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5 Oil Companies Dishing Out Good Dividends

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September 02, 2011 – Comments (0) | RELATED TICKERS: BP , COP , CVX

Good dividends are always something an investor looks at when considering stock options. Often the larger companies provide stronger dividends. In the oil and gas sector, this is no different.Stock Market Pundits agrees that these 5 big energy companies provide some of the best out there.

 

Royal Dutch Shell – A (RDS.A)

 

Shell is a large multinational which only a few years ago had some serious problems in regards to its investments in foreign countries, reserve replacement and lack of oversight within the company. The company appears to be on the right track now, however it still must be noted the issues that they face in Western Africa with unrest and constant attacks on its infrastructure – including that in the deepwater.

Shell does offer investors a $3.36/share dividend which yields 5.2% at its current share price. The company’s P/E is just above 7 and another interesting observation is that the EPS ($8.97) is above the P/E ratio – not something you see every day. Like other multinationals, the $200 billion market cap company has been making moves to position themselves to be successful in the future and keep the payouts flowing to investors.

BP p.l.c (BP)

 

BP, formerly British Petroleum, recently had many problems. It appears that investors are satisfied that the company will not have issues financing its dividend or any going concern questions raised as a result of the oil spill in the Gulf of Mexico. BP has sold off many of its lower margin or slow growth assets and shored up the balance sheet. Today the company is focused on exploring for big finds in hard to explore areas, a niche only the largest of companies are able to undertake due to cost.

BP pays investors a dividend of $1.68/share which provides a yield of 4.4%. According to Yahoo Finance, BP has a payout ratio of 13%, allowing the company to continue on its growth strategy with plenty of room for raising the dividend in the future. Although there are still questions regarding litigation resulting from the spill, the company has set aside many billions of dollars already so we believe any future needs will have already been set aside."

 

 Find additional research here: http://turnkeyoil.com/2011/09/02/5-oil-companies-dishing-out-good-dividends/

 

 

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