Investing

5 'Strong Buy' Natural Gas Dividend Stocks to Buy as Spot Prices Soar

The Products Pipelines segment owns and operates refined petroleum products and crude oil and condensate pipelines, as well as associated product terminals and petroleum pipeline transmix facilities.

The Terminals segment owns or operates liquids and bulk terminals that store and handle various commodities, including gasoline, diesel fuel, chemicals, ethanol, metals and petroleum coke. It also owns tankers.

The CO2 segment produces, transports and markets CO2 to recover and produce crude oil from mature oil fields, and it owns interests in or operates oil fields and gasoline processing plants, as well as operates a crude oil pipeline system in West Texas. It owns and operates approximately 83,000 miles of pipelines and 144 terminals.

Shareholders receive a 5.51% dividend. Mizuho analysts have set a $21 target price. That compares with a $17.95 consensus target for Kinder Morgan stock and Tuesday’s closing print of $19.60.

Ovintiv

This off-the-radar name has seen strong movement since last fall and has undeniable positive prospects. Ovintiv Inc. (NYSE: OVV) engages in the exploration, development, production and marketing of natural gas, oil, and NGLs in the United States and Canada.

The company’s principal assets are in the Permian in West Texas, Anadarko in west-central Oklahoma and Montney in northeast British Columbia and northwest Alberta. Its other upstream assets are in the Eagle Ford in south Texas, Bakken in North Dakota, Uinta in central Utah, Duvernay in west central Alberta, Horn River in northeast British Columbia, and Wheatland in southern Alberta. The company was formerly known as Encana.

Shareholders receive a 1.49% dividend. The Ovintiv stock price target at Capital One Financial is $82. The consensus target was last seen at $61.16. Shares closed at $54.76 on Tuesday.


These five top energy picks are perhaps off the radar for some investors, but they offer outstanding growth potential and reasonable entry points as compared to some other companies in the sector. It may make sense to buy partial positions now and see if prices don’t back up some, as we could see some selling when earnings are delivered for the first quarter.

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