That last figure directly supports the company’s dividend payment, which was paid out this month at 41 cents per share. The annualized dividend payment, of $1.64 per share, gives a forward yield of nearly 10.3%. Kimbell has a history of maintaining its dividend payment at 75% of the cash available for distribution.

5-star analyst Neal Dingmann is quick to recommend Kimbell, basing his upbeat stance on the company’s ability to maintain its dividend, along with the high potential for continued strong royalties on its properties. Dingmann writes, “Kimbell reported another solid quarter with virtually unchanged cash distributions despite notably sequentially weaker oil prices. The company’s Permian heavy position continues to ensure stable production as operational efficiencies continue at OXY, COP, XOM and the like. We believe KRP could become more acquisitive as M&A generally picks up toward year end with the company having ample dry powder to complete a strategic deal. We forecast stable production ahead with potentially slightly weaker near-term commodity prices though the approximately same distribution likely.”

These comments support Dingmann’s Buy rating on the shares, while his $21 price target points toward a one-year gain of 32%. Add in the dividend yield, and the total one-year return may reach over 42%. (To watch Dingmann’s track record, click here )

There are only two recent analyst reviews on record for this stock, and both are positive, making the consensus rating a Moderate Buy. The stock is selling for $15.87 and its average price target of $20 implies it will gain 26% over the coming months. (See KRP stock forecast )

Clearway Energy (CWEN)

Sticking with the energy sector, we’ll take a look at Clearway Energy, a company involved in the development and ownership of clean and green energy assets in the US market. Clearway is also a leader in the ongoing shift from fossil fuels to green energy. The company has assembled a wide portfolio of energy assets, including some 350 projects.

Clearway’s assets boast a total of 11.5 gigawatts of gross generating capacity, with 9 gigawatts of that being directly owned by the company. The portfolio projects are spread across 32 states and are hosted by some 500 landowners. The projects are clustered in the Northeast, in Illinois and Minnesota, in Texas, and in Arizona and California. Clearway’s assets include wind and solar power generation facilities, as well as energy storage assets and some 2.4 gigawatts of dispatchable power generation of the type used in supporting grid reliability.

Clearway uses its portfolio to support its own secondary mission: providing solid returns for its own investors. The company’s energy assets and activities generated solid revenue in 3Q24, the last reported period; the top line came to $486 million, up 31% year-over-year and above the $442.5 million analysts expected. However, Clearway’s bottom line, an EPS of $0.31, missed the forecast by 23 cents. Clearway generated $301 million in cash from operating activities during the quarter and reported having $146 million in cash available for distribution as of September 30 of this year.

The company’s cash available for distribution supported a dividend increase when the payment was declared this past October. The new common share dividend was set at 42.4 cents per share, a 1.7% increase from the previous quarter’s payment. The new annualized rate, $1.70 per share, gives a forward yield of almost 6%.

This stock has caught the attention of Bank of America analyst Dimple Gosai, who sees solid potential for additional dividend increases going forward. She says of the company, “We rate CWEN Buy as we see compelling upside potential given higher RA pricing in CA power markets supporting above average dividend growth and more than offsetting impact from higher interest rate. Further, a strong 30GW pipeline provides visibility. CAFD drop from sponsor offered at likely 10%+ with no external equity needs through 2027 remain key differentiating factors.”

Gosai’s stance backs up her Buy rating on the stock and a $33 price target that shows her confidence in a 15% upside potential for the coming year. When you add the dividend yield, this stock’s potential one-year return can reach 21%. (To watch Gosai’s track record, click here )

The Street clearly agrees that this is a stock to buy; there are 10 recent analyst reviews here, and the 9-to-1 split favoring Buy over Hold supports a Strong Buy consensus rating. The stock is currently trading for $28.70, and its $34 average price target implies it will gain 18.5% over the next year. (See CWEN stock forecast )

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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.