3 of the Top Monthly Dividend Stocks in the Energy Sector

Looking for a dividend-paying energy stock? If so, Altagas Ltd. (TSX:ALA), Enbridge Income Fund Holdings Inc. (TSX:ENF), and Keyera Corp. (TSX:KEY) are three of the best options.

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If you’re interested in earning monthly dividend income, whether it’s to help pay your bills or to help you beat the market, this article is for you. I scoured the energy sector and compiled a list of three stocks with high yields and track records of raising their annual rates, so let’s take a quick look at each to determine which belongs in your portfolio.

1. Altagas Ltd.

Altagas Ltd. (TSX:ALA) is one of the largest energy infrastructure companies in Canada and the United States with operations in the gas, power, and utilities industries. It currently pays a monthly dividend of $0.165 per share, or $1.98 per share annually, which gives its stock a yield of about 6.5% at today’s levels.

Investors must also note that Altagas has raised its annual dividend payment for five consecutive years, and its recent increases, including its 3.1% hike in October 2015, has it on pace for 2016 to mark the sixth consecutive year with an increase.

2. Enbridge Income Fund Holdings Inc.

Enbridge Income Fund Holdings Inc. (TSX:ENF) owns a diverse portfolio of energy infrastructure assets that are operated by Enbridge Inc., which is one of the leading energy-delivery companies in North America. Enbridge Income Fund currently pays a monthly dividend of $0.1555 per share, or $1.866 per share annually, which gives its stock a yield of about 7.1% at today’s levels.

It is also important for investors to note that Enbridge Income Fund has raised its annual dividend payment for five consecutive years, and its recent increases, including its 10% hike in December 2015, has it on pace for 2016 to mark the sixth consecutive year with an increase.

3. Keyera Corp.

Keyera Corp. (TSX:KEY) is one of the largest energy midstream companies in Canada, providing essential services to oil and gas producers. It currently pays a monthly dividend of $0.125 per share, or $1.50 per share annually, which gives its stock a yield of about 4.3% at today’s levels.

Investors must also note that Keyera has raised its annual dividend payment for five consecutive years, and its recent increases, including its 8.7% hike in August 2015, has it on pace for 2016 to mark the sixth consecutive year with an increase.

Which of these dividend dynamos should you buy?

Altagas, Enbridge Income Fund Holdings, and Keyera are three of the top dividend-paying investment options in the energy sector today. All Foolish investors should take a closer look at each and strongly consider beginning to scale in to long-term positions in 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. Altagas is a recommendation of Stock Advisor Canada.

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