Whose Dividends Can You Trust in Energy?

Dividends are a great way to enhance the income-generating potential of your portfolio. However, not all dividend payments are a future guarantee. Today, Motley Fool energy analysts Taylor Muckerman and Joel South offer up two stocks they believe will be able to maintain peer-leading payouts. 

In Taylor's corner is Seadrill (NYSE: SDRL  ) . Despite its high payout ratio, he strongly believes that the tailwinds behind the offshore drilling industry will provide the company with ample cash flow to maintain or even increase its distribution. Not many companies come close to its 8% yield with the additional potential for material share price gains.

For Joel, the master limited partnership space is one that he has faith in from a distribution perspective. His choice? Boardwalk Pipeline Partners (NYSE: BWP  ) . Its fee-based revenue stream ensures future visibility and with a shortage in domestic infrastructure, demand is likely to remain high.

If you're an energy investor on the lookout for new opportunities, then you should consider one of the more exciting plays in the space: Seadrill. To help you size up this stock, one of The Motley Fool's top Stock Advisor analysts has authored a premium research report on the company, covering everything from its strengths and weaknesses to what to expect going forward. Simply click here now to claim your copy and determine whether Seadrill deserves a place in your portfolio.

Read/Post Comments (2) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 21, 2013, at 2:48 PM, jaybird43 wrote:

    There was a commercial that asked, "where's the beef". Investors should be asking, "where's the dividend?" O for the year. I have a very bad feeling. Has the debt load gotten too heavy? The last ex was 12/04/12. What's going on SDRL?

  • Report this Comment On May 21, 2013, at 5:17 PM, plankton97 wrote:

    SDRL paid out their 4Q dividend (usually paid in March) ahead of time in December to avoid the dividend tax increase.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2435698, ~/Articles/ArticleHandler.aspx, 9/25/2016 1:55:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:02 PM
BWP $16.75 Down -0.27 -1.59%
Boardwalk Pipeline… CAPS Rating: ****
SDRL $2.03 Down -0.07 -3.33%
Seadrill CAPS Rating: ***
ESV $7.23 Down -0.24 -3.21%
Ensco CAPS Rating: *****
RIG $9.10 Down -0.55 -5.70%
Transocean CAPS Rating: ****