Like Dividends and Growth? These 2 Energy Stocks Can Satisfy Both Cravings.
While I'm an income investor at heart, I also like a good growth story. However, I've found that the best returns come from companies that can deliver both growth and income. Since 1973, dividend initiators and growers have produced a 10.7% average annualized total return (dividend income plus stock price appreciation), outpacing stocks with no change in dividend policy (7.1%) and non-payers (4.8%), according to data by Ned Davis Research and Hartford Funds. Because of that, I've steadily shifted my portfolio's focus toward dividend growth stocks.
Two companies that allow investors to have their proverbial cake and eat it too are Cheniere Energy (NYSEMKT: LNG) and Magellan Midstream Partners (NYSE: MMP). Here's a closer look at these two dividend growth stocks.
Cheniere Energy is a leading producer and exporter of liquefied natural gas (LNG). It currently operates two liquefaction facilities, Sabine Pass and Corpus Christi, that can produce 45 million tons of LNG annually. It sells the bulk of this LNG under long-term contracts, enabling it to generate reasonably predictable cash flow. That gives Cheniere the money to repay debt, fund its continued expansion, repurchase shares, and pay dividends.
Source Fool.com
