The S&P/TSX Composite Index fell 49 points on May 28. Global markets have encountered turbulence in May, which should inspire investors to limit risk as we approach the halfway point of 2019. One strategy is to take profits in growth vehicles and reinvest in high-yield income equities.
Vermillion Energy (TSX:VET)(NYSE:VET) is a great option for investors who are hungry for a monthly pay day. Vermillion is a Calgary-based oil and gas producing company. Shares have climbed 3.5% in 2019 as of close on May 28, but the stock has dropped 15% over the past month. The energy sector has been hit with volatility in recent weeks.
The company released its first quarter 2019 results on April 25. Production rose 2% year-over-year to 103,404 barrels of oil equivalent per day, with Australia boasting a 40% increase from the prior year.
Funds flow from operations (FFO) increased 14% from Q1 2018 to $254 million or $1.66 per share. Net earnings rose to $39.5 million or $0.26 per share over $24.7 million or $0.20 per share last year.
Earlier in April, Vermillion announced a cash dividend of $0.23 per share. Vermillion pays out this dividend on a monthly basis. This represents a tasty 9.2% yield.
Vermillion also comes at a nice price in late May as the stock is trading at the low end of its 52-week range. Its P/E TTM of 15 puts it in nice value territory relative to its industry, and the stock had an RSI of 34 as of close on May 28. This puts it just outside of technically oversold territory.
