Investing in equal parts of Brookfield Renewable (BEPC 2.95%), Vitesse Energy (VTS -0.21%), and Chevron (CVX -0.34%) can yield 5.7% in dividends. Energy and utilities sectors are known for their high yields, compensating patient shareholders for market cyclicality. However, focusing solely on yield can lead to poor investment decisions. It’s essential to find companies with a high yield and solid business models supporting earnings growth.
Brookfield Renewable excels in green energy, offering a 4.8% forward-yielding stock with strong commitment to rewarding shareholders. With a diverse portfolio of renewable energy assets and steady distribution growth, it’s a top pick for long-term investors.
Vitesse Energy, a small-cap oil and gas company, offers an 8.5% annualized yield with a fixed dividend. While its sustainability may depend on oil prices, Vitesse employs a hedging strategy to protect earnings. Management’s ability to identify productive investments and predict oil price movements is crucial for investors.
Chevron, despite its stock’s 55% growth in the last three years, still yields 3.9% with consistent dividend increases. Record profits have allowed Chevron to boost reinvestment and buyback programs, with a significant capital return yield of 8.5%. With a healthy balance sheet and readiness for oil price fluctuations, Chevron remains a strong contender in the energy sector.