Income investments are often used by retirees to provide income to pay living expenses. Most bills are paid on a monthly basis, yet most dividend stocks pay quarterly. Wouldn't it be wonderful to find high-quality, high-yielding income stocks that paid out monthly, to better match monthly expenses, or to compound dividend reinvestment faster? Luckily for income investors there are many such companies, and this article points out two -- both oil and gas producers. Each company has a long history of delivering high and consistently growing income to patient long-term investors, and each has strong growth catalysts for continued dividend/distribution growth going forward.
Baytex Energy (NYSE:BTE) is a Canadian exploration and production company that operates in Western Canada, including the famous Alberta tar sands, which hold the third largest oil reserves in the world.
The scope and magnitude of the tar sands is truly impressive. At 169 billion barrels of proven oil reserves (recoverable with today's technology), western Canada is behind only Saudi Arabia (265 billion barrels) and Venezuela (211 billion barrels) in total oil reserves (13% of global reserves). Long-term investors should keep two facts in mind:
- Only 15% of this 169 billion barrels of oil is currently being developed.
- The projected total amount of oil contained within the tar sands is 1.8 trillion barrels, nearly four times as much as Saudi Arabia and Venezuela combined.
- Future technology may greatly increase recoverable reserves, making Canada the world's leading supplier of oil.
Monthly income-seeking investors can find several great companies in the energy sector that help meet their goals, and Baytex Energy and Vanguard Natural Resources are two excellent options. Both companies have strong records of growth in terms of production, profits, and dividends/distributions. Both are investing heavily in North America's energy renaissance, and both are likely to continue to deliver superior, market-smashing total returns for years to come.
Adam Galas has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.