This 9% Yielding Energy Stock Just Increased Its Dividend Payment
As the dust settles on talk of yen carry trades and market crashes, the price of oil is still above $75 a barrel. Meanwhile, market interest rates are trending lower in anticipation of a Federal Reserve rate cut. With OPEC+ extending production cuts in 2025, the bull case for oil is intact. Still, you don't necessarily need to be a raging oil bull to like buying stock in 9%-yielding Vitesse Energy (NYSE: VTS). Here's why.
Having told investors it would raise its quarterly dividend from $0.50 per share to $0.525 per share in the first-quarter results, Vitesse Energy investors were delighted to receive the upgraded dividend on June 28. The annualized dividend of $2.10 puts Vitesse on a dividend yield of 9.2% at the time of writing.
It's an eye-catching yield, but history is littered with high-yield stocks that ended up disappointing investors. So, how sustainable is Vitesse Energy's dividend?
Source Fool.com
