Hi-Crush Partners LP
The secret to a big energy dividend? Sand. That’s right, boring sand.
Sand is the main ingredient in “proppant,” which is injected along with various fluids into a well in order to hold open the fractures so hydrocarbons can flow properly.
And as producers continue to frack the various shale formations in the U.S., demand for frac-sand is skyrocketing. Since 2011, demand for frac-sand has surged nearly 25% and some analysts estimate that it will grow another 20% over the next two years.
That’s where the next of our dividend stocks, Hi-Crush Partners (HCLP), comes in.
HCLP is premier and “pure-play” producer of high quality monocrystalline sand via its 561-acre facility in Wisconsin. That high-quality sand continues to be in-demand from various oil service heavyweights like Baker Hughes (BHI).
Overall, that has helped HCLP units surge over the last few years and return a substantial 5.5% in dividends back to shareholders. And with frac-sand demand not abating, investors in HCLP could in store for more juicy payouts.