3 Stocks Yielding Up to 9.5% That Pay You Monthly

Turbulent market conditions have returned and investors should consider gobbling up monthly income with stocks like Vermillion Energy Inc. (TSX:VET)(NYSE:VET).

| More on:
Dad and son having fun outdoor. Healthy living concept

Image source: Getty Images

The S&P/TSX Composite Index plunged 162 points on May 23, the worst trading day of the year for the TSX, which has suffered from multiple triple-digit declines in a turbulent month of May. U.S. indexes also finished the day in the red as fears of blowback from the US-China trade war have rattled global markets.

In the face of such volatility now is as good a time as any for investors to consider reorienting their portfolios to income-generating equities.   Today we are going to look at three stocks that provide monthly dividends.

Vermillion Energy (TSX:VET)(NYSE:VET)

Vermillion Energy is a Calgary-based oil and gas producer, whose shares dropped 3.64% in a brutal day for energy stocks on May 23. The stock has plunged 21.2% over the past month. However, the stock is still in the positive for the year so far. Global trade concerns have oil prices reeling, which has hurt energy stocks, but this could provide a great opportunity to add some of these equities at a discount.

In the first quarter, Vermillion posted a 2% year-over-year increase in production to 103,404 barrels of oil equivalent per day. Funds flow from operations (FFO) climbed 14% to $254 million largely due to higher production and improved oil and gas prices. The company saw the biggest bump in production in Australia, due to the contribution of the 2.0 net well program completed in January 2019.

On May 15, Vermillion announced a monthly distribution of $0.23 per share, representing a monster 9.5% yield. Shares are now trading close to 52-week lows, and the stock hit an RSI of 25, putting it in technically oversold territory. Income investors should target this discounted dividend beast.

Altagas (TSX:ALA)

Altagas is a Calgary-based company that operates a diversified basket of energy infrastructure businesses. Unsurprisingly, shares dipped 2.01% on May 23 as the energy sector was throttled. The stock has still climbed 37% in 2019 so far.

Altagas reported a strong first-quarter 2019 as net income soared to $809 million, or $2.93 per share compared to $49 million or $0.28 per share in the prior year. It reiterated its business outlook for the full year, forecasting normalized EBITDA in the range of $1.2 billion to $1.3 billion. Normalized EBITDA hit $466 million in Q1 2019 compared to $223 million in Q1 2018.

In April, Altagas announced a monthly dividend of $0.08 per share, representing a 5% yield. This is a big downgrade from its previously high yield, but shareholders will not be complaining after the growth it has posted in 2019 so far.

Cineplex (TSX:CGX)

Cineplex operates an extensive chain of movie theatres across Canada. Shares have dropped 2% in 2019 as of close on May 23. The stock is down 15.5% from the prior year. Cineplex took another hit after the release of its first-quarter 2019 results, but patient investors may be rewarded if they choose to dip in this month.

As expected, a historically weak January and February led to a significant drop in revenue and attendance. Total revenues fell 6.6% year over year and theatre attendance plunged 15.6%. However, cinemas will benefit from the monster second-quarter performance of Avengers: Endgame, which was released in late April. As of the morning of May 24, the film has raked in nearly $780 million in the domestic box office. This is second only to the domestic performance Star Wars: The Force Awakens.

Cineplex still bumped up its monthly dividend to $0.15 per share in its first-quarter report, representing a tasty 7.2% yield. Shares are currently trading at the low end of its 52-week range. Cineplex looks like a cheap add as it is well-positioned to post improved earnings as the year goes on.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. Altagas is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

young woman celebrating a victory while working with mobile phone in the office
Dividend Stocks

3 CRA Benefits Most Canadians Can Grab in 2024

You can save on taxes by claiming the dividend tax credit on Fortis Inc (TSX:FTS) shares.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »