Eagle Rock Energy Partners
4/26 Open: $9.18
Market Cap: $1.2 billion
Eagle Rock Energy Partners (NASDAQ:EROC) is one of the many energy partnerships out there. This is a natural gas play, as Eagle focuses on processing and transporting natural gas and natural gas liquids. Everyone should know by now the trouble for natural gas companies, with prices at historic lows thanks to a massive supply right now.
However, Eagle Rock is not your typical natural gas play that is exploring or “fracking” new finds. It’s simply a middleman, passing along natural gas to end-users and passing along nice dividends to shareholders. Profits are set to hum along at about 60 cents per share annually this year and next, right in line with 2011’s performance, so it’s unlikely the dividend will go down. And considering Eagle Rock’s recent track record of steadily raising dividends — from 15 cents per share in May 2011 to 20 cents a share in November 2011 to 22 cents a share payable in just a few weeks — the 9.2% yield looks like its pretty safe.