Energy Stocks that Promise Dividend Growth and Safety: Chevron Corporation (CVX)

EOG Resources, Inc. (NYSE:EOG)

The third in my list is EOG Resources. The dividend growth at EOG may be less exciting than those of the previous two, at an average rate of 5.50% for the last 3 years, but as long the dividend is safe thanks to its strong fundamentals.  EOG has a very low payout ratio of 15.12 percent (3.2% if based on cash flow). Also, its profitability in recent years has been improving; it currently has a double digit margin of 10.45%. Furthermore, it has remarkably surpassed earnings estimates in the last two quarters by a wide margin. For example, the earnings for the fiscal quarter ending in September 2012 exceeded the estimates by 54 percent. Currently, the company’s P/E ratio is at a decent 30.17 with its forward ratio placed at 21.03.

Source: Nasdaq.com

With this energy boom in our midst, it is wise to sort through many promising stocks. This is only one of my attempts to hunt for those companies that demonstrate their ability to ensure the safety and continued growth of their dividend payments.

The article Energy Stocks that Promise Dividend Growth and Safety originally appeared on Fool.com and is written by Aubrey Tabuga.

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