Energy companies are some of the best dividend payers in the market. With the current average dividend yield of the Dow at 2.52%, here are five Canadian energy companies with a current annual dividend yields above 4%.
1. Pembina Pipeline Corporation
Pembina Pipeline (TSX: PPL)(NYSE: PBA) is the owner/operator of a network of pipelines that transport conventional and synthetic crude oil and natural gas produced in western Canada. The company has recently been active in upgrading its pipeline capacity, which has prompted some analysts to issue upgrades on the stock.
The company currently pays a monthly dividend of $0.145 per share. Pembina declared the $0.145 monthly dividend on May 8 2014; its prior dividend was $0.14. Assuming Pembina maintains the $0.145 dividend through the remainder of the year, and given the current stock price, the dividend yield is 4.39%.
2. Canadian Oil Sands Limited
Canadian Oil Sands (TSX: COS) is a pure investment opportunity in light, sweet crude oil. The company owns a 36.74% interest in the Syncrude project. Canadian Oil Sands has been paying a quarterly dividend of $0.35 per share since the second quarter of 2012 for a dividend yield of 5.8%. The previous dividend was $0.30 per share.
3. Pengrowth Energy Corporation
Pengrowth Energy Corporation (TSX: PGF)(NYSE: PGH) is engaged in the development, production, acquisition, and the exploration for oil and natural gas reserves in Alberta, British Columbia, Saskatchewan. The company currently pays a $0.04 per share monthly dividend, making its dividend yield 6.30%.
4. Crescent Point Energy Corp.
Crescent Point Energy Corp. (TSX: CPG)(NYSE: CPG) is a conventional oil and gas producer with assets in Western Canada and the United States. The company added to its portfolio in mid-June when it completed the acquisition of Saskatchewan Viking oil assets from Polar Star Canadian Oil and Gas Inc. On June 13, when Crescent Point announced that the acquisition closed and boosted its production guidance, the company’s stock climbed to a 52-week high.
Crescent Point Energy has paid a monthly dividend of $0.23 per share since 2009. The dividend yield is 5.94%.
5. Baytex Energy Corp.
Through its subsidiaries, Baytex Energy (TSX: BTE)(NYSE: BTE) acquires, develops, exploits, and holds petroleum and natural gas properties and related assets in North America. The company recently updated its production expectations, thanks to the recent closure of its acquisition of Aurora Oil & Gas.
The purchase of Aurora has expanded Baytex’s land position at Eagle Ford. While overall Baytex continues to expect Q2 production of approximately 60,000 boe/d, including the additional Eagle Ford production for the 20 days following closing of the acquisition, the company expects average production for the quarter will be 66,000 boe/d.
The company just hiked its monthly dividend to $0.24 per share from $0.22 per share. This new dividend is payable July 15. Assuming the monthly dividend of $0.24 holds through year-end, the dividend yield is 5.63%