When looking for income plays in the energy sector finding reliable dividend payers on the cheap is rare. The energy sector provides such reliable dividend bounty that you generally have to wait for a global crisis to get these cash cows on sale.
Well, seeing as we have a global crisis this would be a great time to take a trip around the globe shopping for high yielding energy producers. Let's start in Spain. Vamos a la playa! (All Sources: Google Finance)
1) Repsol (PINK:OTC:REPYY)
REPYY. Sounds like a dog's name. "Here Repyy!"
Repyy is one flea-ridden oil & gas dog. Argentina basically stole the company from shareholders. That's a negative. The positive is that the Rep-Dog is most definitely on sale and yields a whopping 9%. Caveat emptor shopping partner.
2) Eni S.p.A. (NYSE:E)
Let's stay at ground euro-zero and next go to fashionable Italy for Eni, a company so en vogue its ticker symbol is E. Just E like Cher or Madonna. Not only that but trendy Eni has an S. p. A. after its name and ONLY THE P CAN BE LOWERCASE.
I do not get fashion. But I digress.
Oil and gas play Eni has been "range-bound" for quite some time, never getting near back to 2008 highs in the 80s. It yields a high-cheek-boned 6.5%. If you are looking to buy when there is blood in the streets this could be your huckleberry.
3) Total (NYSE:TOT)
Next, I hope you like cheese and beautiful-sounding insults because we are headed to France. Oil & gas company Total has been on sale for quite a while and is yielding a champagne-popping 6.8%. Looks like we have another good candidate.
4) BP (NYSE:BP)
England is not on the euro and hence keeps the euro-mess at arm's length a bit. BP thought of this and tried to give you a sale with a catastrophe in the Gulf of Mexico. BP yields 4.8% and at any other time could be a bargain here but we are looking for blood in the streets sales and this does not qualify. They serve us tea and couldn't be more pleasant.
5) Statoil (NYSE:STO)
Norway is NOT where we would expect to find euro-induced bargains and we basically are right. Like BP, this stock is cheap but not panic-cheap. It yields 4.5% and we guess it employs 600,000 Johans.
6) Lukoil (PINK:OTC:LUKOY)
Use the force Lukoil. We are in Moscow and glad it's June. Lukoil yields 6.9% and seems to fit the bill. Russia-risk is different than euro-risk but the results are the same.
7) CNOOC (NYSE:CEO)
Next it is off to the Far East, Hong Kong. CNOOC does not have euro troubles and yields a relatively paltry 3.4%. Not a blood in the streets name.
High yielding major integrated oil and gas names don't generally go on sale without a major crisis. It takes times like this - when there is blood in the street and real risk at hand - to get a sale and if you can tolerate the risk there are some real opportunities for high income in dividend-paying global energy names.