4 Energy Stocks Going Ex-Dividend Next Week You Should Consider
By: Ned Piplovic,
The list below contains four energy stocks going ex-dividend next week that investors seeking immediate access to dividend payouts should consider.
Any analysis of markets and underlying securities can be made very complex to enhance the prospect of choosing the best stocks for a particular portfolio strategy. Many brokers and financial consultants, as well as providers of financial advisory sites offer a variety of tools, such as the Dividend Screener tool available at DividendInvestor.com.
However, the selection of the four equities on the list below involved just three criteria — ex-dividend dates between Nov. 11 and Nov. 16, one-year total return that is higher than the current dividend yield and classification as a company in the Energy sector.
Sorted by dividend yield in ascending order, below are the four energy companies going ex-dividend next week investors should consider.
4 Energy Stock Going Ex-Dividend Next Week You Should Consider: #4
Delek US Holdings, Inc. (NYSE:DK)
Headquartered in Brentwood, Tennessee, and founded in 2001, Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company focuses on petroleum refining, as well as the transportation, storage, wholesale distribution and retailing of crude oil, intermediate and refined products in Arkansas, Louisiana, Texas and New Mexico. In addition to five refineries and two biodiesel facilities, the company also owns and operates approximately 1,500 miles of pipelines and associated storage facilities with a total capacity of nearly 10 million barrels.
The company has boosted its quarterly period in each of the last four quarters and six times in the last two years. The $0.30 quarterly payout for the upcoming pay date in early December is 3.4% higher than the most recent $0.29 distribution at the beginning of September. This upcoming payout amount is equivalent to a $1.20 annualized amount and a 3% forward dividend yield.
After spiking in mid-2018, the share price reversed direction and entered the trailing 12-month period on a downtrend. During the first 60 days of the trailing 12 month, the share price pulled back nearly 20% before reaching its 52-week low in late December. However, since bottoming out at the end of 2018, the share price has gained more then 30%, as well as advanced more than 10% above the price level from one year earlier.
The 10% one-year asset appreciation and the dividend income combined to deliver a 13.5% total return over the trailing one-year period. While the five-year total return was 36%, the company delivered best returns for the current three-year period. With a total return of 188%, the company’s shareholders nearly tripled their investment over the last three years.
4 Energy Stock Going Ex-Dividend Next Week You Should Consider: #3
Phillips 66 (NYSE:PSX)
Headquartered in Houston, Texas, and tracing its roots to 1875, Phillips 66 operates as a diversified energy manufacturing and logistics company. The company processes, transports, stores and markets fuels and products globally through four segments — Midstream, Chemicals, Refining, and Marketing and Specialties (M&S).
Phillips 66 has boosted its annual payout every year since beginning dividend distributions in 2012. Since then, the company has enhanced its annual distribution amount four-fold. This level of advancement corresponds to an average growth year of nearly 22% per year.
The current $0.90 quarterly dividend is 12.5% higher than the $0.80 payout from the same period last year. This new quarterly amount is equivalent to a $3.60 annualized distribution and a 3.0% forward yield, which is 7.7% higher than the company’s own 2.81% average yield over the past five years.
Since beginning dividend distributions as an independent business entity in 2012, Phillips 66 has enhanced its total annual dividend amount nearly four-fold. This pace of advancement corresponds to an average growth rate of 21% per year over the past seven consecutive years.
After declining significantly between August 2018 and late-May 2019, the share price has regained almost all of those losses. Combined with the rising dividend payouts, the recovering share price delivered a total return of 24% just over the trailing 12-month period. Longer-term shareholders enjoyed even better total returns of 64% over the last three years and nearly 80% over the five-year period.
4 Energy Stock Going Ex-Dividend Next Week You Should Consider: #2
Chevron Corporation (NYSE:CVX)
At the beginning of 2019, Chevron boosted its dividend distribution 6.3% from the $1.12 quarterly amount paid last year to the $1.19 quarterly distribution this year. This current quarterly amount corresponds to a $4.76 annual distribution and a 3.9% forward dividend yield, which is in line with the company’s five-year average yield.
Tracing the beginning of its dividend distributions back to 1913, Chevron has delivered annual dividend boosts for the past 33 consecutive years. Just over the past two decades, the company enhanced its total annual dividend nearly four-fold, which corresponds to a 7% average annual growth rate.
Additionally, the company lowered its dividend payout ratio from the 220% average over the past five years and 82% last year to the current 61% payout ratio. While still slightly above the 50% level considered sustainable, Chevron’s payout ratio is moving in the right direction, which indicates that the company’s earnings should be sufficient to cover future dividend hikes.
The share price lost 35% of its value in 2015 but has been following a general uptrend since its five-year low in August 2015. The combined benefit of the rising dividend income and the share-price growth rewarded shareholders with an 11%% total return over the trailing 12 months. The 2015 share price pullback limited the five-year total return to 25%. However, the share price recovery uptrend contributed to the 30% total return over the last three years.
4 Energy Stock Going Ex-Dividend Next Week You Should Consider: #1
PBF Logistics LP (NYSE:PBFX)
Headquartered in Parsippany, New Jersey, and founded in 2013, PBF Logistics LP owns, leases, acquires, develops and operates crude oil and refined petroleum products terminals, pipelines, storage facilities, and other logistics assets in the United States. The company operates rail and truck terminals, refineries and pipelines and storage facilities for transportation and storage of crude oil, refined products, natural gas and intermediates.
The company has hiked its quarterly dividend payout amount every period since introducing dividend distribution payouts in the second half of 2014. Over the past 26 consecutive quarterly dividend boosts, PBF Logistics has enhanced its dividend payout amount 225%, which is equivalent to an average growth rate of 6.1% each quarter or nearly 22% per year.
The $0.52 quarterly payout for the upcoming distribution is 1% higher than the $0.515 payout from the previous period. This new payout amount corresponds to a $2.08 annualized payout and a 9.7% forward dividend yield, which is nearly 12% higher than the company’s own five-year yield average of 8.69%.
The share price lost more than one-third of its value between the company’s formation in 2014 and early 2016. However, since reaching its all-time low below $17 in early-February 2016, the share price has experienced some volatility while riding a relatively steady uptrend and has gained 28% since the beginning of 2016.
Just over the trailing 12 months, the asset appreciation contributed a few basis points to push the 9.7% dividend yield into a total return in double-digit territory and deliver a 12% total return. The 2015 price correction limited the five-year total return to less than 30%. However, the three-year total return is currently more than 56%.
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Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.