TWO Energy Stocks RAISING Dividends BUT... does the PRIOR history = HIGH RISK?! | Dividend Investing
Published at : November 11, 2022
Here are two dividend stocks that YOU the viewer wanted to check out! As the stock market goes up and down, we look at every dividend stock that we can. We dove into stocks in the Oil & Gas industry to see if these are great stocks to buy now! Also, to see if the dividend is enough for the risk taken.
Why do dividends matter? Dividends are one of the best passive income sources. Dividend investing increases your passive income, as you reach financial freedom!
Reference items:
►SoFi - Earn $25 FREE Stock when you Invest $100!: https://bit.ly/3BHfJfs
►SoFi - Open a Savings/Checking Account, earn up to $275!: https://bit.ly/3WixHy0
►Fundrise - Dividend Diplomats Use this for Real Estate Investing: https://fundrise.sjv.io/9aJWW
►GoogleFi - Save ~$30 month for switching to Google's Phone Plan: https://g.co/fi/r/1292VY
►Dividend Diplomats Stock Portfolios: https://bit.ly/3fc7G2B
►Dividend Diplomats Blog: https://www.dividenddiplomats.com/
When we evaluate dividend growth stocks, we focus on three dividend diplomat stock screening metrics, to determine if the stock is undervalued:
1.) Price to Earnings Ratio Less than the S&P 500 and the competition
2.) Dividend Payout Ratio Less than 60%. This shows the stock can continue to pay the dividend and increase that passive income stream
3.) Dividend Growth Rate: We want to see a history of the dividend increasing, as well as a high dividend growth rate
**Bonus Metric**: The Dividend Yield, which determines how much you get paid to own the stock!
Both of these two dividend stocks we showcase here are quite the ying/yang stocks. As a dividend investor, you want your dividend to grow, as you want a passive income investment. You want to own an asset that increases the amount that pays you every year, without skipping a beat.
Unfortunately, these two dividend stocks had DIVIDEND CUTS during the pandemic that occurred in 2020. However, though these two stocks had dividend cuts, have they made a resurgence? Could you still buy these dividend stocks and consider them great dividend stocks to buy?
We are covering The Halliburton Company (HAL) and Energy Transfers (ETF) in the oil & gas industry - which is typically a higher yielding, higher risk to reward industry.
The Halliburton cut their dividend during 2020. They have increased their dividend since cutting their dividend, but this stock is simply yielding too low for me right now, at just over 1%. The dividend is still 50% less than where it was before the COVID-19 pandemic.
Therefore, Halliburton appears slightly overvalued, as the P/E ratio is higher for the industry, they do have a low/safe dividend payout ratio, but the dividend is simply too low versus other competitors in the industry.
Energy Transfers (ET) is a different story, too. They are the opposite of Halliburton. Energy Transfers stock just increased their dividend by 15% and now produce a $0.265 per share, per quarter. The price to earnings ratio is low/lower, at just over 7, but the dividend payout ratio is higher at over 60%, slightly less than 70%. Therefore, Energy Transfers had a wild past, too.
They ALSO cut their dividend in 2020. Therefore, they are STILL also climbing back to their pre-pandemic dividend level. They are almost there, but the dividend payout ratio is already climbing too, with a yield close to 9% now.
Therefore, on one hand you have a too low dividend payer with The Halliburton Company. Then, on the other hand you have a possible unsustainable dividend yield at almost 9%!
Due to current exposures for both Dividend Diplomats to Oil & Gas, we are on the sidelines here.
We aren't financial experts, nor advisors, but if there was one stock better than the other, Energy Transfers (ET) seems to be the better risk to reward play. You are at least being paid over 8.6% to own ET.
What do you think of these two dividend stocks? Are these stocks to buy right now or stocks to keep a watch on? Are you buying oil stocks as oil companies record a record level of revenue and profit? Is inflation eating into your ability to invest? Let us know in the comments!
Thank you everyone! Subscribe, like and let us know your feedback & questions below!
