5 Canadian Energy Companies With Dividend Yields Over 4%

These five energy companies have dividend yields 63% better than Dow’s average yield.

| More on:
The Motley Fool

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%

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 Leia Klingel holds no positions in any of the stocks mentioned in this article.

More on Investing

Dividend Stocks

2 of the Best Dividend Stocks to Buy Before They Start to Recover

These dividend stocks offer superior deals for those seeking long-term passive income, but these prices certainly won't last forever.

Read more »

Dividend Stocks

Algonquin Insiders Are Loading Up on AQN Stock – Should You Follow?

Algonquin Power and Utilities (TSX:AQN) insiders poured millions into AQN stock last week. Share valuation multiples seem compelling.

Read more »

Young adult woman walking up the stairs with sun sport background
Stocks for Beginners

New Investor? Buy These 2 Growth Stocks

These two growth stocks are perfect if you want superior growth in the near future but a long-term hold that…

Read more »

Man data analyze

A Passive-Income Triple Play: 3 Top TSX Stocks to Buy Together

These two top Canadian dividend stocks provide long-term investors with much-needed stability and passive income right now.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

TFSA: 2 Stocks To Earn Passive Income Even in a Recession

Investors are coping with 2023 recession fears differently. Some are investing in stocks that can create long-term passive income.

Read more »


2 Top Canadian Retail Stocks That Could Get a Holiday Boost

Here's why Canadian Tire (TSX:CTC.A) and Canada Goose (TSX:GOOS) are two top Canadian retail stocks to buy right now.

Read more »

Cogs turning against each other
Dividend Stocks

3 Stocks You Can Confidently Own in an Upside-Down Market

Although many stocks have lost major value this year, here are three high-quality companies you can confidently own in this…

Read more »

Increasing yield
Dividend Stocks

2 Ultra-High-Yield Dividend Stocks on Sale Today

Besides their ultra-high yields, here are more factors that make these two of the best Canadian dividend stocks worth buying…

Read more »