High-Yield Dividend Stocks: AmeriGas Partners (APU)
Sector: Oil and Gas
Dividend Yield: 7.7%
Market Cap: $4 billion
AmeriGas Partners (APU) is an MLP that distributes propane across the U.S, serving about 2 million residential, commercial, industrial and agricultural customers. It’s also one of the better dividend stocks out there at the moment.
It’s not an incredibly sexy industry, and there isn’t much of a chance that APU stock is going to double anytime soon on some massive demand spike for propane … but for income investors looking for reliable cash in high dividend stocks, that’s actually a big plus.
The company has seen stable growth with eight consecutive quarters of modest year-over-year revenue increases, driven in part by the 2012 acquisition of Heritage Propane. Furthermore, distributions have increased steadily in the last few years from 67 cents per share quarterly in 2009 to 84 cents per share currently — a 25% jump in about five years.
Shares of APU stock have admittedly been sluggish lately, with a meager 3% return on share price alone in the last 12 months, compared with 17% gains for the broader S&P 500. However, investors looking for stable dividend stocks should be very comfortable in this low-volatility stock that boasts a beta reading of just 0.37 currently.