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Best Bets in Oil Dividends

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April 11, 2012 – Comments (0) | RELATED TICKERS: RES , EXLP , USO

f stock options offer dividends, its always good news for investors. How good those dividends are can be a different story. In this case, there are a few oil dividends worth taking a closer look at. Here are a couple companies we don’t mention often, but are worth mentioning in this case. Let’s take a look at some of the research put together by Selena Maranjian.

"Exterran Partners stands out among the highest-yielding stocks in oil-field services, recently yielding 9%. But it’s not necessarily your best bet, since its payout ratio tops 200%, revealing the company paying out much more than it is earning and suggesting that its dividend may be unsustainable if it doesn’t up its income.

Instead, let’s turn to the dividend growth rate, where Core Laboratories leads the way with a five-year average annual dividend growth rate of 76%. That growth rate is so steep, though, that it will be hard to maintain for long. RPC‘s (NYSE: RES  ) 20% growth rate is also steep. Both companies have low payout ratios, though, leaving room for growth, for at least a while. RPC’s fans like its low debt and its above-industry-average profit margins, among other things. The stock fell recently on a poor earnings report, but some think that was a market overreaction."

 

Find charts here: 

http://turnkeyoil.com/2012/04/07/best-bets-in-oil-dividends/

 

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