% from $2.785 to the current $3.74 — a 5.1% compound annual growth rate.
The company’s share price rose almost 40% from the 52-week low in January to reach the 52-week high of $50.11 by the end of July. Since July, its share price fluctuated and lost as much as 11.2% before December. However, since early December, its share price recovered almost all its losses and closed on January 24, 2017, at $48.47, only 3.3% lower than the July high.
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