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Companies that have a long-term competitive advantage tend to have a higher operating margin than those that don't. Operating profit margin is the ratio of operating profit divided by net sales. Operating profit is the company's earnings from ongoing operations. Operating profit is calculated before deduction of interest payments and income taxes.

Below, we have complied a list of 9 high-dividend energy stocks with strong operating profits. All the stocks in our list have dividend yields higher than 4%, beta ratios of lower than 0.7, and operating margins of higher than 20%. We obtained the market data from Finviz.

Stock

Market Cap
(Billion $)

Dividend Yield

P/E

Beta

Operating Margin

Boardwalk Pipeline Partners (BWP)

5.7

7.8%

27.5

0.2

34.2%

Dominion Resources (D)

30.0

4.0%

21.1

0.48

20.4%

El Paso Pipeline Partners (EPB)

6.9

6.2%

16.3

0.21

54.4%

Kinder Morgan Energy Partners (KMP)

27.2

6.0%

150.9

0.36

22.7%

Linn Energy (LINE)

7.3

7.9%

7.3

0.7

55.7%

Magellan Midstream Partners (MMP)

7.9

4.8%

18.9

0.33

29.4%

Pinnacle West Capital (PNW)

5.3

4.3%

15.8

0.53

23.6%

PPL Corporation (PPL)

15.9

5.3%

9.7

0.39

24.0%

Southern Company (SO)

39.4

4.3%

18.3

0.28

24.0%

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Boardwalk Pipeline Partners owns and operates integrated natural gas pipelines and storage systems in the United States. Boardwalk recently traded at $27.12 and has a 7.8% dividend yield. Boardwalk gained 4.9% during the past 12 months. The stock has a market cap of $5.7 billion, P/E ratio of 27.5 and Total Debt/Equity ratio of 1. Boardwalk also had an EPS growth rate of -12.4% during the last five years.

Dominion Resources engages in producing and transporting energy in the United States. Dominion recently traded at $52 and has a 4% dividend yield. Dominion gained 13.1% during the past 12 months. The stock has a market cap of $30 billion, P/E ratio of 21.1 and Total Debt/Equity ratio of 1.67. Dominion also had an EPS growth rate of 2.4% during the last five years.

El Paso Pipeline Partners provides the interstate storage and transportation of natural gas in the United States. El Paso recently traded at $32.79 and has a 6.2% dividend yield. El Paso gained 3.6% during the past 12 months. The stock has a market cap of $6.9 billion, P/E ratio of 16.3 and Total Debt/Equity ratio of 2.02. El Paso also had an EPS growth rate of 12.3% during the last five years.

Kinder Morgan Energy Partners is a pipeline transportation and energy storage company in North America. Kinder Morgan recently traded at $79.77 and has a 6% dividend yield. Kinder Morgan gained 19% during the past 12 months. The stock has a market cap of $27.2 billion, P/E ratio of 150.9 and Total Debt/Equity ratio of 1.82. Kinder Morgan also had an EPS growth rate of -34.6% during the last five years.

Linn Energy is an independent oil and natural gas company. Linn Energy recently traded at $36.42 and has a 7.9% dividend yield. Linn Energy gained 5.4% during the past 12 months. The stock has a market cap of $7.3 billion, P/E ratio of 7.3 and Total Debt/Equity ratio of 1.22. Linn Energy also had an EPS growth rate of 1.8% during the last five years.

Magellan Midstream Partners provides transportation, storage, and distribution of petroleum products in the United States. Magellan recently traded at $69.27 and has a 4.8% dividend yield. Magellan gained 29.3% during the past 12 months. The stock has a market cap of $7.9 billion, P/E ratio of 18.9 and Total Debt/Equity ratio of 1.47. Magellan also had an EPS growth rate of 10.1% during the last five years.

Pinnacle West Capital Corporation provides retail and wholesale electric services in the United States. Pinnacle recently traded at $48.12 and has a 4.3% dividend yield. Pinnacle gained 11.2% during the past 12 months. The stock has a market cap of $5.3 billion, P/E ratio of 15.8 and Total Debt/Equity ratio of 0.98. Pinnacle also had an EPS growth rate of -1.1% during the last five years.

PPL Corporation is an energy and utility holding company operating in the United States and the United Kingdom. PPL recently traded at $27.47 and has a 5.3% dividend yield. PPL gained 2.1% during the past 12 months. The stock has a market cap of $15.9 billion, P/E ratio of 9.7 and Total Debt/Equity ratio of 1.66. PPL also had an EPS growth rate of 4.5% during the last five years.

The Southern Company is an electric utility company. Southern Company recently traded at $45.27 and has a 4.3% dividend yield. Southern Company gained 16.8% during the past 12 months. The stock has a market cap of $39.4 billion, P/E ratio of 18.3 and Total Debt/Equity ratio of 1.17. Southern Company also had an EPS growth rate of 3.9% during the last five years.

Source: 9 High Dividend Energy Stocks With Excellent Operating Profits