In this article, we will be taking a look at 10 energy monthly dividend stocks.
The years 2020 and 2021 have been extremely challenging and transformational for the global community. As far as the economy is concerned, it would be an understatement to comment that it was negatively impacted by the rise of the pandemic. According to the United Nations Conference on Trade and Development (UNCTAD), for instance, the global economy stands to lose more than $4 trillion because of the impact of the pandemic on the tourism industry alone. If that is what we stand to lose because of hard hits on one portion of the economy, suffice it to say that the overall economic impact of the pandemic is not something one can take lightly.
While the economy has been negatively impacted thus by the pandemic, and no industry has been spared in its wake, it is still true that some industries are managing to get back on their feet faster than others. At the same time, these industries are going through transformations the likes of which we had not seen before. One such example is the global energy industry, which has not only managed to cling on to relevancy in investor circles but has also undergone massive shifts and changes as more people begin to gravitate towards renewable energy.
For instance, Bloomberg has reported that as of August 2021, about $174 billion has been poured into renewable energy alone, signifying an increase in investments in the sector of about 1.8% year over year. As more people begin to commit to the fight against climate change, investments in the energy sector also began racking up with money raised on public markets in the first half of 2021 alone reaching about $28.2 billion. Additionally, as far as investment in individual sectors goes, investments in solar have been up 9% in the first half of this year, reaching a record value of $78.9 billion. As such, with the progression of 2021, we have seen the rising popularity of non-conventional, renewable energy stocks like First Solar, Inc. (NASDAQ: FSLR), alongside other energy stocks in general, such as NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), and ConocoPhillips (NYSE: COP).
While the energy industry is continuing to undergo these shifts and changes, investors are also beginning to return to dividend investing as a viable strategy. Given the fact that dividend stocks have been prone to greatly influence the total return of the S&P 500 especially during bearish markets, these stocks have managed to crawl back into investor portfolios as long-term favorites. According to Post Oak Private Wealth Advisors, the above is proven by the fact that during bear markets, dividends have contributed about 90% to the S&P 500’s total return between 1900 and 2000. Just in general as well, during this same time period dividends contributed to 5.5% of the average annual total return for the S&P 500 while price appreciation contributed about 4.9% of the same. Resultantly, dividend stocks have managed to stick around and become investor favorites even, or perhaps especially, during the pandemic. Hence, we have compiled a list of energy monthly dividend stocks to be found below.
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Let’s now look at the 10 energy monthly dividend stocks.
Our Methodology
We have selected stocks with mostly high dividend yields, going as far up as over 8%, and only as low as over 2%. The stocks have been ranked from the lowest to the highest dividend yield, and their hedge fund holders have also been mentioned below. We took care to include stocks with mostly positive analysts’ ratings and strong fundamentals as well.
Energy Stocks that Pay Monthly Dividends
10. Inter Pipeline Ltd. (OTC: IPPLF)
Number of Hedge Fund Holders: N/A
Dividend Yield: 2.5%
Inter Pipeline Ltd. (OTC: IPPLF), a petroleum transporting and storage and natural gas liquids processing business operating in Canada and Europe ranks 10th on our list of energy monthly dividend stocks. The company operates through its Oil Sands Transportation, Conventional Oil Pipelines, NGL Processing, and Bulk Liquid Storage segments.
RBC Capital’s Robert Kwan this July raised the price target on shares of Inter Pipeline Ltd. (OTC: IPPLF) to $15.94. The analyst also holds a Sector Perform rating on the stock, while National Bank holds a Tender rating on Inter Pipeline Ltd. (OTC: IPPLF) shares as of this August.
In the second quarter of 2021, Inter Pipeline Ltd. (OTC: IPPLF) had an EPS of $0.27, and the company’s revenue was $566.97 million, up 30.3% year over year, beating the previous quarter’s revenue of $554.73 million. Inter Pipeline Ltd. (OTC: IPPLF) has also gained 50.52% in the past 6 months and 71.63% year to date.
Like NextEra Energy, Inc. (NYSE: NEE), First Solar, Inc. (NASDAQ: FSLR), Chevron Corporation (NYSE: CVX), and ConocoPhillips (NYSE: COP), Inter Pipeline Ltd. (OTC: IPPLF) is a good stock to invest in.
9. TransAlta Renewables Inc. (OTC: TRSWF)
Number of Hedge Fund Holders: N/A
Dividend Yield: 4.3%
TransAlta Renewables Inc. (OTC: TRSWF) is a developer and operator of renewable power generation facilities and owned about 23 wind facilities, 13 hydroelectric facilities, 7 natural gas generation facilities, 1 solar facility, 1 natural gas pipeline, and 1 battery storage facility as of this March. The company ranks 9th on our list of energy monthly dividend stocks.
