Friday was another disastrous day for the markets. Financials lost 3.5%, followed by Conglomerates (-3.4%), and Industrials (-3.4%). The relatively defensive Healthcare and Utility stocks lost -1.3% on average. Last week sent mixed signals to the market. Even after Friday’s losses, Financials made a small rebound, gaining 1.6%.
When we look at the one month performance, we observe that Basic Materials lost 15.3%, followed by Financials which lost 11.3%. In this volatile environment safety should be a number one priority. Low P/E dividend stocks can provide a soft cushion against market downturns. Here is a list of 8 energy stocks with nifty yields and priced with low P/E ratios. All of the listed stocks offer a minimum yield of 5%, and have a maximum P/E ratio of 15. The minimum market cap is $1 billion. (Data from finviz/morningstar, and is current as of September 30 close. You can download O-Metrix calculator, here.):
Alliance Holdings GP (AHGP) is a producer and marketer of coal and coal-related products. The stock has a market cap of $2.63 billion, and is trading with a trailing P/E ratio of 13.70, and an even lower forward P/E ratio of 11.52. Analysts estimate 14% annualized EPS growth for the next 5 years. With a nifty yield of 5.30%, AHGP has an O-Metrix score of 7.92. Here is Alliance Holdings' dividend history:
Date | Amount |
08/10/11 | $0.5825 |
05/11/11 | $0.5550 |
02/09/11 | $0.5275 |
11/09/10 | $0.5000 |
Alliance Resource Partners (ARLP) is a partnership of Alliance Holdings. The company is also involved in the production and marketing of coal-related products. The stock has a market cap of $2.41 billion, and is trading with a trailing P/E ratio of 8.94, and an even lower forward P/E ratio of 7.79. Analysts estimate 10.6% annualized EPS growth for the next 5 years. With a nifty yield of 5.63%, ARLP has an O-Metrix score of 9.52. Here is Alliance Resource Partners’ dividend history:
Date | Amount |
08/03/11 | $0.9225 |
05/04/11 | $0.8900 |
02/03/11 | $0.8600 |
11/03/10 | $0.8300 |
BP Prudhoe Bay Royalty Trust (BPT) has a royalty interest in the Prudhoe Bay oil field. The stock has a market cap of $2.25 billion, and is trading with a trailing P/E ratio of 11.81. It is a low Beta stock with a Beta value of 0.67. While the stock lost 11.43% since January, it returned 9% in a year. With a nifty yield of 8.98%, BP Prudhoe Bay Royalty Trust is a nice stock for income investors. Here is BPT’s dividend history:
Date | Amount |
07/14/11 | $2.6424 |
04/13/11 | $2.3933 |
01/12/11 | $2.4080 |
10/13/10 | $2.020 |
Natural Resource Partners (NRP) is a coal producer and marketer with several operations in Appalachia, Northern Powder and Illinois Basins. The stock has a market cap of $2.69 billion and is trading with a trailing P/E ratio of 14.09, and an even lower forward P/E ratio of 13.21. Analysts estimate 4% annualized EPS growth for the next 5 years. With a nifty yield of 8.52%, NRP has an O-Metrix score of 4.63. Here is Natural Resource Partners’ dividend history:
Date | Amount |
08/03/11 | $0.54 |
05/03/11 | $0.54 |
02/02/11 | $0.54 |
11/03/10 | $0.54 |
Pengrowth Energy Corporation (PGH) is involved in production of oil and natural gas products in the Western Canadian Sedimentary Basin. The stock has a market cap of $2.92 billion, and is trading with a trailing P/E ratio of 12.83, and a forward P/E ratio of 13.83. Analysts estimate 7.2% annualized EPS growth for the next 5 years. With a nifty yield of 9.42%, Penn West has an O-Metrix score of 6.24. Here is the dividend history of Penngrowth Energy Corporation:
Date | Amount |
09/28/11 | $0.07 |
08/29/11 | $0.07 |
07/27/11 | $0.07 |
06/28/11 | $0.07 |
Penn West Petroleum (PWE) is involved in production of oil and natural gas products in North America. The stock has a market cap of $6.82 billion, and is trading with a trailing P/E ratio of 13.71, and a forward P/E ratio of 10.38. With a nifty yield of 7.29%, Penn West is trading at only 0.76 times its book value. Here is the dividend history of Penn West:
Date | Amount |
09/28/11 | 0.27 |
06/28/11 | 0.27 |
03/29/11 | 0.27 |
12/29/10 | 0.09 |
SeaDrill Limited (SDRL) is an offshore drilling contractor, headquartered in Bermuda with operations worldwide. The stock has a market cap of $12.85 billion, and is trading with a low trailing P/E ratio of 5.86, and a forward P/E ratio of 8.37. Analysts estimate 10.2% annualized EPS growth for the next 5 years. With a nifty yield of 10.90%, SeaDrill has an O-Metrix score of 15. Here is the dividend history of SeaDrill Limited:
Date | Amount |
09/06/11 | $0.75 |
06/06/11 | $0.75 |
03/02/11 | $0.486 |
03/02/11 | $0.144 |
Sunoco Logistics Partners (SXL) is an oil and gas pipeline operator headquartered in Pennsylvania. The stock has a market cap of $2.93 billion, and is trading with a trailing P/E ratio of 8.46, and a forward P/E ratio of 14.02. Analysts estimate 6.33% annualized EPS growth for the next 5 years. With a yield of 5.49%, Sunoco Logistics has an O-Metrix score of 5.35. Here is the dividend history of Sunoco Logistics:
Date | Amount |
08/04/11 | $1.215 |
05/05/11 | $1.195 |
02/04/11 | $1.180 |
11/04/10 | $1.170 |
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
