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3 Dividend-Paying Energy Stocks to Buy Hand Over Fist in May

As energy prices continue to rise, it’s important to consider dividend stocks in the energy sector that range from high risk to low risk. The energy sector, particularly oil and natural gas prices, is known for its volatility, so it’s crucial to be aware of the risks involved. However, there are opportunities for income investors to collect dividends in the energy space that align with their risk tolerance.

Three dividend stocks to consider in May are Enterprise Products Partners (EPD), Chevron (CVX), and Devon Energy (DVN). Enterprise Products Partners operates in the midstream segment of the energy sector, providing essential pipeline, transportation, storage, and processing assets for a fee. This business model ensures a steady stream of cash flow to support its distributions, which have increased annually for 25 years. With a distribution yield of 7.4%, Enterprise Products Partners offers a substantial return for investors.

Chevron, on the other hand, is a diversified energy company with operations across all three segments of the industry. This diversification helps mitigate risks associated with oil price fluctuations. Chevron’s strong balance sheet and track record of 37 consecutive dividend increases make it a reliable option for income investors. With a dividend yield of around 4%, Chevron offers a stable income stream.

Devon Energy is a U.S.-based upstream energy producer whose financial performance is closely tied to the price of oil and natural gas. As a result, its dividend policy is variable and subject to change based on financial results. The current dividend yield is 4.7%, but investors should be prepared for fluctuations. While Devon Energy carries more risk compared to Enterprise and Chevron, it can provide a higher yield during periods of rising energy prices.

Overall, there is something for every dividend investor in the energy sector. Whether you prioritize safety, diversification, or higher risk-reward opportunities, Enterprise, Chevron, and Devon offer attractive yields for income investors as we head into May.

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