3 Hot Dividend Stocks That Pay You Monthly

Investors no longer have to wait three months between dividend checks thanks to Vanguard Natural Resources, BreitBurn Energy Partners, and Enerplus.

Matthew DiLallo
Matthew DiLallo
Jul 18, 2014 at 11:45AM
Energy, Materials, and Utilities

Source: Enerplus 

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 (OTC:VNRSQ), BreitBurn Energy Partners (OTC:BBEPQ), 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.