Whose Dividends Can You Trust in Energy?

Updated

Dividends are a great way to enhance the income-generating potential of your portfolio. However, not all dividend payments are a future guarantee. Today, Motley Fool energy analysts Taylor Muckerman and Joel South offer up two stocks they believe will be able to maintain peer-leading payouts.

In Taylor's corner is Seadrill . Despite its high payout ratio, he strongly believes that the tailwinds behind the offshore drilling industry will provide the company with ample cash flow to maintain or even increase its distribution. Not many companies come close to its 8% yield with the additional potential for material share price gains.

For Joel, the master limited partnership space is one that he has faith in from a distribution perspective. His choice? Boardwalk Pipeline Partners . Its fee-based revenue stream ensures future visibility and with a shortage in domestic infrastructure, demand is likely to remain high.

If you're an energy investor on the lookout for new opportunities, then you should consider one of the more exciting plays in the space: Seadrill. To help you size up this stock, one of The Motley Fool's top Stock Advisor analysts has authored a premium research report on the company, covering everything from its strengths and weaknesses to what to expect going forward. Simply click here now to claim your copy and determine whether Seadrill deserves a place in your portfolio.


The article Whose Dividends Can You Trust in Energy? originally appeared on Fool.com.

Joel South has no position in any stocks mentioned. Taylor Muckerman owns shares of Ensco. The Motley Fool recommends Seadrill. The Motley Fool owns shares of Seadrill and Transocean. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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