I love dividends. Let’s just get that out in the open. I am in love with dividends. I feel this way because it is a company’s way of showing me that it values me as a part of the business. When a company doesn’t pay a dividend, it leaves me wondering how seriously it takes our relationship.
In the energy world, there are three companies that reign supreme when it comes to the dividends that they pay. And every single month, these three companies show their love for investors by sending money our way.
Crescent Point Energy Corp.
Crescent Point Energy Corp. (TSX: CPG)(NYSE: CPG) pays out a delicious 7% yield to its investors. That comes out to right around $0.23 per month. Furthermore, Crescent is a historical dividend payer, having done it regularly for the past decade, irrespective of whether the price of oil has gone up or down.
This is part of its business model. The company ensures that it will pay investors a dividend and, in exchange, it issues new stock when it needs more cash. Because investors know that they’ll get a dividend, they buy the shares and that allows the company to operate.
Add this to the fact that Crescent is now pumping out an extra 10,000 barrels of oil a day thanks to its CanEra acquisition from the beginning of the year and I’m really excited about how much these dividends can reap.
Bonterra Energy Corp.
Bonterra Energy Corp. (TSX: BNE) is another company that is right up there with Crescent in the dividend-paying department. Every month, it pays out CAD 0.30, which comes to an estimated 6.5% yield. It has also historically paid dividends regularly and that makes it a good buy.
One thing about Bonterra that I particularly like is its efficiency. Throughout 2012 and 2013, it made a series of acquisitions to increase its production. It then started to drill in the first quarter of 2014. By the second quarter, all of those wells were in production and returning product. That’s really a successful drilling team.
Because it is seeing an increase in the amount of oil it pumps, I anticipate this company will see its price start to rise.
Baytex Energy Corp.
Baytex Energy Corp. (TSX: BTE)(NYSE: BTE) is the last of three amazing dividend oil companies. This is a company that has seen a high of $49.88 and a drop right around $40. Through all this, it has kept its yield at a beautiful 7%. Each month, it pays CAD 0.24.
It has recently completed its acquisition of Aurora Oil and Gas. This move will allow Baytex to expand into Texas in the Eagle Ford Shale region. If plans go accordingly, it will have added thousands of barrels a day. That will increase revenue for the company tremendously.
But aren’t oil companies hurting right now?
Yes, they are, but we are coming up to what is expected to be a very cold winter. As the temperature decreases, the need for oil will increase. And as the holiday season approaches, oil usage will rise even more. That will give these three companies growth and you, the investor, more profit.
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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 Jacob Donnelly has no position in any stocks mentioned.