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Diversified Gas and Oil has room to grow

US-based gas company makes it through the first half with a higher dividend without piling on debt
Diversified Gas and Oil has room to grow

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

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