One of the most well-known facts about investing is that dividend-paying stocks far outperform non-dividend-paying stocks over the long term when investors participate in a dividend reinvestment program. This means that every long-term investor should own at least one dividend-paying stock, and depending on your age, investment goals, and risk tolerance, maybe even a diversified portfolio full of them. With this in mind, let’s take a look at three energy stocks with yields of up to 5.05% that you should consider investing in today.
1. Husky Energy Inc.: 5.05% yield
Husky Energy Inc. (TSX:HSE) is one of the largest integrated energy companies in Canada. It pays a quarterly dividend of $0.30 per share, or $1.20 per share annually, giving its stock a 5.05% yield at today’s levels. Investors should also note that the company has maintained this quarterly payment since the second quarter of 2009, and as long as commodity prices recover over the next few months, I think it could continue to do so for the next several years.
2. Ensign Energy Services Inc.: 3.95% yield
Ensign Energy Services Inc. (TSX:ESI) is one of the largest oilfield service providers to the world’s energy industry. It pays a quarterly dividend of $0.12 per share, or $0.48 per share annually, which gives its stock a 3.95% yield at current levels. The company has also increased its annual dividend payment every year since it first began paying a dividend in September 1995, showing that it is strongly dedicated to maximizing shareholder returns and making it one of the top dividend-growth plays in the energy sector today.
3. Keyera Corp.: 3.4% yield
Keyera Corp. (TSX:KEY) is one of the leading independent natural gas and natural gas liquids midstream companies in western Canada. It pays a monthly dividend of $0.115 per share, or $1.38 per share annually, giving its stock a 3.4% yield at today’s levels. Like Ensign, Keyera has shown a strong dedication to increasing its dividend, with its streak currently at 13 consecutive years, and I think this makes it the top dividend-growth play in the natural gas industry today.
Which of these energy stocks belong in your portfolio?
Husky Energy, Ensign Energy, and Keyera represent three of the market’s top dividend-paying investment opportunities in the energy sector today. All long-term investors should take a closer look and strongly consider beginning to scale in to positions in one of them.
Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.
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.