Volatility in May has inspired investors to flee into safe havens as we look ahead to the summer. Gold and silver have been left out the cold as the U.S. dollar, bonds, and even cryptocurrencies have emerged as favoured targets. Instead of fleeing equities, today we will look at three stocks that provide generous monthly income. Investors who are taking profits right now should consider reinvesting in these dividend beasts in June.
ARC Resources (TSX: ARX)
ARC Resources is a Calgary-based energy company, namely oil and natural gas. Shares of ARC Resources have dropped 5.4% in 2019 as of close on May 30. Energy stocks have encountered severe turbulence in late April and early May, with oil prices plummeting in the face of global pressures.
The company released its first-quarter 2019 results on April 30. ARC Resources achieved record quarterly production of 139,054 barrels of oil equivalent per day in Q1 2019, up 2% from the fourth quarter of 2018. ARC Resources boasts a strong balance sheet with a net debt balance of $796.3 million and a net debt to annualized funds from operations of 1:1 as at March 31, 2019.
On May 15, ARC Resources confirmed a monthly dividend of $0.05 per share, representing a tasty 7.8% yield. The stock has a forward P/E of 18, putting it at great value relative to its industry as we head into June.
Chemtrade Logistics (TSX: CHE.UN)
Chemtrade Logistics is a Toronto-based company that provides industrial chemicals and services to customers in North America and worldwide. Shares have dropped 12% in 2019 as of close on May 30. The stock has plunged 42% from the prior year.
Chemtrade stock did receive a bump after releasing its first-quarter 2019 results on May 8. Revenue increased $3.8 million from Q1 2018 to $385.3 million in the quarter, which was largely due to higher selling prices for sulphuric acid in the Sulphur Products and Performance Chemicals segment, as well as higher selling prices for specific water chemical products. Adjusted EBITDA rose to $84 million compared to $72 million in the prior year.
In late May Chemtrade announced a monthly distribution of $0.10 per share, which represents a monster 13% yield.
Cineplex (TSX: CGX)
Cineplex owns and operates movie theatres across Canada. Earlier this month I explained why I liked Cineplex even after a rough first quarter 2019 earnings report. Traditional cinemas are facing big challenges amid an evolving media environment. Cineplex was victim to broader headwinds in the first quarter as attendance and revenue dipped sharply in January and February.
There are very positive signs going forward in 2019 for Cineplex. The movie slate has dramatically improved in March, April, and May, and there are several promising releases for the rest of the year, which should boost attendance and revenues for North American cinemas in the remaining three quarters.
Cineplex stock is hovering dangerously close to 52-week lows as of close on May 30. Its forward P/E of 35 suggests that it does not boast great value, but investors are getting attractive income with this stock. Cineplex bumped up its monthly distribution to $0.15 in its first-quarter report, which represents an attractive 7.3% yield.
