Vermilion Energy: An Under-Followed High Dividend Yield Value Play

A Unique Value Play
Vermilion Energy (VET) was upgraded to a strong buy by Raymond James back in November based on under-valuation and given a $51 price target. Since then there has been little upside due mainly to broader economic issues, particularly in the energy sector. The stock has substantial potential for growth in 2019 and is not affected as much by these macroeconomic headwinds many American stocks have faced of late due to the company's roots being based primarily out of Canada along with other strong international presences (Figure 1). One of the other unique investment factors VET offers is the approximately 8.5% annual dividend yield payed out on a monthly basis.
(Figure 1) Vermilion Energy Is Mainly Located In 3 Main Regions: North America, Europe, and Australia Allowing For Diversified Growth
The company remains very conscientious towards investors, continuing to grow their dividend while maintaining a terrific payout ratio on a monthly basis (Figures 2 & 3). With the new acquisitions in both Canada and America in 2018 and energy stocks trading near 52 week lows it may be time to look into buying Vermilion Energy. The stock offers both potential for high growth (as much as 116% earnings growth over the next year Figure 4) and lower risk thanks to the high dividend and international diversification.

(Figure 2) VET Has Sustained A Very High Dividend Payout Ratio Since Going Public In 2014 & Management Plans To Continue This Going... Read more