The purpose of this regularly published post is to study and report on the highest paying dividend stocks in detail to determine if they are also the top dividend paying stocks available. In this report, we feature Alon USA Energy (ALJ).
Alon USA Energy (ALJ) is an independent refiner and marketer of petroleum products. Alon operates in three segments: refining, asphalt, and retail/branded marketing; and its oil refineries have a combined throughput capacity of approximately 217,000 barrels per day (bpd).
Alon is headquartered in Dallas, Texas. And it operates primarily in the South Central, Southwestern, and Wester regions of the United States.
The Great Recession and the collapse in the price of oil have not been kind to ALJ. AJL’s stock price hit a high in mid-2007 of a little over $ 45. The stock price plummeted during the Great Recession, and has meandered since. It currently sits at roughly $ 10, less than 25 percent of its high.
The good news is that ALJ is now incredibly cheap. Sale-per-share is slightly lower than it was before the stock price cratered. But, operating profit, cash flow from operations, and book value of equity are all slightly higher. Therefore ALJ’s price multiples are low in both absolute and relative terms. Furthermore, ALJ never cut its dividend over this time frame (even when things were looking very bleak for the entire economy). And recently, ALJ started to increase its dividend.
Still, Alon is a fairly small (market cap of roughly $ 800 million), risky (beta is a whopping 1.72) company. And our assessment of its overall fundamentals is that they deserve an average rating. We do not consider ALJ to be one of our best monthly dividend stocks.
Stat Sheet – Alon USA Energy 4/15/16
|Industry||Oil & Gas Operations|
|Market Cap||$ 706|
|Price Volatility||Above Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016)
If you would like to see the stocks we would consider our best monthly dividend paying stocks (as well as stocks that have other characteristics we feel are admirable) click the link below.
Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.