Investors may not be familiar with New Jersey Resources (NJR ), but it deserves consideration among the wide range of energy-sector stocks. Unlike many of its competitors in the energy sector, which have had to cut or suspend dividends altogether to preserve cash in this difficult environment, New Jersey Resources is outperforming its peer group. As of its March 23 closing price, the stock has returned 20% over the past one year, not including dividends. That is significant outperformance above both its own sector and the broader market as a whole, which is a very impressive performance for an energy company.
The reason for its outperformance is that New Jersey Resources operates a unique business model and balanced operations. This provides the company with relatively stable earnings, even during a time of collapsing commodity prices. New Jersey Resources pays an above-average dividend yield and continues to raise its dividend. This makes it a compelling dividend stock for income investors.