Volatility has ruled in the late spring this year, which was one of the reasons I’d suggested investors consider stashing income-generating equities last month. Central banks have worked to reassure investors, and right on cue, the markets have responded favourably. Today, we are going to stake a conservative position and focus on three stocks that offer monthly dividends.
Inter Pipeline (TSX:IPL) is a Calgary-based company that operates in the oil and gas sector. Shares had climbed 5% in 2019 as of close on June 19. Oil plunged into a bear market earlier this month. I’ve discussed why this should be viewed as an opportunity for investors.
Inter Pipeline stock has dropped 3.3% month over month over the course of this broader pullback for energy stocks. Still, shares had a P/E TTM of 14.5 as of this writing, which puts Inter Pipeline at nice value in comparison to industry peers. Last week, the stock fell into technically oversold territory, and as of this writing it had an RSI of 43. Shares are still near its 52-week low, which presents a solid window to add at a potential bargain.
The stock last paid out a monthly dividend of $0.1425 per share. This represents a tasty 8.4% yield as of this writing.
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ARC Resources (TSX:ARX) is yet another oil and gas company based in Calgary. Shares have plunged 17% over the past month as of close on June 19. This rough period put the stock into negative territory for the year. The stock hit a 52-week low of $6.56 on June 14.
In the first quarter, ARC Resources saw its average daily production rise 2% from the prior quarter to 139,054 barrels of oil equivalent per day. The company finished the quarter with a strong balance sheet. Most of the production associated with ongoing infrastructure projects will come to fruition in 2020 and 2021. Shares had an RSI of 32 as of this writing, which puts it just outside technically oversold territory.
ARC Resources last confirmed a monthly dividend of $0.05 per share. This represents an attractive 8.8% yield as of close on June 19.
Vermilion Energy (TSX:VET)(NYSE:VET) is our third and final oil- and gas-producing company that I will cover today. Shares of Vermilion have plunged 10% month over month as of close on June 19 due to downward pressure in the sector. This pushed the stock into the red for 2019.
Production in the first quarter rose 2% from the fourth quarter of 2018 to 103,404 barrels of oil equivalent per day. Funds flow from operations (FFO) jumped 14% to $254 million or $1.66 per share. Petroleum and natural gas sales surged to $481 million compared to $318 million in Q1 2018.
Vermilion’s P/E TTM of 14.1 puts it in terrific company value-wise relative to industry peers. Shares had an RSI of 38 as of close on June 19, which puts it just outside technically oversold territory. The company last announced a monthly dividend of $0.23 per share, which represents a monster 9.9% yield as of this writing.
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.