2024-06-15 09:43:19 ET
Summary
- National Fuel Gas has a strong history of increasing dividends for over 50 years despite operating in a cyclical sector.
- Natural gas prices are expected to be lower for the remainder of the fiscal year, but the company is forecasting just a small decline in earnings-per-share for 2024.
- Shares are undervalued relative to their historical average and offer a solid, safe yield, with the potential for double-digit returns, making the stock a buy.
When looking for a possible investment, I like to identify companies that have demonstrated the ability to raise their dividend over a long period of time. Ideally, the dividend growth streak will cover one or more recessionary periods as this shows that the company continued to raise its distribution even during periods of economic turmoil.
Why there are many such companies in the more recession-resistant sectors, like consumer staple or health care, I am especially interested in those names that operate in the more cyclical areas of the economy that have lengthy track records for increasing distributions to shareholders....
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National Fuel Gas: A Dividend King In A Highly Cyclical Sector