3 Monthly Dividend Stocks From the Energy Sector to Buy Today

Looking for a monthly dividend stock? If so, Baytex Energy Corp. (TSX:BTE)(NYSE:BTE), High Arctic Energy Services Inc. (TSX:HWO), and AltaGas Ltd. (TSX:ALA) are three of the energy sector’s best options.

| More on:
The Motley Fool

As many investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and some investors prefer to receive their dividends on a monthly basis. With both of these factors in mind, let’s take a look at three monthly dividend-paying stocks from the energy sector that you could add to your portfolio today.

1. Baytex Energy Corp.: 6.7% yield

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is one of the largest producers of crude oil and natural gas in North America. It pays a monthly dividend of $0.10 per share, or $1.20 per share annually, giving its stock a 6.7% yield at today’s levels. Investors should also note that the company decreased its dividend by 58.3% in December of last year as a result of lower commodity prices, but I think the current rate is sustainable for the time being.

2. High Arctic Energy Services Inc.: 5.3% yield

High Arctic Energy Services Inc. (TSX:HWO) is one of the largest providers of drilling and specialized well completion services, nitrogen services, and equipment rentals in Papua New Guinea and Canada. It pays a monthly dividend of $0.0165 per share, or $0.198 per share annually, giving its stock a 5.3% yield at current levels. The company has also increased its annual dividend payment for two consecutive years, and if it maintains its current rate, and I think it will, this streak will reach three years in 2015.

3. AltaGas Ltd.: 4.9% yield

AltaGas Ltd. (TSX:ALA) is one of the largest energy infrastructure companies in North America. It pays a monthly dividend of $0.16 per share, or $1.92 per share annually, giving its stock a 4.9% yield at today’s levels. It is also worth noting that the company has increased its annual dividend payment for five consecutive years, and its increased amount of funds from operations could allow this streak to continue for another five years.

Which of these stocks should you buy today?

Baytex Energy, High Arctic Energy, and AltaGas are three of the top monthly dividend-paying stocks in the energy sector today. Foolish investors should take a closer look and consider buying one of them.

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.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »