Oil & gas pipeline operators with highest dividend yields originally published at "long-term-investments.blogspot.com". Stocks from the basic material sector could complement your portfolio and hedge it against strong commodity price increases. One industry from the basic material sector with the highest yielding stocks is the oil and gas pipeline industry.
39 companies are linked to the industry of which 37 pay dividends. Combined they have a total market capitalization of USD 800 billion. Nearly 60 percent of the industry players have a yield over 5 percent and some have a really great dividend history. Thanks to the share gas boom it's now possible that more pipeline infrastructure is needed. The average industry yield amounts to 4.72% and the P/E ratio is 33.40.
You should have seen some interesting pipeline companies on my blog in the past. Normally I am no fan of real estate companies because of the huge amounts of money they need for growing. But pipeline operators look different. They pay huge dividends and have the ability to grow dividends year over year. Their business model works but I don't know how long. Pipeline operators are better than real estate stocks but it could be possible that the time brings some changes, especially when the energy demand and supply is changing.
Oil and gas pipeline stocks are real asset companies and they have a huge leverage on their balance sheet. The average industry long-term debt to equity ratio is over 123 percent but as long as revenue and cash flow streams are stable, this figure is still healthy.
Linked is a list of all higher capitalized oil and gas pipeline operators (over USD 2 billion market cap). Seventeen stocks fulfilled these criteria of which eight have a current buy or better recommendation.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 32.24 and forward P/E ratio is 22.35. The dividend yield has a value of 6.75 percent. Price to book ratio is 2.46 and price to sales ratio 4.39. The operating margin amounts to 18.45 percent and the beta ratio is 0.70. Stocks from the list have an average debt to equity ratio of 1.17.
Related stock ticker symbols:
NS, RGP, BWP, EEP, ETP, APL, BPL, CQP, NRGM, TCP, NGLS, DPM, CPNO, KMP, EPB, PBA, OKS