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Highlights
- MPLX LP (NYSE:MPLX) has a P/E ratio of 10.46 and its stock rose 32% YTD.
- The Energy Transfer LP (NYSE:ET) stock grew 38.67% YTD.
- The Energy Transfer LP (NYSE:ET) stock grew 38.67% YTD.
The energy sector typically performs well in the early stages of inflation when the demand is higher than supply. This year energy stocks have rallied. Energy stocks are better when the energy companies offer a dividend.
Here we discuss three energy stocks that gave more than 7% dividend yields in 2021.
MPLX LP (NYSE:MPLX)
Findlay, Ohio-based MPLX went public in October 2012. It is a master limited partnership (MLP) that owns and operates energy infrastructure and logistics such as pipelines and processing assets and also provides distribution services.
Its Logistics and Storage (L&S) segment provides services including storage, transportation, distribution and marketing of crude oil, refined petroleum products, etc. The Gathering and Processing (G&P) segment provides gathering, processing as well as transportation services for natural gas and liquids.
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The company earned US$2.56 billion in revenue for the quarter ended September 30, 2021, while the revenue for the same period in 2020 was US$2.25 billion. Its net income came in at US$754 million or US$0.74 per share diluted compared to US$635 million or US$0.61 per share diluted in the corresponding quarter of the previous year.
The energy company reported having cash and cash equivalent of US$39 million as of September 30, 2021, versus US$15 million as of December 31, 2021.
This midstream energy infrastructure company has a current market capitalization of US$28.9 billion. Its P/E ratio is 10.46, forward P/E for one year is 10.13, and P/B Ratio is 2.33.
The company has a dividend yield of 10.01% with an annualized dividend of US$2.81. with the beta of 1.82, the earnings per share currently are US$2.71.
The MPLX stock gained 35.32% YTD and closed at US$28.76 on December 15, 2021.
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Energy Transfer LP (NYSE:ET)
Dallas, Texas-based Energy Transfer owns crude oil, natural gas, and natural gas liquid asset platforms. These are located in Texas and the midcontinent region of the US. It also offers gathering and processing of the assets.
Financially, the company’s earnings per share diluted increased to US$1.60 in nine months ended September 30, 2021, compared to the previous year’s loss per share diluted of US$0.43.
Its revenue for the nine months was US$48.7 billion versus US$28.9 billion in the corresponding period in 2020. Its income increased from all the segments this year. The operating income rose to US$7.1 billion against US$1.6 billion in 2020 for nine months period.
The company had cash and cash equivalents of US$313 million as of September 30, 2021, while these were US$367 million as of December 31, 2021.
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With a current market capitalization of US$25.7 billion, its P/E ratio is 4.64, and the forward P/E ratio for one year is 5.19. Its IPO came in February 2006.
Energy Transfer has a dividend yield of 7.39%, with an annualized dividend of US$0.61. Its current EPS is 1.80, the beta is 2.32 and the P/Book Ratio is 0.83.
The ET stock grew 38.67% YTD and closed at US$8.36 on December 15, 2021.
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Bottom line
Dividend income is a favorite among investors as a source of passive income. After the central bank’s statement on Wednesday, December 15, to quicken the tapering of asset purchases, all segments’ stocks rose, the energy segment being one of them.
