Dividend Growth Stocks to Buy: Helmerich & Payne (HP)
Dividend Yield: 2.4%
Helmerich & Payne (HP) is among the ranks of solid dividend growth stocks you should consider for your retirement account.
Helmerich & Payne is a contract driller for the oil and gas industry. While the bulk of HP’s activity is in the United States, it also has operations in Ecuador, Colombia, Argentina, Tunisia, Bahrain and the United Arab Emirates.
The shale field explosion has given Helmerich & Payne a substantial advantage over competitors, as it has rigs better suited for this type of drilling. As a result, H&P has had higher utilization rates and has earned higher day rates than many other drillers in the U.S.
While the stock’s 2.4% yield is nothing to scream about, its dividend growth rate sure is — HP’s payout has grown more than 900% (from 6 cents to 62.5 cents quarterly) since 2011! While dividend growth likely won’t continue at that rate, you should expect a much better yield on cost the longer you hold HP stock.