1 Dividend You Won't Regret Buying

ConocoPhillips’ dividend is one of the best in the oil patch, and light years ahead of Devon Energy and Anadarko Petroleum.

Matthew DiLallo
Matthew DiLallo
Jul 17, 2014 at 11:31AM
Energy, Materials, and Utilities

Source: ConocoPhillips. 

I have owned a lot of really bad dividend stocks over the years. However, one stock I've never regretted buying is ConocoPhillips (NYSE:COP). It's the first energy stock I ever purchased, and it has fueled dividends into my portfolio ever since. I don't expect to it to ever be a purchase I regret since ConocoPhillips is poised to continue producing dividends for as far as the eye can see.

The reasons I think ConocoPhillips is a dividend stock I'm unlikely to regret are three-fold. First and foremost, the company is more committed to its dividend than its peers. Its payout, which is currently 3.4%, is nearly triple the payouts of both Devon Energy (NYSE:DVN) and Anadarko Petroleum (NYSE:APC).

Second, that dividend will be fueled in the future by visible organic growth that's focused on profits as opposed to growth at all costs. While Devon Energy and Anadarko both have visible future growth, neither is as focused on growing margins as ConocoPhillips.

Finally, beyond the visible near-term growth, ConocoPhillips is well positioned to deliver growth over the long term as its exploration activities give it options across the world. Overall, it has a much more diversified energy portfolio than either Anadarko Petroleum or Devon Energy, which should keep its dividend not only secure, but growing.

Because pictures speak greater volumes than words, I created the following slideshow to detail why I'm sure ConocoPhillips is a dividend stock investors won't regret. The presentation not only shows the strengths of ConocoPhillips, but why it's stronger than either Anadarko Petroleum or Devon Energy.