Ranking the Safest Dividend Stocks in the Energy Sector Right Now
ExxonMobil, Enterprise Products Partners, and Brookfield Renewable are safe income plays.
Overview
Many investors buy energy stocks for stable dividends. However, volatile commodity prices, high debt, or weak cash flows can drive some of those companies to reduce their payouts.
To determine if a dividend-paying energy stock is safe to buy in this choppy market, we should review its leverage, dependence on oil prices, and its payout ratio. Moreover, these stocks should ideally trade at a discount to the S&P 500 (SNPINDEX: ^GSPC).
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.