Dividends can provide stable and reliable returns in a market that is ruled by uncertainty and governed by events that are completely outside of the control of investors. In the energy sector, prices are extremely volatile and can be affected by as little as a change in traditional weather patterns that results in warmer winters or as much as a hurricane hitting the Gulf of Mexico or the United States going to war. Focusing on energy stocks that provide stable and lucrative dividends allows you to benefit on the upswing while being able to reinvest and buy into a stock while it is cheap without any additional cost through dividend reinvestment. Let’s take a look at the following energy stocks to explore ideas for long term opportunities and reliable returns over time.

Atlas Pipeline Partners (APL) operates a natural gas pipeline system that extends from Ohio into western New York and processes more than 50 million cubic feet of natural gas per day. Its profits took a great leap from $58 million in 2009 to post $275 million in 2010, showing steps in the right direction after its loss of more than $584 million in 2008. As a result, its dividend has grown over the past four quarters from $0.40 per share to $0.55 at a payout ratio of 0.63 and a yield near 6%.

Atlas Pipeline Partners stock has also seen a great three years as it moved from $7 per share to $37, but it may be reaching its worth soon and ready for a pullback. I think that this is a much greater long term investment than a short term position, and I feel Atlas Pipeline Partners will be able to hold its dividend but it may lose value due to a decline in profits in 2011.To continue reading, click here.

Over the last few years major oil companies have become the target of environmentalists, politicians and consumer advocates. The biggest reason is from consistently high prices charged for crude oil and gasoline. For investors these stocks appear to be enticing because of the potential profit margins. However, several major players have recently announced challenges associated with the refining portion of the business. In this article, I analyze Anadarko Petroleum (APC), Conoco Phillips (COP), Chevron Corporation (CVX), Petro China (PTR) and BP PLC (BP) on a relative value and earnings basis. My analysis and ideas should be used as a starting point for all future research.

Anadarko Petroleum

Anadarko Petroleum trades at a forward price earnings ratio of 23.18. The balance sheet includes $12.98 billion in revenues, $3.29 billion in cash and $13.94 billion in debt. The earnings have been volatile over the last three quarters going from $.29 to $1.14. Then declining in the third quarter of 2011 to $.66 (see below).

Anadarko Petroleum Earnings per Share

Despite these numbers, the price of the stock is above the 200 day moving average of $75.81. The bullish move in shares follows a test of support at the 200 day moving average earlier in the month. The divergence in these numbers is from the company focusing on exploration. These activities are taking place off of the coast of West Africa with major discoveries in areas such as: Mozambique and Ghana. The momentum is showing how investors are bidding up the stock.

Residual income is a much more valuable asset to a long term investment strategy than gains that occur only once. After a single investment yields regular returns, you are able to strengthen your position at no additional cost by placing the returns back into the company. Companies with valuable dividend stock provide regular returns without a loss of stock value and consistent revenue to support the dividend. The ability to support sustained growth over a long period of time shows just how frequently a stock can pay out and how lucrative its payout will be. In this article, I analyze five stocks that, in my opinion, have the durable competitive advantages to succeed over the long run. Of course, this analysis should serve as a starting point for your own due diligence.

Altria (MO) is a potential buy candidate due to its resilience in a difficult market as the leading tobacco producer in the United States. Despite regulations, a decline in smokers and public anti-tobacco sentiments the company has continued to make over $3 billion a year in profits each year. It has persisted despite the major threat imposed on it from regulation and a public drive to move consumers away from cigarettes. Altria pays out quarterly dividends at a $1.64 rate annually and provides a yield of just under 6%. Its dividend grew in 2011 from $0.38 per share to $0.41 and its stock almost doubled from $16 to $28 per share in only three years, making this a stock that you should own. The payout ratio is 93%.

In this article, I will discuss five stocks which have relatively better valuations than their competitors. Due to low valuation, I expect these stocks to offer better returns than their peers. These days investors are worried about getting caught in value traps. However, the analysis below shows why there is value in these names.

People’s United Financial, Inc. (PBCT) is a bank holding company for People’s United Bank. Shares of the company are currently trading near $13 per share and have traded between a narrow range of $10.5 and $13.96 per share. The company has a relatively low beta of 0.44, indicating that the stock is not volatile. People’s United Financial has reported a dividend yield of 4.7%.

Bank of America (BAC) is a competitor of People’s United Financial. Currently, People’s United Financial reported a quarterly revenue growth of 39.8% and an operating margin of 29.4%. On the other hand, Bank of America reported a quarterly revenue growth of 17.6% and an operating margin of 4.5%. While People’s United Financial reported a price-to-equity ratio of 23.9 times, Bank of America reported the same value at 725 times, indicating that its shares are significantly more expensive than that of People’s United Financial. The company has a lower 5 year expected price-to-earnings-to-growth ratio of 0.8 times than the industry average of 1.65 times. This indicates that it is cheaper than what is being offered by most of its competitors. People’s United Financial has one of the higher dividend yields among its competitors.To continue reading, click here.

Gold. The very word conjures up images of opulence and feelings of comfort and joy. Why is gold such an attractive investment? Because of its short supply. The entire quantity of gold in the Universe can fit into a fairly large field. And the fact that it never tarnishes or depreciates in value: it is solid and inorganic. In this article, I analyze some of my best ideas in the gold mining industry. I provide my fair value estimate based on a discount cash flow analysis, assuming a $1600 per troy ounce gold price and a 10% cost of equity.

Goldcorp Inc. (GG): This stock is priced at around $45. Its earnings per share is 1.97%, its price to earnings ratio is 23.08, and it also yields a dividend of .40%. Its market capitalization is $36.78 billion. Its debt-equity is 3.45 and current ratio is 3.82. Its growth for the past 5 years has been impressive at 29.38% per annum. Growth for 2012 is expected at 63.5% and 2013 at 29.5%, predicted to be sustained at 43.6% per annum for the next 5 years. Goldcorp met its 2011 cash cost estimates and target gold production. This shows the high quality of their mine portfolio. On a DCF basis, shares should trade around $60 apiece. Analysts have a high target of $78.50. In my opinion, management is competent, and is right to speak in optimistic terms about production. This, along with the concrete results, instills confidence, despite the slightly high debt-equity.

Yamana Gold Inc. (AUY): You buy one share at $16 and get an earnings per share of $0.76 and a price to earnings ratio of 20.63, with a dividend yield of 1.30%.To continue reading, click here.