4 Top Energy Stocks Gushing Dividends. Lightstream Resources Ltd
Less than a year ago investors were selling Lightstream Resources Ltd (TSX: LTS) off in droves as the company slashed its dividend by 50% and took a knife to capital expenditure. But these measures plus a range of asset dispositions formed a key part of the company’s turnaround strategy.
Since then the company has come a long way while continuing to pay a juicy dividend yield of a whopping 8%.
For Q2 2014, funds flow from operations grew 1% quarter-over-quarter and 2% year-over-year, while its netback spiked 2.5% quarter-over-quarter and a healthy 15% year-over-year, despite the company continuing to dispose of its non-core assets. All of this highlights the growing profitability of Lightstream’s operations since embarking on the turnaround strategy.
When these factors are considered in conjunction with a total average payout ratio of 21%, Lightstream’s dividend appears safe from any further cuts, making it an attractive acquisition for income-hungry investors willing to bet on the success of its turnaround strategy.