3 Top Energy Stocks That Pay High Dividends

NYSE: SNP | China Petroleum & Chemical Corp. ADR News, Ratings, and Charts

SNP – Investors are focusing on high-dividend stocks as a stable source of income amid the near-zero interest rate environment. As such, with the energy sector rebounding rapidly, we think betting on high dividend paying energy stocks China Petroleum & Chemical (SNP), Kinder Morgan (KMI), and Energy Transfer (ET) could be rewarding.

Energy stocks are gaining traction amid the fast-paced economic recovery as oil prices hover near two-year highs owing to a resumption of industrial activities globally and continued supply cuts by the world’s major oil producing countries. Renewed investor interest in this industry is evident in the S&P Oil & Gas Exploration & Production Select Industry Index’s 64.3% gains year-to-date, versus the broader S&P 500 index’s 13.1% returns over this period.

Bullish market trends in the energy industry should allow participants to generate substantial cash flows, which, in turn, should help them maintain their high dividend payouts. Because the Fed has signaled that the interest rates will remain at near zero level until late 2023, we think it could be wise to bet high dividend paying energy stocks for a steady stream of income.

China Petroleum & Chemical Corporation (SNP), Kinder Morgan, Inc. (KMI), and Energy Transfer LP (ET) have solid growth prospects and they pay high dividends. So, we think they are attractive bets now.

China Petroleum & Chemical Corporation (SNP)

Based in Beijing, SNP is a petroleum and petrochemical enterprise group that explores for and  develops oil fields, produces crude oil and natural gas, and manufactures and sells petroleum products. The company operates mainly through five segments: exploration and production, refining, marketing and distribution, chemicals, and corporate and others.

On March 11, SNP announced plans to accelerate hydrogen energy development to build a world-leading clean energy chemical company. Amid growing demand for sustainable energy, SNP’s new venture should be an excellent growth opportunity in the long term.

SNP’s $3.97 annual dividend yields 7.72% at  its current share price. On March 29, the company approved a $1.98 semiannual dividend, payable on July 6. The company’s four-year average yield is 8.46%.

SNP’s operating income for its fiscal first quarter, ending March 31, stood at RMB576.98 billion ($89.04 billion), up 4.1% from the same period last year. Its net profit grew 208.1% from its year-ago value to RMB22.91 billion ($3.53 billion). The company’s EPS increased 190.2% year-over-year to RMB0.15.

Analysts expect SNP’s revenues to rise 62% year-over-year to $121.89 billion in the fiscal period ending September 30, 2021. A $2.99 consensus EPS estimate for the same period indicates a 110.6% improvement year-over-year. SNP has gained 16.9% over the past year and 15.3% year-to-date.

It is no surprise that SNP has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The stock also has a B grade for Growth, Value, and Stability. Among the 95 stocks in the Energy – Oil & Gas industry, SNP is ranked #8.

To see additional SNP Ratings for Momentum, Sentiment, and Quality, click here.

Kinder Morgan, Inc. (KMI)

KMI in Houston, Tex., is one of the largest energy infrastructure companies in North America. It stores and handles petroleum products and chemicals. The company also provides transportation services for  natural gas, gasoline, crude oil, and carbon dioxide. It operates mainly through four segments: natural gas pipelines, products pipelines, terminals, and CO2.

On June 1, KMI acquired Stagecoach Gas Services LLC, which includes four natural gas storage facilities and 3 pipelines. This should enhance the company’s market reach in the Northeastern region.

On March 12, KMI announced the formation of a new Energy Transition Ventures group to analyze and quantify business development opportunities for improved customer outreach.

KMI’s $1.08 annual dividend yields 5.9% at the current  share price. On April 21, the company approved a $0.27 quarterly dividend, which was paid on May 17. KMI’s dividend payouts have increased at a 22.5% CAGR  over the past three years.

KMI’s revenues increased 67.8% year-over-year to $5.21 billion in its  fiscal first quarter, ended March 31. Its operating income grew 4,286% from the year-ago value to $1.89 billion, while its net income improved 589.7% year-over-year to $1.43 billion. The company’s EPS increased 542.9% year-over-year to $0.62.

A $14.14 billion consensus revenue estimate for the current year indicates a 20.8% improvement from the last year. Analysts expect the company’s EPS to come in at $1.20 in the ongoing year, indicating a 36.4% rise year-over-year. Moreover, KMI surpassed the Street’s EPS estimates in three of the trailing four quarters. Shares of KMI have gained 30.7% over the past six months, and 33.8% year-to-date.

