Stocks for High Dividend Yield
Posted: Fri Jul 19, 2013 6:23 pm
Lightstream Resources for dividends - -- See our profile under the Watch List Tab
Lightstream Resources (LTS.CA and LSTMF) is a Calgary based E&P that pays monthly dividends. At the July 19 closing price the annual dividend yield is 10.8%. This is not just a yield play. The share price has a long way to go to reach Fair Value.
We recently published a profile on the company. The big jump in WTI crude oil prices really improves the outlook for the company. It is now generating more cash flow than it needs to cover this year's capex. Free Cash Flow is a very good thing! About 85% of their production is crude oil.
Current production is ~46,000 boepd and it is ramping up to over 50,000 boepd by December. This is not a small company, so don't let the fact that it trades on the pink sheets scare you away. Even is you buy it in the U.S. off the pink sheets, you still get the monthly dividends.
What they have going in the Cardium is very good. This shallow oil is now being harvested with horizontal wells that have outstanding economics at today's oil price. If you have not heard of the Cardium, just Google it. It is one of the most promising light oil plays in Canada.
Last summer an analyst (who I do not respect) wrote an article that the company would need to stop paying dividends to survive. His BS article crushed the share price. The company did not stop paying dividends. I have talked to management and they are committed to paying monthly dividends. A high percentage of shareholders have elected to reinvest dividends, so they really don't have to pay out much cash.
IMHO the stock is a Screaming Buy up to $11/share. If WTI stays over $100/bbl this stock could move over $15/share.
I now believe WTI crude oil will stay over $100/bbl the remainder of the year and probably well into Q2 next year. Global demand for oil ALWAYS goes up in the 2nd half of the year. Q2 demand was ~89.5 million BOPD. Q4 demand will be over 91.5 million BOPD. Why? Because the global economy is gradually improving (more industrial demand) and 90% of humans live in the northern hemisphere (more demand for heating oil).
Others for high yield to consider are: GST-PA, HCLP, VNR
Lightstream Resources (LTS.CA and LSTMF) is a Calgary based E&P that pays monthly dividends. At the July 19 closing price the annual dividend yield is 10.8%. This is not just a yield play. The share price has a long way to go to reach Fair Value.
We recently published a profile on the company. The big jump in WTI crude oil prices really improves the outlook for the company. It is now generating more cash flow than it needs to cover this year's capex. Free Cash Flow is a very good thing! About 85% of their production is crude oil.
Current production is ~46,000 boepd and it is ramping up to over 50,000 boepd by December. This is not a small company, so don't let the fact that it trades on the pink sheets scare you away. Even is you buy it in the U.S. off the pink sheets, you still get the monthly dividends.
What they have going in the Cardium is very good. This shallow oil is now being harvested with horizontal wells that have outstanding economics at today's oil price. If you have not heard of the Cardium, just Google it. It is one of the most promising light oil plays in Canada.
Last summer an analyst (who I do not respect) wrote an article that the company would need to stop paying dividends to survive. His BS article crushed the share price. The company did not stop paying dividends. I have talked to management and they are committed to paying monthly dividends. A high percentage of shareholders have elected to reinvest dividends, so they really don't have to pay out much cash.
IMHO the stock is a Screaming Buy up to $11/share. If WTI stays over $100/bbl this stock could move over $15/share.
I now believe WTI crude oil will stay over $100/bbl the remainder of the year and probably well into Q2 next year. Global demand for oil ALWAYS goes up in the 2nd half of the year. Q2 demand was ~89.5 million BOPD. Q4 demand will be over 91.5 million BOPD. Why? Because the global economy is gradually improving (more industrial demand) and 90% of humans live in the northern hemisphere (more demand for heating oil).
Others for high yield to consider are: GST-PA, HCLP, VNR