Energy stock declines have outpaced oil and gas price falls this year, although earnings are still at or above historic averages. As a result, dividend yields in the sector can exceed 10 per cent, and even 20 per cent in the case of Diversified Energy (DEC).
Tip style
Value
Risk rating
High
Timescale
Medium Term
Bull points
- Increasing production
- New projects lower portfolio risk
- Dividend return expected in 2025
- Supportive June fundraising
Bear points
- Possible project delays
- Management structure
But some of the most glaring discounts, and recent price falls, are to be found among those companies – such as Jadestone Energy (JSE) – that have fallen off the dividend list. The company stopped paying out amid an eight-month production shutdown at its Montara field last year, and has been prevented from resuming dividends by high capital spending.