KMI has a B rating for the Growth component in our proprietary POWR rating system. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree. It is ranked #23 in the Energy – Oil & Gas industry. Click here to view additional KMI Ratings for Momentum, Quality, Value, Sentiment, and Stability.

Energy Transfer LP (ET)

ET has been a midstream energy leader in the United States for nearly 25 years. The Dallas, Tex.-based company engages in transportation and storage for natural gas, crude oil and refined products. ET’s segments include intra-state transportation and storage, inter-state transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, and investment in USAC.

On June 1, ET priced  a public offering of 900,000 series H preferred stocks at $1,000 per unit. The company raised $900 million in proceeds through the offering, which it plans to use to reduce its debt burden and for funding general partnership expenses.

On April 22, ET announced a quarterly distribution of $0.1525 per common unit for the first quarter, ended March 31, 2021. The company also announced quarterly cash distributions of $0.46, $0.48 and $0.48 per Series C, D and E Preferred Units respectively, paid on May 17.

ET’s $0.61 annual dividend yields 5.54% at its current price. On April 22, the company approved a $0.15 quarterly dividend, which was paid on May 19. ET’s four-year average dividend yield is 12.45%.

ET’s revenues increased 46.2% year-over-year to $17 billion in its fiscal first quarter, ended March 31. Its income from continuing operations grew 6,570.5% from its year-ago value to $4.07 billion. Its  net income came in at $3.64 billion, indicating a 477.7% rise year-over-year. The company’s net income per limited partner unit increased 478.1% year-over-year to $1.21.

The Street expects ET’s revenues to increase 71.1% year-over-year to $66.63 billion in the current year. Its  EPS is expected to increase 891.7% year-over-year to $1.9 in the current year.

ET has gained 66.8% over the past six months to close yesterday’s trading session at $10.94. The stock has gained 78.2% year-to-date.

ET has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. ET has an A  grade  for Growth and Value. It is ranked #14 in the same industry. To see more of ET’s component grades, click here.


SNP shares were unchanged in after-hours trading Wednesday. Year-to-date, SNP has gained 21.59%, versus a 13.77% rise in the benchmark S&P 500 index during the same period.


About the Author: Subhasree Kar


Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
SNPGet RatingGet RatingGet Rating
KMIGet RatingGet RatingGet Rating
ETGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

2022 Stock Market Outlook

The stock market (SPY) has continued on a bullish path in 2021. Will that continue in 2022? And what could happen to awaken the bear market from hibernation? 40 year investment veteran Steve Reitmeister explores this and more in this early edition of his 2022 Stock Market Outlook. Read on for full details below...

:  |  News, Ratings, and Charts

How Recent Bearish Sentiment Will Impact the Stock Market

Last week, the S&P 500 (SPY) fell during a short trading week. Multiple factors were weighing on investor sentiment. First was September's history for being a weaker month for stock performance. In addition, the previous week's August payrolls miss seemed to linger on investors' minds due to concerns that the delta variant of COVID was slowing the rebound in the economy. The real estate sector led declines as long-term interest rates increased. Consumer staples and utility stocks performed the best. In terms of market cap, the small-cap Russell 2000 Index underperformed the market after two strong weeks of outperforming the larger benchmarks. Growth stocks also outperformed Value stocks. I’ll discuss this and more below…

:  |  News, Ratings, and Charts

How to Turn Low Priced Stocks into BIG Winners?

Some investors are into growth stocks...some prefer value stocks while others are into momentum, income, chart patterns, insider trading and more. But one area that most investors agree upon is the great appeal in buying low priced stocks. Like those under $10 given the potential that prices soar and you easily beat the stock market (SPY). Read on to discover our brand new strategy for selecting low priced stocks that has led to a surprising +62.88% average annual return. Get the rest below...

:  |  News, Ratings, and Charts

3 Growth Stocks You Can Buy at a Reasonable Price

Even with growth stocks falling last week, investors are still pouring money into companies with strong growth potential. When you add in a value component, you get the best of both worlds. That's why investors should consider growth at a reasonable price stocks such as Westlake Chemical Corporation (WLK), ManpowerGroup (MAN), AutoNation, Inc. (AN).

:  |  News, Ratings, and Charts

How to Turn Low Priced Stocks into BIG Winners?

Some investors are into growth stocks...some prefer value stocks while others are into momentum, income, chart patterns, insider trading and more. But one area that most investors agree upon is the great appeal in buying low priced stocks. Like those under $10 given the potential that prices soar and you easily beat the stock market (SPY). Read on to discover our brand new strategy for selecting low priced stocks that has led to a surprising +62.88% average annual return. Get the rest below...

Read More Stories

More China Petroleum & Chemical Corp. ADR (SNP) News View All

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