Download now: King Coal Triple Play

Energy Dividends

Energy and Capital's Weekend Edition

Written by Nick Hodge
Posted April 28, 2012

You know, the real way to riches is to invest early and invest often.

If you start when you're 20, you can double your money well before retirement with just a 2% return.

Look at this table showing how interest affects a $10,000 investment:

Time Period

5% Return

7% Return

10% Return

10 Years

$13,700

$15,300

$18,200

20 Years

$22,300

$30,000

$47,200

30 Years

$36,300

$59,200

$122,400

40 Years

$59,200

$116,400

$317,500

It's the tortoise approach in a world where everyone is focused on hare-like gains.

And more often than not, it will help you win the financial race.

Fortunately, the energy sector can deliver both explosive gains and guaranteed long-term returns.

Just this week, Exxon (NYSE: XOM) raised its quarterly dividend by 21% to $0.57 per share. That makes it the largest payer of dividends in the world, paying out more than $10.7 billion every year.

That means every quarter Exxon will pay you $0.57 for every share you own.

If you have 100 shares of Exxon, that's another $228 in your pocket every year.

You can use that to buy more shares that will earn you more dividends.

That's the road to financial independence...

That's how Romney pays a lower tax rate than you or I, but makes millions more.

While Exxon may pay out the most in dividends, other companies pay a higher percentage, which will help you increase returns more quickly.

Pipeline operator TransCanada (NYSE: TRP) just declared a quarterly dividend of $0.44 per share, or $1.76 per share per year. With a share price of $44.00, that's a 4% return — even higher than the 2.5% Exxon is offering.

Others are even steeper; you just have to do a little digging.

Natural gas infrastructure play Enterprise Products Partners (NYSE: EPD) is paying almost 5%.

And with energy in a decades-long bull market, you can profit from the appreciation of the stocks as well.

Any bank accounts you know paying that much?

Start looking at trusts, which rent land to companies to drill for oil and gas, and the dividends get even better...

The Permian Basin Royalty Trust (NYSE: PBT) is paying 6.4%. The ECA Marcellus Trust (NYSE: ECT) is paying 11.7%.

That's guaranteed money in the bank.

You can find the rest of this week's coverage below.  

Call it like you see it,

Editor, Energy and Capital


Cuba Embargo Opportunities:
Obama Coke-Filled Sex Orgies Uncovered!
What was the real takeaway from the Summit of Americas Conference? Obama, hookers, booze, coke-filled sex orgies!

Gold: The Bargain of a Lifetime
We could see dramatic moves in the price of gold come June 28, 2012...

Natural Gas Headed Lower: Shale Production Sparks Glut
The industry's ability to extract shale gas has led to such a rapid surge in production that the market is having difficulty absorbing it all... and yet, the drillers can't stop drilling.

A Two-Decade Coal Bump: Coal Now a Contrarian Play
Outside our retina scan-protected borders there's this crazy thing called the rest of the world. It still burns coal... a lot of it.

Alberta Metal Sands: Bigger than the Oil Sands
I hope you remember what the discovery of the oil sands did for Alberta... and for a tiny company called Suncor. Because it's about to happen again.

Natural Gas Investing with a Twist: The Best and Worst in Gas Profits
Energy and Capital editor Keith Kohl reveals the best and worst of the natural gas industry.

Oil Pirates of Somalia: Gas to $9, Saudis Stockpile Oil
A few years ago, I was following a small Australian company that had talked some tribal elders into letting them search from oil in Northern Somalia, or what is called Puntland.

Natural Gas is Quickly Changing: This Trucking Company is a Buy
Yesterday was Earth Day, so to celebrate I went out and burned a tire. Then I used up a can of Aqua Net to make my Siberian Husky look like Elvis, and finished up with a call to ChemLawn.

Investors Finding the Ground Floor of Natural Gas: A $200 Billion Transition Away from Oil
A small group of investors is discovering a new way to profit in the natural gas boom... find out how.



Related Articles

Investors Can Find It All in the Bakken
There's a piece of Bakken profits for every type of investor.
Do You Have an Energy Royalty Trust?
If you've never caught a 100-pound tarpon, I suggest you do so immediately. If you haven't yet diversified your energy portfolio, I suggest you do that, too.
Energy ETFs
A guide to energy exchange-traded funds (ETFs) and notes (ETNs).
Bad News
Make no mistake, I'm as ardent a supporter of a clean energy future as anyone else. But fact are facts. And the industry as a whole isn't doing so good right now.


Coal Investing Destroyed After Centuries of Dominance
Renewables Take Over
Nuclear Investing After Iran Deal
Look at China
Marijuana Bank Investing
3 Guaranteed Profits: Gambling, Prostitution, and...
Where is the Oil Cycle?
Russian Stocks are Cheap
Fortune Favors the Bold
Renewable Energy is Killing Nuclear Power
No Hope for Nuclear
Putin and Saudi Arabia: Oil Dream Team Meet
Marijuana Bank Investing
3 Guaranteed Profits: Gambling, Prostitution, and...
Elon Musk's Lithium Revolution
Supply! Supply! Supply!
Electric Car Investments
How to Own a Tesla for Just $13,500!