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First Brexit… then Trump… Now, it’s time for Pro

Is your portfolio really prepared for what’s coming next?

To help investors like you navigate this historically uncertain — yet high-flying — market and prepare for an inevitable downturn, we’re re-opening our Motley Fool Pro Canada service to a select few new members for a short time.

To discover how Pro Canada could help you to increase your upside potential… reduce your downside risk… and earn paycheque-like income in the process, simply click here — before the small number of spots we have left are all gone!

3 Top Energy Stocks With Yields of 3-4%

As a dividend investor, I’m always on the lookout for high-quality stocks that can boost my portfolio’s returns and, after a recent search of the energy sector, I came across three great opportunities. Let’s take a quick look at each, so you can determine if you should invest in one of them today.

1. Canadian Utilities Limited

Canadian Utilities Limited (TSX:CU) is a diversified global corporation with operations in the following four industries:

  • Electricity: electricity generation, transmission, and distribution
  • Pipelines & Liquids: natural gas transmission, distribution, and infrastructure development, energy storage, and industrial water solutions
  • Retail Energy: electricity and natural gas sales
  • Structures & Logistics: workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management

It pays a quarterly dividend of $0.325 per share, or $1.30 per share annually, giving its stock a yield of about 3.4% at current levels.

Investors must also note that Canadian Utilities’s 10.2% dividend hike in January has it on pace for 2016 to mark the 44th consecutive year in which it has raised its annual dividend payment, tying it with Fortis Inc. for the longest active streak for a public corporation in Canada.

2. Hydro One Ltd.

Hydro One Ltd. (TSX:H) is Ontario’s largest electric transmission and distribution company. It delivers electricity to more than 1.3 million customers across the province and to industrial customers and municipal utilities.

It pays a quarterly dividend of $0.21 per share, or $0.84 per share annually, giving its stock a yield of about 3.2% at current levels.

Investors must also make the following two notes.

First, Hydro One completed its IPO in November of last year, and it declared its first quarterly dividend in February of this year.

Second, it has a target dividend-payout range of 70-80% of its net earnings.

3. Peyto Exploration & Development Corp.

Peyto Exploration & Development Corp. (TSX:PEY) is one of the largest explorers and producers of unconventional natural gas in Alberta’s Deep Basin. Its assets include 440,000 net acres of land, nine operated gas plants, and 1,600 kilometres of pipeline.

It pays a monthly dividend of $0.11 per share, or $1.32 per share annually, giving its stock a yield of about 3.8% at current levels.

Investors must also note that Peyto has raised its annual dividend payment for three consecutive years, and its ample amount of funds from operations could allow it to continue this streak in 2016 by announcing a slight hike before the end of the year.

4. And here's a fourth stock pick for good luck

Renewable energy is predicted to be the largest source of electricity growth over the next five years. A trend like that is simply too hard for us Fools to ignore. Luckily, we've identified 1 Top Renewable Energy Stock for 2016 - And Beyond that we think Canadian investors should take a much closer look at. If you'd like our full analyst report sent directly to your inbox FOR FREE, then click here right now..."

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

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

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