Seeking Alpha
Deep value, event-driven, dividend investing, REITs
Profile| Send Message|
( followers)  

When I begin to screen stocks I look for two things, high yields over 8% and low P/E ratios preferably under 20 (however I'll make a few exceptions from time to time). That being said, these five energy stocks should certainly enhance any portfolio, especially when it comes to their dividends.

Whiting USA Trust I (NYSE:WHX) - Founded in 2007 and based in Houston, Texas, WHX currently trades at a P/E ratio of 5.76 and yields 16.7% ($2.39) making the stock very inexpensive by most standards. Analysts expect WHX to earn $0.76/share on revenue of $19.4 million dollars for the second quarter and $3.00/share on revenue of $77.5 million dollars for the year. The company should report earnings in line or slightly above estimates, though I believe investors will see a slight drop when compared with the same year-ago period. WHX could report EPS of $0.77/share even though that would be about $0.05/share below last year's second-quarter EPS $0.82/share.

ECA Marcellus Trust I (NYSE:ECT) - Founded in 2010 and based in Austin, Texas, ECT currently trades at a P/E ratio of 7.14 and yields 13.5% ($2.30) making the stock very inexpensive by most standards. Analysts expect ECT to earn $0.52/share on revenue of $9.5 million dollars for the second quarter and $2.11/share on revenue of $40.37 million dollars for the year. Shareholders shouldn't be discouraged that ECT has missed analysts' estimates the last four quarters because the company has demonstrated an increase in distribution when compared with the same year-ago periods by an average of $0.178/share.

Vanguard Natural Resources, LLC (NASDAQ:VNR) - Founded in 2006 and based in Houston, Texas, VNR currently trades at a P/E ratio of 10.47 and yields 9.4% ($2.37) making the stock very inexpensive by most standards. Analysts expect VNR to earn $0.46/share on revenue of $81.49 million dollars for the second quarter and $1.87/share on revenue of $342.02 million dollars for the year. Since the company began paying a dividend in February in 2008, it has increased the distribution during 10 of the last 18 quarters. VNR should come right in line or slightly below analysts' expectations for the quarter, even though it'll be reporting $0.07/share lower when compared with the same period from a year ago.

NuStar Energy L.P. (NYSE:NS) - Founded in 1999 and based in San Antonio, Texas, NS currently trades at a P/E ratio of 19.86 and yields 8.3% ($4.38) making the stock very inexpensive by most standards. Analysts expect NS to earn $0.94/share on revenue of $1.31 billion dollars for the second quarter and $2.93/share on revenue of $6.29 billion dollars for the year. The last two quarters haven't been the greatest for NS however I believe we could see a turnaround during the second quarter. Even though NS reported EPS of $1.13/share during the June 2011 quarter, the company should surpass second-quarter estimates by $0.02 - $0.03/share.

Martin Midstream Partners LP (NASDAQ:MMLP) - Founded in 2002 and based in Kilgore, Texas, MMLP currently trades at a P/E ratio of 31.47 and yields 9.4% ($3.05) making the stock affordable by most standards. Analysts expect MMLP to earn $0.46/share on revenue of $325.08 million dollars for the second quarter and $1.63/share on revenue of $1.33 billion dollars for the year. Even though the stock performance hasn't been the greatest over the last year (-4.5%), the company's yield still allows for investors to realize a positive ROI of +5.1%. I believe MMLP could surpass analysts' estimates by $0.02/share - $0.04/share on revenue of $330.1 million dollars.

Source: 5 Inexpensive Energy Stocks Yielding Over 8%