Seeking Alpha
Newsletter provider, fund holdings, insider ownership
Profile| Send Message|
( followers)

Recently, we compiled a list of high dividend yielding Consumer stocks with consistent dividend growth over the past 5 years. We think many defensive investors look for long records of dividend payments in high dividend yielding stocks. Hence, the stocks that are able to increase dividends can be appealing to defensive investors that demand consistency and some inflation protection.

Some sectors, like Energy sector, contain many high dividend yielding stocks that achieved consistency in dividend payments. We compiled a list of US Energy stocks with high dividend yields and consistent dividend growth. The market data are sourced from Fidelity. All companies in this list increased their dividend payments every year since 2005. These stocks have market capitalization above $1 billion and 12-month dividend yield of at least 5%.

Dividend Yield

5-Year Average Div. Growth

52-Week Return

Inergy LP

NRGY

8.08%

5.48%

1.16%

Teekay LNG Partners

TGP

7.29%

10.06%

25.63%

NuStar Energy LP

NS

6.76%

3.97%

20.55%

TC Pipelines LP

TCLP

6.62%

5.46%

24.59%

Buckeye Partners LP

BPL

6.51%

5.92%

15.91%

Holly Energy Partners

HEP

6.28%

5.96%

44.51%

Kinder Morgan Energy Partners

KMP

6.26%

7.07%

19.38%

Plains All American Pipeline

PAA

6.25%

6.51%

12.99%

DCP Midstream Partners

DPM

6.22%

12.30%

40.97%

Enterprise Products Partners

EPD

5.77%

6.07%

27.38%

Williams Partners L.P.

WPZ

5.68%

13.56%

26.09%

Sunoco Logistics Partners

SXL

5.68%

9.76%

29.94%

Genesis Energy LP

GEL

5.68%

17.75%

55.67%

Oneok Partners LP

OKS

5.49%

5.50%

42.20%

Energy Transfer Equity

ETE

5.26%

57.49%

41.07%

Magellan Midstream Partners

MMP

5.25%

6.39%

37.96%

Alliance Resource Partners

ARLP

5.13%

14.11%

55.69%

AVERAGE

11.37%

30.69%

Since 2005, these 17 US Energy stocks have increased their cash dividends every year and their 5 year average dividend growth is 11.37% on average. In the last 52-week period, the average return of these 17 stocks was 30.69%. No stock in this group had a loss in the past 12 months, whereas all stocks except one – NRGY – provided double digit returns in the same period.

The top 10 highest dividend yielding Energy stocks with consistent dividend growth are as follows:

  1. Inergy LP (NRGY): Inergy LP is a US energy company distributing propane in the United States. NRGY has a high dividend yield of 8.08% and returned 1.16% during the past 12 months. In the past 5 years, NRGY increased its dividend payments by 5.48% annually. The stock has a market cap of $4.16B. Jean-Marie Eveillard First Eagle holds the largest NRGY position among h 300+ funds we are tracking.
  2. Teekay LNG Partners (NYSE:TGP): Teekay LNG Partners is a leading provider of petroleum shipment services worldwide. TGP has a high dividend yield of 7.29% and returned 25.63% during the past 12 months. In the past 5 years, TGP increased its dividend payments by 10.06% annually. The stock has a market cap of $2.03B and P/E Ratio of 23.76.
  3. NuStar Energy LP (NYSE:NS): NuStar Energy LP is a US company operating petroleum terminals and providing petroleum transportation services. NS has a 6.76% dividend yield and returned 20.55% during the past 12 months. In the past 5 years, NS increased its dividend payments by 3.97% annually. The stock has a market cap of $4.11B and P/E Ratio of 19.38. Jean-Marie Eveillard First Eagle and Jim Simons’ Renaissance Technologies are among NS investors.
  4. TC Pipelines LP (TCLP): TC Pipelines LP is a US company providing natural gas transportation in the United States. TCLP has a 6.62% dividend yield and returned 24.59% during the past 12 months. In the past 5 years, TCLP increased its dividend payments by 5.46% annually. The stock has a market cap of $2.38B and P/E Ratio of 15.05. Jim Simons and Cliff Asness have TCLP positions in their portfolios.
  5. Buckeye Partners LP (NYSE:BPL): Buckeye Partners LP is an energy company distributing petroleum in the United States. BPL has a 6.51% dividend yield and returned 15.91% during the past 12 months. In the past 5 years, BPL increased its dividend payments by 5.92% annually. The stock has a market cap of $5.70B. John Phelan’s MSD Capital holds $30 Million of BPL. Frank Brosen’s Taconic Capital and Michael Messner’s Seminole Capital are also among BPL investors.
  6. Holly Energy Partners (NYSE:HEP): Holly Energy Partners is a US pipeline company distributing petroleum and crude oil products in the United States. HEP has a 6.28% dividend yield and returned 44.51% during the past 12 months. In the past 5 years, HEP increased its dividend payments by 5.96% annually. The stock has a market cap of $1.20B and P/E Ratio of 23.88. John Overdeck’s Two Signal Advisors and Cliff Asness’ AQR Capital have HEP in their portfolios.
  7. Kinder Morgan Energy Partners (NYSE:KMP): Kinder Morgan Energy Partners is a US company operating energy products storage and terminal facilities. KMP has a 6.26% dividend yield and returned 19.38% during the past 12 months. In the past 5 years, KMP increased its dividend payments by 7.07% annually. The stock has a market cap of $23.23B and P/E Ratio of 56.02. Michael Messner’s Seminole Capital has more than $20M in KMP.
  8. Plains All American Pipeline (NYSE:PAA): Plains All American Pipeline Partners is a pipeline company providing energy products transportation, storage and marketing services in the United States and Canada. PAA has a 6.25% dividend yield and returned 12.99% during the past 12 months. In the past 5 years, PAA increased its dividend payments by 6.51% annually. The stock has a market cap of $9.26B and P/E Ratio of 24.84. Dmitry Balyasny and Chuck Royce hold the two largest PAA positions among the 300+ funds we are tracking.
  9. DCP Midstream Partners (NYSE:DPM): DCP Midstream Partners is a US company producing and selling natural gas products in the United States. DPM has a 6.22% dividend yield and returned 40.97% during the past 12 months. In the past 5 years, DPM increased its dividend payments by 12.30% annually. The stock has a market cap of $1.77B. Jean-Marie Eveillard First Eagle has more than $20M in DPM.
  10. Enterprise Products Partners (NYSE:EPD): Enterprise Products Partners is a pipeline company storing and distributing natural gas and crude oil in the United States, Canada and the Gulf of Mexico. EPD has a 5.77% dividend yield and returned 27.38% during the past 12 months. In the past 5 years, EPD increased its dividend payments by 6.07% annually. The stock has a market cap of $35.32B. John Osterweis’ Osterweis Capital holds nearly $70M of EPD. Chuck Royce is also among EPD investors.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.