High yields are often found in sectors that are out of favor, which is why you can get some pretty impressive dividends from the energy sector today. There are definitely headwinds here, including the broader shift toward cleaner alternatives, but oil and natural gas are expected to remain vital energy sources for a long time to come.
Which is why, if you can deal with collecting big dividend checks from unloved stocks, you should consider Chevron (NYSE: CVX), Enterprise Products Partners (NYSE: EPD), and, at the lower end of the yield spectrum, Helmerich & Payne (NYSE: HP).
Chevron is one of a small group of massive global companies that have integrated assets spanning from the upstream (drilling) to the downstream (chemicals and refining) areas of the energy industry. It has increased its dividend annually for an incredible 33 consecutive years, making it a Dividend Aristocrat. And while 2020 was a tough year, given the declines in demand resulting from the efforts to contain the spread of the coronavirus, Chevron muddled through in stride. It wasn’t exactly a good year, but it didn’t cut its dividend like peers Royal Dutch Shell and BP.