Follow us on:
►Twitter: https://twitter.com/DvdndDiplomats
►Instagram: https://www.instagram.com/dividenddiplomats/
As always, we recommend conducting your own research to make your own decisions.
#dividends #stocks #stockstobuy #stockstobuytoday #passiveincome #income
Why do dividends matter? Dividends are one of the best passive income sources. Dividend investing increases your passive income, as you reach financial freedom!
Reference items:
►SoFi - Earn $25 FREE Stock when you Invest $100!: https://bit.ly/3BHfJfs
►SoFi - Open a Savings/Checking Account, earn up to $275!: https://bit.ly/3WixHy0
►Fundrise - Dividend Diplomats Use this for Real Estate Investing: https://fundrise.sjv.io/9aJWW
►GoogleFi - Save ~$30 month for switching to Google's Phone Plan: https://g.co/fi/r/1292VY
►Dividend Diplomats Stock Portfolios: https://bit.ly/3fc7G2B
►Dividend Diplomats Blog: https://www.dividenddiplomats.com/
When we evaluate dividend growth stocks, we focus on three dividend diplomat stock screening metrics, to determine if the stock is undervalued:
1.) Price to Earnings Ratio Less than the S&P 500 and the competition
2.) Dividend Payout Ratio Less than 60%. This shows the stock can continue to pay the dividend and increase that passive income stream
3.) Dividend Growth Rate: We want to see a history of the dividend increasing, as well as a high dividend growth rate
**Bonus Metric**: The Dividend Yield, which determines how much you get paid to own the stock!
Both of these two dividend stocks we showcase here are quite the ying/yang stocks. As a dividend investor, you want your dividend to grow, as you want a passive income investment. You want to own an asset that increases the amount that pays you every year, without skipping a beat.
Unfortunately, these two dividend stocks had DIVIDEND CUTS during the pandemic that occurred in 2020. However, though these two stocks had dividend cuts, have they made a resurgence? Could you still buy these dividend stocks and consider them great dividend stocks to buy?
We are covering The Halliburton Company (HAL) and Energy Transfers (ETF) in the oil & gas industry - which is typically a higher yielding, higher risk to reward industry.
The Halliburton cut their dividend during 2020. They have increased their dividend since cutting their dividend, but this stock is simply yielding too low for me right now, at just over 1%. The dividend is still 50% less than where it was before the COVID-19 pandemic.
Therefore, Halliburton appears slightly overvalued, as the P/E ratio is higher for the industry, they do have a low/safe dividend payout ratio, but the dividend is simply too low versus other competitors in the industry.
Energy Transfers (ET) is a different story, too. They are the opposite of Halliburton. Energy Transfers stock just increased their dividend by 15% and now produce a $0.265 per share, per quarter. The price to earnings ratio is low/lower, at just over 7, but the dividend payout ratio is higher at over 60%, slightly less than 70%. Therefore, Energy Transfers had a wild past, too.
They ALSO cut their dividend in 2020. Therefore, they are STILL also climbing back to their pre-pandemic dividend level. They are almost there, but the dividend payout ratio is already climbing too, with a yield close to 9% now.
Therefore, on one hand you have a too low dividend payer with The Halliburton Company. Then, on the other hand you have a possible unsustainable dividend yield at almost 9%!
Due to current exposures for both Dividend Diplomats to Oil & Gas, we are on the sidelines here.
We aren't financial experts, nor advisors, but if there was one stock better than the other, Energy Transfers (ET) seems to be the better risk to reward play. You are at least being paid over 8.6% to own ET.
What do you think of these two dividend stocks? Are these stocks to buy right now or stocks to keep a watch on? Are you buying oil stocks as oil companies record a record level of revenue and profit? Is inflation eating into your ability to invest? Let us know in the comments!
Thank you everyone! Subscribe, like and let us know your feedback & questions below!
Follow us on:
►Twitter: https://twitter.com/DvdndDiplomats
►Instagram: https://www.instagram.com/dividenddiplomats/
As always, we recommend conducting your own research to make your own decisions.
#dividends #stocks #stockstobuy #stockstobuytoday #passiveincome #income
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