1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
James Li
James Li
Articles (895)  | Author's Website |

3 Energy Companies With High Dividend Yields

Stocks are trading below Shiller price-earnings, energy sector has lowest ratio

October 07, 2019 | About:

According to the All-in-One Screener, a major GuruFocus Premium feature, three energy companies with good business predictability, high dividend yields and a Shiller price-earnings ratio below 16 are Helmerich & Payne Inc. (NYSE:HP), Schlumberger Ltd. (NYSE:SLB) and Exxon Mobil Corp. (NYSE:XOM).

Energy sector has lowest Shiller price-earnings ratio among sectors

In mid-September, crude oil prices spiked 15% following an attack on Saudi Arabian oil plants. While CNBC columnist Lizzy Gurdus mentioned that Saudi Aramco is reinstating production “faster than expected,” sending oil prices down, the energy sector has underperformed the Standard & Poor’s 500 index over the past few weeks.


GuruFocus’ Shiller price-earnings by sectors page shows the energy sector has a cyclically-adjusted price-earnings ratio of 15.20, the lowest ratio among all sectors. On the other hand, the ratio for the entire S&P 500 is 29.6, approximately 74.1% higher than the mean of 17.


Helmerich & Payne

Tulsa, Oklahoma-based Helmerich & Payne operates horizontal drilling wells for production of U.S. tight oil and gas. GuruFocus ranks the company’s financial strength and profitability 7 out of 10: Even though it has a poor Piotroski F-score of 4, Helmerich & Payne’s debt ratios outperform approximately 80% of global competitors, while profit margins outperform over 70% of global drilling companies.


Helmerich & Payne has a dividend yield of 7.31% and a Shiller price-earnings ratio of 11.57. Gurus with large holdings in the company include Ken Fisher (Trades, Portfolio) and Steven Cohen (Trades, Portfolio).



Houston-based Schlumberger supplies energy products and services through several business segments, which include reservoir characterization, drilling, production and Cameron. GuruFocus ranks the company’s profitability 7 out of 10: Schlumberger has a three-star business predictability rank even though revenues have declined approximately 5.4% per year over the past three years, a rate that outperforms just 56.52% of global competitors.


Schlumberger’s 6.15% dividend yield is near a 10-year high and outperforms 83.95% of energy services companies. Likewise, the company’s Shiller price-earnings ratio of 12.55 outperforms 60.53% of global competitors.


Gurus with large holdings in Schlumberger include Dodge & Cox and First Eagle Investment (Trades, Portfolio). Matthew McLennan, a portfolio manager at the latter firm, will be our keynote speaker at next year’s value conference.


Exxon Mobil

Irving, Texas-based Exxon Mobil explores for, produces and refines oil around the world. GuruFocus ranks the company’s profitability 7 out of 10: Exxon Mobil’s business predictability ranks 2.5 stars out of five even though its three-year revenue growth rate of 4.6% underperforms 68.66% of global competitors.


Exxon Mobil has a dividend yield of 4.91% and a Shiller price-earnings ratio of 10.96. Gurus with large holdings in the company include First Eagle and Fisher.


Disclosure: No positions.

Read more here:

5 Undervalued-Predictable Companies to Consider on Strong Job Growth

4 Outperforming Beverage Companies With Good Dividend Yields

US Mega-Caps Fall to Begin 4th Quarter on Weak Manufacturing Data

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

Visit James Li's Website

Rating: 0.0/5 (0 votes)


Please leave your comment:

Performances of the stocks mentioned by James Li

User Generated Screeners

pascal.van.garsseHigh FCF-M2
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)