High dividend energy stock

Screening Filters

1. Sector = Energy

   • Purpose: Restrict results to energy companies.
   • Rationale: Your request is specifically for “energy stocks,” so this filter ensures we only include firms classified in the Energy sector (e.g., oil & gas, pipelines, energy services, etc.). It directly targets the industry you care about.

2. Market Cap ≥ $2,000,000,000 (≥ $2B)

   • Purpose: Focus on mid‑cap and larger companies.
   • Rationale: Larger energy firms tend to have more stable cash flows and more established dividend histories than very small or micro-cap companies. This reduces the chance of including highly speculative or illiquid names whose dividends may be more volatile or unsustainable.

3. Free Cash Flow TTM ≥ 0

   • Purpose: Include only companies generating positive free cash flow over the last twelve months.
   • Rationale: Dividends are ultimately paid from cash, not accounting earnings. Positive free cash flow increases the likelihood that the company can afford its dividend and continue paying it, which is particularly important when seeking high dividend payers.

4. Dividend Yield TTM ≥ 4.5%

   • Purpose: Identify “high dividend” stocks by setting a minimum dividend yield threshold.
   • Rationale: A 4.5%+ trailing twelve‑month yield is meaningfully above the average market yield in most environments. This filter operationalizes “high dividend” into a clear numerical criterion so only higher-yielding energy stocks are included.

5. Dividend Payout Ratio between 20% and 120%

   • Purpose: Screen for dividends that are not unrealistically low or clearly unsustainable.
   • Rationale:
     • Minimum 20%: Excludes companies that pay a token or negligible dividend relative to earnings. If the payout is too low, the yield might be high only because earnings are depressed or distorted.
     • Maximum 120%: Caps the payout ratio to avoid firms consistently paying out far more than they earn, which can signal an at-risk or “overstretched” dividend. Allowing up to 120% leaves room for temporary fluctuations or sectors (like some energy names) with cyclical earnings, while still flagging extreme unsustainability.

Why Results Match Your Request

• All results are energy-sector stocks, directly matching your industry requirement.
• The dividend yield filter (≥ 4.5%) ensures they qualify as high dividend payers in yield terms.
• The positive free cash flow and reasonable payout ratio range help tilt the list toward companies whose dividends are more likely to be supported by actual cash generation.
• The market cap floor (≥ $2B) emphasizes more established energy businesses, which are typically more reliable dividend payers than smaller, highly speculative firms.