Income Stock of the Week: GeoPark (GPRK)

NYSE: GPRK | GeoPark Ltd. News, Ratings, and Charts

GPRK – Income stocks are great, income stocks that trade like value stocks are even better. Ensuring a safe dividend should be job number one for an income stock, and GeoPark Limited (GPRK) could be the poster stock for producing safe dividend growth. Oil prices have a multitude of price supports at this point, and GeoPark, which focuses on energy production in South America, should be a major beneficiary of global prices.

While this is my income pick of the week, and GeoPark Limited (GPRK - Get Rating) pays a nice dividend, yielding over 5%, it’s extremely important when looking at income stocks to be as diligent as possible to ensure the dividend is safe. GeoPark is an income stock in value clothing. 

GeoPark is a South American based oil exploration and production company, with operations in Brazil, Chile, Ecuador and Columbia. The company has a 20 year record of finding and extracting oil, and has grown capacity at a compound annual growth rate (CAGR) of 12% overall, and 18% in Columbia, where it manages one of the largest oil deposits in the country. 

GeoPark’s value begins in its drilling operations where GPRK has a 75% drilling success rate over the past 16 years. One of these success stories is Llanos 34 in Columbia, which represents the largest oil find in the country in the past 20 years. The drilling site was purchased for $30 million in 2012, has produced almost $2 billion since drilling began, and is estimated to contain another $2 billion of production today.

I’ve spoken before about the price support that is in place for oil globally, and the recent outbreak of violence in the Middle East will only serve to bolster recent price increases. Oil is a global market, and investors often focus on oil companies only in the U.S., but South American companies like GeoPark will benefit as well from global prices. 

Let’s talk a moment about the “value” side of GeoPark. The company trades at a lowly PE of only 3.2, and at a super low 3x earnings. Its price to sales ratio is .88, and yet its operating margins are just under 50%. The company has $86 million of cash and cash equivalents on hand, and a credit facility of $80 million which has yet to be touched. 

Not surprisingly GPRK has an outstanding 94.64% rating on the Value component of our POWR Ratings. GeoPark also scores highly in the areas of Quality and Sentiment where it ranks above 80% of the companies we track in both categories. 

I like the conservative management of this South American driller, and think its income potential is in the sweet spot of the current oil market. 

What To Do Next?

Above I featured just 1 of my favorite income stocks. My guess is that you’d like to discover even more attractive income stocks. 

All you need to do is check out my POWR Income Insider portfolio. 

This is backed by a proven quant strategy that has produced an average annual return of +24.3%. It even generated surprising gains in 2022 when the bear market came to town. 

If you would like to learn about this consistently successful income stock approach…then just click the link below:

Discover POWR Income Insider now > 

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


GPRK shares were trading at $10.40 per share on Tuesday afternoon, up $0.20 (+1.96%). Year-to-date, GPRK has declined -29.98%, versus a 14.94% rise in the benchmark S&P 500 index during the same period.


About the Author: Jay Soloff


Jay is a former professional market maker who cut his teeth trading on the floor of the CBOE. With more than 20 years of experience trading and investing, his focus is on making professional strategies accessible to everyone, which is exactly what does in his highly profitable POWR Income and POWR Stocks Under $10 investment advisory services. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
GPRKGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Trump or the Fed More Important to Stock Investors?

The S&P 500 (SPY) is flirting with new highs once again. But it is not very clear what is driving these stock price gains. That is why Steve Reitmeister shares his latest views including a market outlook, trading plan and top picks to stay on the right side of the action.

3 Dividend Growth Stocks for Long-Term Wealth

Dividend-growth stocks offer steady income and long-term value. With the Fed holding rates and inflation expected to ease, now is an opportune time to invest in companies like AbbVie (ABBV), Energy Transfer (ET), and Cheniere Energy (CQP) that consistently raise payouts. Read more…

3 Sub-$10 Tech Stocks with Multibagger Potential

The tech market is booming, fueled by AI, cloud computing, and digital transformation. With next-gen software, automation, and 5G driving growth, investors have massive opportunities. For those seeking high potential without the hefty price tag, sub-$10 stocks like Yext, Inc. (YEXT), Eventbrite (EB), and inTEST Corp. (INTT) could be your next big win. Read more...

Viavi Solutions vs. Lumentum Holdings: Which Optical Tech Stock Shines Brighter?

The optical tech industry is well-positioned for growth due to technological advancements and increasing demand for seamless connectivity. So, let’s analyze optical tech stocks, Viavi Solutions (VIAV) and Lumentum Holdings (LITE), to determine which optical tech stock shines brighter. Read on...

Investors in “Wait and See” Mode

Have you noticed that the S&P 500 (SPY) has been trading in a tight trading range of only 6,000 to 6,100 the past few weeks? Steve Reitmeister shares why this is happening along with a game plan for being on the right side of the market action. Read on for the full story...

Read More Stories

More GeoPark Ltd. (GPRK) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All GPRK News