The best energy stocks have a tradition of consistently raising their dividends and distributions. Even in a weakened economy crude oil prices haven been rising and the outlook remains strong due to increased demand and inflationary concerns. We are expecting to see slow but steady global growth over the next few years which should continue to fuel demand for energy services and profits for energy companies.
We've identified six energy stocks that stand to benefit from the increasing demand for energy services. Each of these energy dividend stocks has a proven track record of raising dividends for 10 consecutive years or more. Each stock also has a dividend yield of 3% or more.
Chevron Corp - CVX
Chevron Corporation manages its subsidiaries that engage in chemical, petroleum, and mining operations. Their subsidiaries also operate in the power generation and energy services. Chevron explores for a produces both crude oil and natural gas.
Chevron has a dividend yield of 3.2% and a 3 year dividend growth rate of 6.9%. They have a payout ratio of just 22% and have raised their dividend for 19 years in a row.
ConocoPhillips - COP
ConocoPhillips is an international energy company that operates in six segments. Through its multiple business units COP explores for and transports crude oil and natural gas. COP processes, transports and markets natural gas and petroleum products. Its operations exist in the US, Europe and Asia.
ConocoPhillips has a dividend yield of 3.9% which is above its five year average of 3.4%. Its 3 year dividend growth rate is 12.3% and it has raised its dividend for each of the last 10 years.
Buckeye Partners – BPL
Buckeye Partners is an MLP that owns and operates refined petroleum pipeline systems in the United States. Its pipelines cover approximately 5,400 miles. It also owns a natural gas storage facility in California that operates as a wholesale distributor of refined petroleum products.
Buckeye Partners has a dividend yield of 6.3% and has raised their dividend by 5.5% over the last 3 years. They have raised their distribution every year for the last 15 years.
Kinder Morgan Energy Partners LP – KMP
Kinder Morgan Energy Partners (LP) is an energy storage and transportation company that operates in North America. Through its pipelines they transport natural gas, crude oil and refined petroleum products.
Kinder Morgan has a dividend yield of 6% and a 3 year dividend growth rate of 5.6%. KMP has raised their dividend for the last 14 years.
Enterprise Energy Partners LP - EPD
Enterprise Products Partners is a limited partnership that operates in six segments in North America. It provides energy services to consumers of natural gas, crude oil and refined products.
EPD has a dividend yield of 5.3% and a 3 year dividend growth rate of 6%. They have raised their dividend for 12 consecutive years.
Plains All American Pipeline, LP - PAA
Plains All American Pipeline is a limited partnership. Plains transports, stores and markets crude oil, natural gas petroleum products and other refined products.
PAA has a dividend yield of 6.1% and a 3 year dividend growth rate of 6.4%. They have raised their dividend for 11 consecutive years.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.