Consider These 3 Stocks for Monthly Income

Start with these leading stocks and build up a monthly income stream.

| More on:
The Motley Fool

It’s nice to have an income stream that comes in like clockwork, so consider these three first-class companies for consistent passive income.

1. Crescent Point Energy

Crescent Point Energy (TSX: CPG)(NYSE: CPG) set new production records in 2013. It realized average daily production of over 120,000 boe/d. This represented a 22% increase over its 2012 average daily production rate.

A conventional oil and gas producer, its assets are strategically concentrated in properties encompassing high quality, long life, operated, light and medium oil and natural gas reserves in Western Canada and the U.S. Crescent Point recently completed the acquisition of Saskatchewan Viking oil assets from Polar Star Canadian Oil and Gas. The acquired assets include over 2,800 boe/d of high-quality, high-netback production.

Crescent Point Energy confirmed that the dividend payable August 15, 2014, would be $0.23 per share. The company’s dividend yield is 6.10% and its five-year average dividend yield is 6.00%. Crescent Point’s dividend rate is $2.76.

2. Enerplus

Enerplus (TSX: ERF)(NYSE: ERF) had Q1 2014 production volumes increase by 5%, versus Q4 2013, averaging 98,821 boe/d. The increase was due to record production from the Marcellus.

The company’s U.S. natural gas area mainly consists of its non-operated Marcellus shale gas interests situated in northeastern Pennsylvania. Enerplus holds an interest in approximately 57,500 net acres in this area. In 2013, Enerplus achieved 9% growth in annual average production.

Enerplus pays monthly dividends from the cash flow generated from the sale of its oil and natural gas production. Its dividend yield is 4.20% and its dividend rate is $1.08. The company’s three-year average dividend growth rate is 14.61%. On July 24, 2014, Enerplus announced that a cash dividend of $0.09 per share will be payable on August 20, 2014.

3. Peyto Exploration & Development

Peyto Exploration & Development (TSX: PEY) was recognized as the ‘Producer of the Year’ by Oilweek magazine in 2013. Peyto engages in the exploration and development of high-quality gas properties in the Deep Basin of Alberta. The company has a 97% interest in nine processing facilities

The company set new production and reserves per share records in 2013. Its annual production increased 33% from 267 millions of cubic feet equivalent per day (MMcfe/d) in 2012 to 356 MMcfe/d in 2013. Its reserves per share increased 19%.

Peyto’s production increased 30% from 332 MMcfe/d (55,372 boe/d) in Q1 2013 to 433 MMcfe/d (72,209 boe/d) in Q1 2014.

Peyto Exploration & Development’s dividend yield is 3.20% and its dividend rate is $1.20. The company’s three-year average dividend growth rate is 45.71%.

Passive income is what happens to you while you’re doing other things. Get on with the rest of your life and let these income streams fill your trading account monthly.

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 of PEYTO EXPLORATION AND DVLPMNT CORP..

More on Investing

Silver coins fall into a piggy bank.
Tech Stocks

How to Turn a $500 TFSA or RRSP Into $50,000

Are you looking to convert a $500 TFSA into $50,000? A little discipline and patience can help you achieve it.…

Read more »

Pot stocks are a riskier investment
Cannabis Stocks

5 Things to Know About Cannabis Stocks Before 2023

Cannabis stocks like Canopy Growth (TSX:WEED) are struggling, but there are positives to draw on as well.

Read more »

Stocks for Beginners

3 Best-in-Class Stocks to Build Long-Term Wealth

Looking for stocks that might create generational wealth over the long term? Here's a top growth, value, and income stock…

Read more »

TFSA and coins
Dividend Stocks

TFSA Couples: How to Invest for $777 of Passive Income Each Month

The TFSA or Tax-Free Savings Account can be used to buy and hold a portfolio of blue chip dividend stocks…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Investing in the Stock Market Could Turn Your $1,000 Into $100,000: Here’s How

The stock market can convert a $1,000 regular investment into $100,000 without making too risky bets. Here’s a simple strategy…

Read more »

Bank Stocks

3 Top Stocks to Buy Now in a Once-in-a-Decade Opportunity

Given their discounted stock prices, these three quality stocks offer a once-in-a-decade buying opportunity.

Read more »

Various Canadian dollars in gray pants pocket
Stocks for Beginners

Here’s an Absolutely Brilliant Way to Earn Passive Income

Here’s a simple and unique way to earn passive income that does not involve working more, buying a property, or…

Read more »

Make a choice, path to success, sign
Stocks for Beginners

Canadian Investors: 2 Once-in-a-Generation Buying Opportunities

You can grab these two once-in-a-generation buying opportunities in Canada right now to get super rich in the long term.

Read more »