CIBC analyst Mark Jarvi just this July raised his price target on shares of TransAlta Renewables Inc. (OTC: TRSWF) to $16.74. Jarvi also holds a Neutral rating on the company’s shares.
In the first quarter of 2021, TransAlta Renewables Inc. (OTC: TRSWF) had an EPS of $0.15. The company’s revenue was $100.25 million, up 14.5% year over year and beating the previous quarter’s revenue of $99.81 million. TransAlta Renewables Inc. (OTC: TRSWF) has also gained 5.34% in the past 6 months and 0.87% year to date.
Like NextEra Energy, Inc. (NYSE: NEE), First Solar, Inc. (NASDAQ: FSLR), Chevron Corporation (NYSE: CVX), and ConocoPhillips (NYSE: COP), TransAlta Renewables Inc. (OTC: TRSWF) is a good stock to invest in.
8. Permian Basin Royalty Trust (NYSE: PBT)
Number of Hedge Fund Holders: 3
Dividend Yield: 4.5%
Permian Basin Royalty Trust (NYSE: PBT) is an express trust holding overriding royalty interests in oil and gas properties across the US. The company ranks 8th on our list of energy monthly dividend stocks and based in Dallas, Texas.
According to the Wall Street Journal, currently the consensus analyst rating on shares of Permian Basin Royalty Trust (NYSE: PBT) is Hold.
In the first quarter of 2021, Permian Basin Royalty Trust (NYSE: PBT) had a revenue of $2.13 million, beating the previous quarter’s $1.98 million revenue. Permian Basin Royalty Trust (NYSE: PBT) has also gained 36.01% in the past 6 months and 53.51% year to date.
By the end of the first quarter of 2021, 3 hedge funds out of the 866 tracked by Insider Monkey held stakes in Permian Basin Royalty Trust (NYSE: PBT) worth roughly $1.46 million. This is compared to 2 hedge funds in the previous quarter with a total stake value of approximately $1.33 million.
Like NextEra Energy, Inc. (NYSE: NEE), First Solar, Inc. (NASDAQ: FSLR), Chevron Corporation (NYSE: CVX), and ConocoPhillips (NYSE: COP), Permian Basin Royalty Trust (NYSE: PBT) is a good stock to invest in.
7. Superior Plus Corp. (OTC: SUUIF)
Number of Hedge Fund Holders: N/A
Dividend Yield: 4.7%
Superior Plus Corp. (OTC: SUUIF) operates in the energy distribution and specialty chemicals businesses in Canada, the US, and Chile. The company ranks 7th on our list of energy monthly dividend stocks and has three segments, namely the Canadian Propane Distribution, US Propane Distribution, and Specialty Chemicals segments.
This July, TD Securities, Scotiabank, Raymond James, and Desjardins all raised their price targets on shares of Superior Plus Corp. (OTC: SUUIF). TD Securities analyst Daryl Young raised his target to $13.95, like Desjardins analyst David Newman. At the same time, Raymond James’ Steve Hansen raised his price target to $13.75, while Scotiabank’s Ben Isaacson’s new target is $12.75.
In the first quarter of 2021, Superior Plus Corp. (OTC: SUUIF) had an EPS of $0.29. The company’s revenue was $667.96 million, up 23% year over year and higher than the previous quarter’s revenue of $553.20 million. Superior Plus Corp. (OTC: SUUIF) has also gained 23.10% in the past 6 months and 29.76% year to date.
Like NextEra Energy, Inc. (NYSE: NEE), First Solar, Inc. (NASDAQ: FSLR), Chevron Corporation (NYSE: CVX), and ConocoPhillips (NYSE: COP), Superior Plus Corp. (OTC: SUUIF) is a good stock to invest in.
6. Mesa Royalty Trust (NYSE: MTR)
Number of Hedge Fund Holders: N/A
Dividend Yield: 4.88%
Mesa Royalty Trust (NYSE: MTR) is an energy company based in Houston, Texas, and owns net overriding royalty interests in oil and gas producing properties within America. The company ranks 6th on our list of energy monthly dividend stocks.
In the quarter of 2021, Mesa Royalty Trust (NYSE: MTR) had a revenue of over $36,000. Mesa Royalty Trust (NYSE: MTR) has also gained 14.09% in the past 6 months and 43.1% year to date.
Like NextEra Energy, Inc. (NYSE: NEE), First Solar, Inc. (NASDAQ: FSLR), Chevron Corporation (NYSE: CVX), and ConocoPhillips (NYSE: COP), Mesa Royalty Trust (NYSE: MTR) is a good stock to invest in.
5. Pembina Pipeline Corporation (NYSE: PBA)
Number of Hedge Fund Holders: 15
Dividend Yield: 6%
Pembina Pipeline Corporation (NYSE: PBA) is a provider of transportation and midstream services in the energy industry, and ranks 5th on our list of energy monthly dividend stocks. The company is based in Calgary, Canada.
