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Is Crescent Point Energy’s 7% Yield Sustainable?

Are you looking for a yield that essentially doubles the rate of return of a long-term government bond? Look no further than Crescent Point Energy (TSX: CPG). Yielding about 7.0% based on its latest monthly dividend of $0.23 per share, this oil-heavy producer is certainly worth considering. With core assets based in the Bakken on both sides of the border being supplemented with production from assets acquired in Utah last year, cash flowed at a record level this past quarter.

One thing investors must always question with a yield this high is whether or not it is sustainable. After looking over the operations at Crescent Point Energy, Motley Fool analyst Taylor Muckerman has faith that this yield level will be maintained, at the very least. On top of that, reserves per share have been growing at an 18% clip per annum for the last 11 years. With asset security like this and the cash flow potential the company most recently displayed, don’t be surprised if Crescent Point turns out to be a big winner in the Canadian energy scene.

Canada’s energy patch is a proven place to find yield in our market.  If you’re looking to diversify your income stream however, click here now and download our special FREE report “13 High-Yielding Stocks to Buy Today”.  This report will have you rolling in dividend cheques from a variety of sources in no time!

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Fool contributors Joel South and Taylor Muckerman do not own shares in any companies mentioned at this time.  The Motley Fool does not own shares in any companies mentioned at this time.

 

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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