3 Buy-Rated Energy Stocks With 8%-Plus Dividends  

NYSE: SUN | Sunoco L.P. News, Ratings, and Charts

SUN – There is always a risk with high dividend stocks, however, occasionally, they present an appetizing opportunity for companies in improving sectors. If you think energy has more upside, then consider these 8%-plus payers.

It is not often that you find stocks with dividends above 5%. It is even rarer for a stock to have a dividend of 8% or higher. However, if you sort through the entirety of publicly traded stocks, you will eventually find these dividend superstars.

Instead of spending your limited time hunting for dividends stocks with the highest payouts, let us do the work for you. As long as you are comfortable investing in the energy sector, you will be treated to handsome dividends every single year.

Below, we provide a look at three of the best energy stocks with high dividend payments: Sunoco (SUN), Delek Logistics Partners (DKL) and Oasis Midstream Partners (OMP).

Sunoco (SUN)

SUN is a refiner of petroleum, a chemicals manufacturer and a logistics provider. However, the majority of SUN’s business is centered on bringing petroleum to the masses. SUN has an overall POWR Rating of B, meaning it is a Buy. The stock has B grades in the Value and Growth Components. If you are curious as to how SUN fares in terms of Momentum, Stability, Sentiment and the other components of the POWR Ratings, you can obtain that information by clicking here.

Of the 42 publicly traded companies in the MLPs – Oil & Gas sector, SUN is ranked fourth. Investors who would like to find out more about this sector can do so by clicking here. The analysts have established a high target price of $35 for SUN. The stock is currently trading at $32. It is particularly interesting to note SUN’s upside potential is greater than nearly one-third of all US stocks.

SUN is also attractive as it has a fairly low forward P/E ratio of 8.03. This means SUN might be undervalued around $32 per share despite the fact that it is less than a dollar away form its 52-week high of $33. SUN’s decision to sell most of its gas stations and pay down debt appears to be working. Add in the fact that SUN has a dividend of 10.65% and investors have even more reason to be intrigued by the stock. The company’s repayment of debt has solidified its cash distribution, ensuring the dividend can be paid.

Delek Logistics Partners (DKL)

DKL owns, operates and builds sites for crude oil production. DKL operates pipelines that transport crude oil and even provides marketing services to boot, helping sell refined products for maximum profit.

DKL also has a B grade in the POWR Ratings, meaning it is a Buy. DKL has B grades in the Quality and Growth components of the POWR Ratings. If you are curious as to how DKL fares in the remainder of the POWR Ratings components, you can find out by clicking here. Of the 42 stocks in the MLPs – Oil & Gas industry, DKL is ranked 6th. Investors who would like to learn more about this industry can do so by clicking here.

DKL has an incredibly low forward P/E ratio of 6.39, indicating it is likely underpriced at $42.47 per share. This low forward P/E ratio is all the more interesting considering DKL is within a dollar of its 52-week high of $43.15. Above all, investors gravitate toward DKL for its elite dividend payment of 8.81%. DKL’s EPS is likely to grow by an impressive 40.3% this year alone, beating out the industry average of 13.6% EPS growth.

Oasis Midstream Partners (OMP)

OMP owns and operates a well-diversified portfolio of midstream assets, most of which are in North America. OMP’s midstream services range from the gathering of gas to processing gas, crude oil gathering and disposal services. OMP’s operations are in the Wild Basin.

OMP pays an impressive dividend of 13.80%. When it comes to the POWR Ratings, few stocks in the oil and gas industry grade out better than OMP. The stock has B grades in the Quality, Value and Sentiment components. Investors who would like to find out how OMP fares in the rest of the POWR Ratings components can find out by clicking here.

Of the 42 publicly traded companies in the MLPs – Oil & Gas industry, OMP is ranked 5th. You can learn more about this industry by clicking here. OMP has an absurdly low forward P/E ratio of 5.80 even though it is within a dollar of its 52-week high of $17.24. As long as OMP’s dividend holds steady, it is worthy of a position in your portfolio.

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SUN shares were trading at $31.63 per share on Wednesday afternoon, up $0.28 (+0.89%). Year-to-date, SUN has gained 12.72%, versus a 4.44% rise in the benchmark S&P 500 index during the same period.


About the Author: Patrick Ryan


Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...


More Resources for the Stocks in this Article

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OMPGet RatingGet RatingGet Rating
DKLGet RatingGet RatingGet Rating

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