The article discusses alternative energy dividend stocks beyond major players like Chevron and ExxonMobil. It highlights two specific companies:
Kimbell Royalty Partners (NYSE: KRP)
- Business Model: Kimbell owns mineral rights across 17 million acres, earning a fixed percentage of revenue from oil and gas produced on its land without incurring drilling costs.
- Performance: In the latest quarter, its cash available for distribution (CAD) rose 27% to $60 million, leading to a dividend of $0.47 per unit, translating to an annualized yield of 13%.
- Growth Potential: Analysts predict a 5% CAGR for its adjusted EBITDA from 2025 to 2028, although it trades at a low multiple relative to EBITDA.
The Williams Companies (NYSE: WMB)
- Business Model: As a midstream company, Williams owns extensive pipelines and primarily delivers natural gas, insulating it from fluctuating oil prices.
- Recent Performance: Its available funds from operations rose 17% year-over-year, providing ample room for dividend increases.
- AI Infrastructure: The company is investing in projects that support data centers, positioning itself solidly for future growth.
Conclusion
While both companies present unique advantages, investors should consider them based on individual financial goals and market conditions.
