The energy sector enjoyed a slight rebound on July 30 ahead of a big United States Federal Reserve rate decision to be held today.
A rate cut should boost investor confidence, and U.S.-China trade talks that have ramped up again. Any movement on this file should provide a boost for oil and gas, which are suffering due to concerns over plunging global demand.
Today, I want to take a snapshot of two energy stocks that offer monster dividends. Income investors should consider adding these at a discount this summer.
Vermilion Energy (TSX:VET)(NYSE:VET) is an oil and gas producing company. A French refinery outage took a bite out of the company’s second-quarter results and production was down by roughly 400 boe/d from the prior quarter.
Shares have plunged 31% over the past three months as of close on July 30. The stock had an RSI of 20 at the time of this writing, putting it well into technically oversold territory.
Vermilion stock offers a monthly dividend of $0.23 per share which represents a beastly 12% yield.
Arc Resources (TSX:ARX) stock has dropped 23.6% over the past three months. Shares are still trading at the low end of its 52-week range.
Arc Resources narrowly avoided dropping into technically oversold territory late this month, but I still like the stock as a buy-low candidate. It offers a monthly dividend of $0.05 per share. This represents a tasty 9.4% yield.
