Breitburn Energy Partners
Market Cap: $1.8 billion
Dividend Yield: 10.6%
Breitburn Energy Partners (BBEP) is independent oil and gas partnership with assets across the U.S., including crude oil and natural gas reserves in Michigan’s Antrim Shale, Wyoming’s Powder River Basins and California’s San Joaquin Basins.
Of course, the most important detail of that previous sentence for investors is the word “partnership” — since Breitburn is an MLP, it is required to pay out at least 90% of its taxable income to shareholders. Right now, that translates to a 48-cent-per-share quarterly payout and an annual yield north of 10%.
Another promising sign, though, is the energy company’s focus. Crude oil has been climbing over the past year, including a jump this week. Meanwhile, natural gas prices have been on the way up since early August.
The stock has more or less muddled along since 2011, never fully recovering from the financial crisis. Still, it’s managed to increase its dividend by 20% since 2007. Plus, the company’s earnings are on pace to grow by 10% per year over the next half-decade.