February 12th, 2014
by Kyle Anderson, Money Morning
In recent years, liquefied natural gas (LNG) stocks have d the markets by a wide margin.
LNG companies like Cheniere Energy Inc. (NYSE: LNG), Chicago Bridge & Iron (NYSE: CBI), and Golar LNG Ltd (Nasdaq: GLNG) gained 609%, 149%, and 139% from January 2011 through January 2013, respectively.
But the biggest winners have been investors holding LNG dividend stocks.
Dividend stocks typically perform better than non-dividend paying stocks. According to data from Ned Davis Research, dividend-paying stocks in the S&P 500 have outperformed non-dividend paying stocks by almost 8% annually, since 1972.
Now that the Dow Jones Industrial Average has dropped 5.9% in 2014, the S&P 500 4.1%, and the Nasdaq 2.9%, more investors than before are looking for high-yield LNG dividend stocks to bolster their portfolios.
Here is a look at seven LNG dividend stocks to buy now.
7 High-Yield LNG Dividend Stocks
Energy Transfer Partners LP (NYSE: ETP) owns an LNG facility based in Lake Charles, La., which was one of four facilities in the United States to have received government approval through 2013. ETP stock has gained nearly 17% in the last year, but what has really pleased investors is its dividend. Energy Transfer pays a quarterly dividend of $0.92, good for a 6.7% yield.
Golar LNG Limited (Nasdaq: GLNG) is involved with the shipping of liquefied natural gas and has posted an impressive 131% gain since the start of 2011. The stock has cooled off a bit in the last year, down 14%, but its dividend has helped offset those losses.
GLNG is showing bullish signals for 2014. GLNG is one of the largest independent shippers of LNG and has just announced that it will add 11 new vessels to its fleet. GLNG touts a 5.2% dividend yield, or $0.45 per quarter. GLNG stock currently trades at $34.71.
Teekay LNG Partners L.P. (NYSE: TGP) is currently the third-largest independent owner of LNG carriers in the world. Teekay owns a fleet of 67 tankers, 29 of which are used solely for LNG. In the past year, TGP has traded close to even, but its 6.9% yield has rewarded investors. Additionally, Teekay decided to raise its yield by 2.5% in the quarter ending Dec. 31, 2013. TGP stock currently trades at $39.62 with a quarterly dividend payment of $0.69.
A high yield isn't the only reason to keep TGP stock on your radar. Developments in the Panama Canal have Money Morning experts bullish on this stock.
CNOOC Ltd. (NYSE: CEO) owns and operates four of China's six LNG import terminals. CEO stock has faltered lately, down 17% in the past six months. Long-term investors of CEO stock have seen a 76% return on their investment in the last five years. CNOOC trades at $151 and offers its shareholders a quarterly dividend of $3.22. That's good for a 4.9% yield.
ConocoPhillips (NYSE: COP) owns 50% of the Freeport LNG project in Louisiana. Freeport LNG is another one of the four current U.S. projects that have received government approval. In the past year, COP stock has gained 10% and trades at $63.77. ConocoPhillips pays a quarterly dividend of $0.69 - a yield of 4.3%.
Dominion Resources Inc. (NYSE: D) gives its shareholders a quarterly dividend of $0.60 per share (3.6% yield) to go along with the 22% the stock has gained in the last year. Dominion has been paying a dividend since 1987. D stock currently trades at just over $66 per share.
Dominion recently received government approval to transition an LNG import facility in Cove Point, Md., to an export facility. The $3.5 billion construction project should begin in 2014, and the facility is projected to be operational in 2017.
Sempra Energy (NSE: SRE) is another company planning to convert an LNG import facility into an export facility. Sempra's facility, Cameron LNG in Louisiana, is next on the Department of Energy's list of approval for exporting to countries without a free-trade agreement with the United States.
In the past 12 months, SRE stock has jumped nearly 21%. SRE also pays its shareholders a quarterly dividend of $0.63, or a 2.8% yield. When Sempra receives approval from the DOE, investors will be even more bullish on SRE stock.