Saturday, 12 November 2011 00:00

Oil, Energy Stocks - The Bull Market

12 of the 21 best-performing income stocks in the US over the past ten years are in the energy investment sector. The crude oil and natural gas business accounts for about 15% of all domestic stocks yielding 6% or more. and it takes more than half of the biggest winners. This raises the question... why have dividend-paying energy stocks done so well?

"It's not just their lofty distributions. After all, every stock we examined offered a minimum 6% payout. Could it be that energy stocks in general have been on fire?"

"Well, yes, energy stocks have done pretty well during the past 10 years. That's not surprising -- it hasn't been THAT long since gasoline was under $1 a gallon and oil was priced less than $30 per barrel. It makes sense energy companies would profit handsomely in this sort of environment." 

And there's more to this trend.  Crude oil and natural gas stocks have returned 290% in the past 10 years... Now take this list and limit it only to dividend payers -- notice that the average return jumps to 589%. Dividends paying energy stocks doubled the performance of what used to be one of the market's strongest sectors.

"Energy is in one of the biggest bull markets we've ever seen. But unlike some other historic bull markets, such as the high-flying "New Economy" of the late 1990s, fundamentals are driving prices this time -- not delusions."

In spite of the lost decade for many investors, there are 21 stocks that were always on the rise, like riding a bull market all this time. Here's a sample of the best: 

  • Hugoton Royalty (NYSE: HGT), a trust that generates 87% of its income from natural-gas properties, pays a yield of 6.3% and has returned 347% since 2001.
  • BP Prudhoe Bay (NYSE: BPT) conveys an ownership stake in oil and gas wells located in Alaska's legendary Prudhoe Bay. Thanks to its 8.6% yield, investors have enjoyed a return of 2,320% during the past decade.

And here the resource link with a detailed presentation, names and ticker symbols for all these 21 elite stocks

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