Ben Pham, an analyst at BMO Capital, resumed coverage of shares of Pembina Pipeline Corporation (NYSE: PBA) this July. The analyst hold a Market Perform rating on the stock, alongside a price target of $32.70, up from the previous price target of $31.11.
In the second quarter of 2021, Pembina Pipeline Corporation (NYSE: PBA) had an EPS of $0.37, missing estimates by $0.07. The company’s revenue was $1.56 billion, up 63.99% year over year and beating estimates by $361.48 million. Pembina Pipeline Corporation (NYSE: PBA) has also gained 15.45% in the past 6 months and 33.88% year to date.
By the end of the first quarter of 2021, 15 hedge funds out of the 866 tracked by Insider Monkey held stakes in Pembina Pipeline Corporation (NYSE: PBA) worth roughly $74.9 million. This is compared to 13 hedge funds in the previous quarter with a total stake value of approximately $61.7 million.
4. Sabine Royalty Trust (NYSE: SBR)
Number of Hedge Fund Holders: 5
Dividend Yield: 6.1%
Sabine Royalty Trust (NYSE: SBR) based in Dallas, Texas, is an energy company operating in the oil and gas exploration and production sector. The company ranks 4th on our list of energy monthly dividend stocks and holds royalty and mineral interests in oil and gas producing properties in the US.
In the first quarter of 2021, Sabine Royalty Trust (NYSE: SBR) had a revenue of $9.74 million, beating the previous quarter’s revenue of $6.86 million. Sabine Royalty Trust (NYSE: SBR) has also gained 19.81% in the past 6 months and 36.34% year to date.
By the end of the first quarter of 2021, 5 hedge funds out of the 866 tracked by Insider Monkey held stakes in Sabine Royalty Trust (NYSE: SBR) worth roughly $13.5 million. This is compared to 4 hedge funds in the previous quarter with a total stake value of approximately $12.8 million.
3. PermRock Royalty Trust (NYSE: PRT)
Number of Hedge Fund Holders: N/A
Dividend Yield: 6.1%
PermRock Royalty Trust (NYSE: PRT) is a fund holding 80% net profits interest in Boaz Energy II, LLC’s oil and natural gas production properties located within the Permian Basin in Texas. The company is itself based in Fort Worth Texas and ranks 3rd on our list of energy monthly dividend stocks.
According to the Wall Street Journal, the current consensus rating on shares of PermRock Royalty Trust (NYSE: PRT) is Hold.
PermRock Royalty Trust (NYSE: PRT) has about $76.52 million in assets under management. The company’s price return in the past year was up 212.94% versus the S&P 500’s 32.47% gain, while its total return during the same time period was up 236.96%, versus the S&P 500’s total return gain of about 10.4%. PermRock Royalty Trust (NYSE: PRT) has also gained 68.65% in the past 6 months and 144.71% year to date.
2. Cross Timbers Royalty Trust (NYSE: CRT)
Number of Hedge Fund Holders: N/A
Dividend Yield: 7%
Cross Timbers Royalty Trust (NYSE: CRT), an energy company operating in the oil and gas exploration and production sector and an American express trust based in Dallas, Texas, is next on our list of energy monthly dividend stocks. The company holds about 90% of the net profits interests in a range of properties in Texas, Oklahoma, and New Mexico, and ranks 2nd on our list.
In the first quarter of 2021, Cross Timbers Royalty Trust (NYSE: CRT) had a revenue of $1.36 million, beating the previous quarter’s $1.20 million revenue. Cross Timbers Royalty Trust (NYSE: CRT) has gained 43.03% in the past 6 months and 42.68% year to date.
1. San Juan Basin Royalty Trust (NYSE: SJT)
Number of Hedge Fund Holders: 2
Dividend Yield: 8.4%
San Juan Basin Royalty Trust (NYSE: SJT) is a Texas-based energy company ranking 1st on our list of energy monthly dividend stocks. The company owns a 75% net overriding royalty interest in Southland’s oil and natural gas interests in the San Juan Basin.
In the first quarter of 2021, San Juan Basin Royalty Trust (NYSE: SJT) had a revenue of $8.21 million, up 42.08% year over year and beating the previous quarter’s revenue of $2.81 million by a large margin. San Juan Basin Royalty Trust (NYSE: SJT) has also gained 41.53% in the past 6 months and 91.14% year to date.
By the end of the first quarter of 2021, 2 hedge funds out of the 866 tracked by Insider Monkey held stakes in San Juan Basin Royalty Trust (NYSE: SJT) worth roughly $471,000. This is compared to 2 hedge funds in the previous quarter with a total stake value of approximately $297,000.
See also 10 Best Solar Energy Stocks To Buy Now and 11 Best Clean Energy Stocks To Buy.
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Disclosure: None. 10 Energy Stocks that Pay Monthly Dividends is originally published on Insider Monkey.
