As the world looks toward cheap and low carbon sources of energy, natural gas continues to get the nod from many power providers and consumers.
And while producers’ focusing on the energy source have stalled in recent years – due to its low average selling price – our Best Dividend Stocks List pick in the sector has prospered. This is because it doesn’t dig the fuel up out of the ground; it distributes natural gas as well as electricity and liquefied propane gas. This has helped it generate steadily increasing dividends for 30 years, including a 5.26% jump after we made our initial pick back in February.
See our original article on our pick here.
But that increase could be a drop in the bucket going forward. That’s because our energy distributor continues to get more global in its operations. New moves overseas into Europe have made it a significant player in the continent’s natural gas and propane markets. Given the region’s demand profile for the fuel, our Best Dividend Stock pick will see higher profits and revenues over the long haul for its operations.
When combined with its steady business here at home, our pick continues to show it has the goods to be part of every dividend investor’s portfolio.
To summarize, here are five reasons why you should own this stock:
- Has paid common dividends for 133 consecutive years and has increased its dividends annually in each of the last 30 years.
- Vast regional monopoly in a highly populated area of the country.
- Uses its master limited partnership (MLP) subsidiaries efficiently to minimize taxes and boost its cash flows.
- Is becoming increasingly global in its operations, with recent game-changing buys overseas.
- Low payout ratio of less than 43% and growing yield of 2.09%.