3 Big Energy Dividends That Could Be on the Chopping Block

The energy sector continues to make fools of us all. Oil and natural gas prices continue to drift lower, and profits at many energy stocks haven’t exactly been the pocket liners many investors are used to. With the oil rout continuing, lower profits and dwindling cash flows are spanking investors where it counts — their wallets — and dividends are being cut or eliminated left and right. Natural gas specialist Chesapeake Energy (CHK) was the latest in a group of diverse energy stocks to eliminate its dividend altogether. And with oil being so low for so long, analysts postulate that more dividend cuts could be at hand.

Fidelity fund manager John Dowd perhaps said it best: “The industry has not been generating enough money to cover its capital spending and dividends.” With that in mind, many investors holding energy stocks with big dividends may start seeing smaller payouts on the horizon. But which ones? Here are three energy stocks that could cut their dividends before you know it. Dividends on the Chopping Block: Denbury Resources (DNR), Linn Energy (LINE) and BP Plc (BP).

Source: InvestorPlace

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