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..."


Let’s not beat around the bush – energy companies performed miserably in 2015. Yet, even though the carnage was widespread, not all energy-related businesses were equally affected.

We've identified an energy company we think offers one of the best growth opportunities around. While this company is largely tied to the production of natural gas, it doesn't actually produce the gas. Instead, it provides the equipment required to get natural gas from the ground to the end user. With diversified operations around the globe, we think it's a rare find in the industry.

We like it so much, we’ve named it as 1 Top Stock for 2016 and Beyond. To find out why, simply enter your email address below to claim your FREE copy of this brand new report, "1 Top Stock for 2016 and Beyond"!

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