3 Ways to Invest in the North American Energy Revolution Today

Looking for a way to profit from the North American energy revolution? If so, Suncor Energy Inc. (TSX:SU)(NYSE:SU), Keyera Corp. (TSX:KEY), and Canyon Services Group Inc. (TSX:FRC) are three of your best options.

| More on:
The Motley Fool

With the North American energy revolution in full swing, savvy investors are constantly on the lookout for ways to profit from it. In order to simplify this process, I have compiled a list of three companies who operate in different industries within the sector, so let’s take a closer look at each to determine which would fit best in your portfolio.

1. Suncor Energy Inc.: Oil Sands

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is one of the largest integrated energy companies in North America. It’s focused on developing oil sands in Canada’s Athabasca basin. At today’s levels, its stock trades at 37.8 times fiscal 2015’s estimated earnings per share of $0.91 and 17.4 times fiscal 2016’s estimated earnings per share of $1.97, the latter of which is inexpensive compared with its five-year average price-to-earnings multiple of 19. In addition, the company pays a quarterly dividend of $0.28 per share, or $1.12 per share annually, giving its stock a 3.25% yield at current levels.

2. Keyera Corp.: Natural Gas

Keyera Corp. (TSX:KEY) is one of the largest independent natural gas and natural gas midstream companies in western Canada. At current levels, its stock trades at 26.8 times fiscal 2015’s estimated earnings per share of $1.59 and 22.6 times fiscal 2016’s estimated earnings per share of $1.88, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 28.3. Additionally, the company pays a monthly dividend of $0.115 per share, or $1.38 per share annually, which gives its stock a 3.2% yield at today’s levels.

3. Canyon Services Group Inc.: Fracking Services

Canyon Services Group Inc. (TSX:FRC) is one of the leading providers of hydraulic fracturing, acidizing, and remedial cementing services to the oil and natural gas industries in Canada. At today’s levels, its stock trades at 27.5 times fiscal 2016’s estimated earnings per share of $0.21, which is inexpensive compared with its five-year average price-to-earnings multiple of 110.5. In addition, the company pays a quarterly dividend of $0.075 per share, or $0.30 per share annually, giving its stock a 5.2% yield at today’s levels.

Which of these energy stocks should you buy today?

Suncor, Keyera, and Canyon Services are three of the best ways to invest in the North American energy revolution today. Foolish investors should take a closer look and strongly consider beginning to scale in to positions in one of them.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »