Dividend yields above 10 per cent usually indicate some kind of cut is on the way, unless one of the company’s shareholders is an oligarch. Diversified Gas and Oil (DGOC) has a chief executive named Rusty Hutson Jnr and a portfolio of Appalachian basin assets; that combined suggests this is not oligarch territory.
IC TIP:
Buy
at
100p
Tip style
Income
Risk rating
High
Timescale
Medium Term
Bull points
Come through the first half with earnings intact
Dividend looks genuine
Gas in better shape than oil
Hedging strategy paying off
Bear points
Debt levels
Needs acquisitions to grow