One of the biggest chores for income investors is to balance their dividend cash flows. Because most companies pay quarterly, the cash flow can be quiet lumpy. This sometimes forces an investor to add a dividend stock to their portfolio not based on its merits, but the fact that it pays its dividend during a quarter when cash flow is low. This is a choice that investors no longer need to make thanks to an increase in monthly dividend payers like Vanguard Natural Resources (NASDAQ:VNR), BreitBurn Energy Partners (NASDAQ:BBEP), and Enerplus (NYSE:ERF).
All three companies offer solid monthly income that's backed by oil and gas wells. However, where each company differs is in the strategy that's being used to keep that payout growing. Vanguard Natural Resources, for example, has been buying up cheap natural gas properties to fuel future growth. BreitBurn Energy Partners, on the other hand, has turned its attention to high-margin oil to fuel its payout. Finally, we have Enerplus, which has turned to shale to fuel future growth.
In order to give investors a few more details on these monthly dividend payers, I created the following slideshow. It details why BreitBurn Energy Partners, Vanguard Natural Resources, and Enerplus are great dividends to buy today as well as what will keep these dividends growing in the future.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.
Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends BreitBurn Energy Partners. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.