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In a previous study we showed that the average return of high yielding stocks was 13.04% between 1927 and 2009. Dividend stocks beat the overall market by an average of 1.36% per year in that period. We like high yielding dividend stocks and we believe that these stocks will outperform 10-year treasuries over the next decade.

Below we provide 10 high yielding energy stocks with strong earnings. All of these stocks are in the highest quintile in their industry in terms of profit margins. Each of these stocks had a 15% annual EPS growth rate over the past 5 years and a dividend yield of at least 4%.

Data is sourced by Fidelity.

  1. Seadrill (SDRL): Seadrill Limited offshore drills for oil and gas industries around the globe. SDRL has a high dividend yield of 10.32% and has so far lost 10.4% this year. This stock has a whopping 40% profit margin and an EPS growth rate (5 year historical) hovering above 46%.
  2. TRANSMONTAIGNE (TLP): TransMontaigne is a terminaling and transportation company. TLP has a high dividend yield of 7.57% and has so far lost 10.4% this year. This stock has a 23% profit margin and an EPS growth rate (5 year historical) around 31%.
  3. NUSTAR GP (NSH): NuStar is involved in the terminaling, storage, and transportation of petroleum products. NSH has a high dividend yield of 6% and has so far lost 5.39% this year. This stock has a 96% profit margin and an EPS growth rate (5 year historical) around 29%.
  4. WESTERN GAS (WES): Western Gas is involved in midstream energy assets in east and west Texas, the Rocky Mountains, and the mid-continent. WES has a high dividend yield of 4.7% and has so far gained an amazing 17.28 this year. This stock has a 24% profit margin and an EPS growth rate (5 year historical) of 56%.
  5. SPECTRA ENERGY (SEP): Spectra Energy is the an investment arm of Spectra Energy Corp. SEP has a high dividend yield of 6.7%nd has so far lost 11.25% this year. This stock has an 84% profit margin and an EPS growth rate (5 year historical) around 15%.
  6. WILLIAMS (WPZ): Williams focuses on natural gas transportation, natural gas liquid fractionation, and oil transportation in the United States. WPZ has a high dividend yield of 5.5% and has skyrocketed 18.38% this year. This stock has a 19% profit margin and an EPS growth rate (5 year historical) of about 40%.
  7. EL PASO PIPELINE (EPB): El Paso owns and operates natural gas transportation pipelines and storage assets in the United States. EPB has a high dividend yield of 5.2% and has gained 9.51% this year. This stock has a 29% profit margin and an EPS growth rate (5 year historical) of 20%.
  8. ALLIANCE RESOURCE (ARLP): Alliance Resource produces and markets coal for utilities and industrial users in the United States. ARLP has a high dividend yield of 10.32% and has so far gained 12.47% this year. This stock has a 21% profit margin and an EPS growth rate (5 year historical) just below 19%.
  9. EV ENERGY (EVEP): EV Energy engages acquires, develops and produces oil and natural gas properties in the United States. EVEP has a high dividend yield of 4.8% and has so far gained a 67.30% this year. This stock has a 22% profit margin and an EPS growth rate (5 year historical) around 11%.
  10. PETROLEO BRASILEIRO SA PETROBRAS (PBR): Petrobras is involved in oil and natural gas exploration and production, refining, trade, and transportation businesses. PBR has a high dividend yield of 4.5% and has so far lost 26.62%this year. This stock has a 17% profit margin and an EPS growth rate (5 year historical) around 11%. Ken Fisher’s Fisher Asset Management sold 98% of its $396 Million position in PBR during the second quarter (click here to see Ken Fisher’s top stock picks).
Source: 10 High Yielding Energy Stocks With Strong Earnings