monthly dividend

AltaGas Ltd., $33.50, symbol ALA on Toronto (Shares outstanding: 144.7 million; Market cap: $4.9 billion; www.altagas.ca), processes, transmits, stores and markets natural gas for producers; generates power from gas-fired, coal-fired, wind, biomass and hydroelectric plants; and operates natural gas utilities. In the three months ended June 30, 2015, AltaGas’s cash flow per share dropped 41.9%, to $0.50 from $0.86 a year earlier. Revenue fell 11.7%, to $416.0 million from $471.0 million. The declines mostly came from increased maintenance costs at its 33%-owned Petrogas liquids-storage business. In September 2015, the company agreed to buy three gas-fired power plants in northern California for $642 million U.S. These facilities have long-term contracts to sell their power to Pacific Gas & Electric, which cuts their risk. The purchase should increase AltaGas’s annual cash flow per share by 5%....

Junior energy stock Twin Butte energy has kept its cash flow up with hedging strategies, but its high-yielding dividend may be in doubt.

Chorus Aviation, $5.61, symbol CHR.B on Toronto (Shares outstanding: 114.6 million; Market cap: $685.4 million; www.flyjazz.ca), formerly known as Jazz Air Income Fund, is Air Canada’s main regional affiliate. Chorus owns Jazz Air, Canada’s largest regional airline and second-biggest airline overall, based on the number of planes it operates and routes it flies. Jazz Air and Air Canada have a capacity purchase agreement (CPA) under which Air Canada buys almost all of Jazz’s seats based on predetermined rates. The company’s current CPA with Air Canada provides the stable long-term cash flow it needs to maintain its monthly dividend and buy new aircraft....

Focused on the Bakken oil development, Crescent Point Energy is a stock we believe has strong growth potential when oil prices recover

With both the price of gold and its share price declining, our outlook on senior mining stock Goldcorp as it pushes ahead with new projects.

Goldcorp, $16.78, symbol G on Toronto (Shares outstanding: 830.0 million; Market cap: $13.9 billion; www.goldcorp.com), is a senior gold producer that also mines silver and base metals. Goldcorp’s mines (wholly owned and jointly held) include Red Lake and two others in Canada; Penasquito and two more in Mexico; Marlin in Guatemala; Wharf in the U.S.; and Pueblo Viejo in the Dominican Republic. In addition, the company is developing eight other projects in four countries. In 2014, Goldcorp produced 2.78 million ounces of gold and 36.8 million ounces of silver. It expects to produce 3.3 million to 3.6 million ounces of gold this year....

Exchange Income Corp., $24.18, symbol EIF on Toronto (Shares outstanding: 23.2 million; Market cap: $560.9 million; www.exchangeincomecorp.ca), operates in two main areas: aviation and manufacturing. The aviation business (77% of revenue) includes regional airlines Perimeter Aviation, Keewatin Air, Calm Air International, Bearskin Lake Air Service, Custom Helicopters and Regional One. These airlines serve communities in Manitoba, Ontario and Nunavut. The manufacturing business (23% of revenue) includes WesTower Communications Canada (a maker and installer of wireless communication towers), Jasper Tank, Overlanders Manufacturing, Water Blast Manufacturing and Stainless Fabrication....

PENGROWTH ENERGY CORP., $1.58, Toronto symbol PGF, continues to cut costs as low oil and natural gas prices hurt its earnings and cash flow. This week, the company said it would pay its final monthly dividend of $0.02 a share on September 15, 2015. It will then shift to a quarterly payout of $0.01 a share starting in December 2015. The new annual rate of $0.04 a share, down 83.3% from $0.24, yields 2.5%. Pengrowth will also suspend its dividend reinvestment plan with the December 2015 payment. Participants will then receive their dividends in cash until the company reinstates the plan....

Twin Butte Energy, $0.39, symbol TBE on Toronto (Shares outstanding: 353.4 million; Market cap: $122.1 million; www.twinbutteenergy.com), produces oil and gas in Western Canada, with a focus on the greater Lloydminster area, along the Alberta/Saskatchewan border. Its output is 88% oil and 12% gas. In the three months ended June 30, 2015, Twin Butte produced 17,351 barrels of oil equivalent a day, down 17.8% from 21,109 barrels a year earlier. But even with the lower output and falling oil and gas prices, Twin Butte’s cash flow rose 17.4%, to $57.0 million, or $0.16 a share, from $48.5 million, or $0.14. That’s because it realized a $25.3-million gain on its hedging strategy: for the second half of 2015, it has hedged about 6,000 barrels a day at $80 U.S. (compared to today’s market price of $42), and in 2016, it has hedged 1,000 barrels a day at $65....

H&R REIT builds with takeovers, Canadian REIT builds from within, and we like both for their strong dividend yields and sound prospects.