3 Oil and Gas Companies Paying Regular Dividends

These companies offer attractive dividend yields for your portfolio.

| More on:
The Motley Fool

These three companies explore for, develop, and produce indispensable oil and natural gas required by industry and consumers on a daily basis. Despite the price volatility inherent in the oil and gas industry, these companies provide consistent shareholder returns.

1. Peyto Exploration & Development

Based in Calgary, Alberta, Peyto Exploration & Development (TSX: PEY) explores for and produces unconventional natural gas in Alberta’s Deep Basin. In the Deep Basin, the company has 100% interest in five processing facilities, which represent a capacity of 340 million cubic feet per day.  Its operations in the basin include over 900 kilometres of pipelines and over 750 producing zones. Regarding its operations in the basin, 99% are operated by Peyto and 98% are processed by Peyto.

Peyto’s dividend rate is $1.20 and its dividend yield is 3.1%. The company’s three-year average dividend growth rate is 45.71%. In June, Peyto confirmed that the monthly dividend for June 2014 of $0.10 per common share would be paid on July 15, 2014.

2. Enerplus

Based in Calgary, Alberta, Enerplus (TSX: ERF)(NYSE: ERF) engages in the exploration and development of crude oil and natural gas in Canada and the U.S. The company has a portfolio of high-quality, low-decline oil and gas assets. Its operations include U.S. oil in the Williston Basin and U.S. natural gas — Marcellus shale gas interests in northeastern Pennsylvania. Its operations also include its Canadian crude oil portfolio producing from formations in the Western Canadian Sedimentary Basin, and natural gas from the Deep Basin.

Its dividend rate is $1.08 and its dividend yield is 4.2%. Its three-year average dividend growth rate is 14.61%. In late June, Enerplus announced that a cash dividend of $0.09 per share would be paid on July 21, 2014.

3.  Penn West Petroleum

Based in Calgary, Alberta, Penn West Petroleum (TSX: PWT)(NYSE: PWE) is one of the largest conventional oil and natural gas producers in Canada. The company has a dominant position in light oil in Canada on a land base covering roughly five million acres. Penn West is continuing to focus its development programs on its light-oil targets in the Cardium, Viking, and Slave Point plays in western Canada. Its board approved a capital budget of $900 million for 2014. Two thirds of the investment is directed toward light oil opportunities.

Penn West Petroleum’s dividend rate is $0.56 and its dividend yield is 5.6%. Its three-year average dividend growth rate is 17.28%. On April 30, 2014, the company declared its Q2 dividend of $0.14 per share would be paid on July 15, 2014.

Consider essential oil and gas companies that pay regular dividends. If you’re looking for an energy component to your stock portfolio, the above three Alberta companies are worth your due diligence.

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 Michael Ugulini owns shares in Peyto Exploration & Development.

More on Investing

Young Boy with Jet Pack Dreams of Flying

Former Domino’s Pizza CEO Joins Forces With Restaurant Brands. Is the Stock Set to Skyrocket?

Patrick Doyle turned Domino's around starting in 2010, achieving tremendous results. What's in store for QSR stock?

Read more »

Hourglass projecting a dollar sign as shadow

New Investor? If You Do Nothing Else With Stocks, Learn This Lesson

Time is the most powerful thing on an investor's side. Here are two powerful ways to use it.

Read more »

lab worker inspects test tubes
Dividend Stocks

Warren Buffett’s Buying This Passive Income Stock

Berkshire began buying this chemical company earlier this year and hasn't stopped.

Read more »

Arrowings ascending on a chalkboard
Tech Stocks

Why I Think Nuvei Stock Has Market-Beating Potential

Given its growth initiatives, expanding addressable market, and attractive valuation, I believe Nuvei has the potential to outperform the broader…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Need Passive Income? Turn $5,000 Into $23.85 Every Month

If you're looking for passive income that comes in like a paycheque, this dividend stock provides that to you along…

Read more »

A worker drinks out of a mug in an office.
Metals and Mining Stocks

5 Things to Know About Nutrien Stock in December 2022

Trading at heavily depressed multiples, Nutrien stock is a great opportunity, as it delivers solid financial results and an optimistic…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Shopify Stock Rose 15% in November: Is it a Buy Today?

Shopify (TSX:SHOP) stock rallied 15% this month but is still down 69% year to date, so should investors worry that…

Read more »

Man holding magnifying glass over a document

The 3 Most Oversold TSX Stocks to Watch Before 2023

Many oversold stocks are merely victims of market circumstances and potentially profitable bargains when they seem downtrodden.

Read more »