3 High-Yielding Energy Stocks You Can Count On

Looking for a high-yielding energy stock? If so, Ensign Energy Services Inc. (TSX:ESI), Peyto Exploration & Development Corp. (TSX:PEY), and Boralex Inc. (TSX:BLX) are great options.

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As history shows, dividend-paying stocks outperform non-dividend-paying stocks over the long term. It is for this reason that all investors should own at least one dividend-paying stock, and depending on your age, investment goals, and risk tolerance, maybe even a portfolio full of them. With this in mind, let’s take a look at three energy stocks with yields up to 5% that you could buy today.

1. Ensign Energy Services Inc.: 5% 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, giving its stock a 5% yield at today’s levels.

It is also important to note that Ensign has increased its dividend for 20 consecutive years, and its ample funds from operations, including $179.15 million in the first half of fiscal 2015, and low payout ratio, including 20.5% in the first half, could allow this streak to continue in 2016.

2. Peyto Exploration & Development Corp.: 4.2% yield

Peyto Exploration & Development Corp. (TSX:PEY) is one of the largest natural gas exploration and production companies in Alberta’s Deep Basin. It pays a monthly dividend of $0.11 per share, or $1.32 per share annually, giving its stock a 4.2% yield at today’s levels.

Investors should also note that Peyto has increased its dividend in each of the last two years, and its ample funds from operations, including $279.84 million in the first half of fiscal 2015, and low payout ratio, including 36.9% in the first half, could allow this streak to continue in 2015.

3. Boralex Inc.: 3.85% yield

Boralex Inc. (TSX:BLX) is one of the leading producers of renewable energy in Canada, the United States, and France. It pays a quarterly dividend of $0.13 per share, or $0.52 per share annually, giving its stock a 3.85% yield at today’s levels.

It is also worth noting that Boralex has maintained this quarterly rate since it first began paying a dividend in the first quarter of 2014, but its increased amount of cash flow from operations, including 44.1% year-over-year growth to $70.25 million in the first half of fiscal 2015, could allow for a significant bump in the very near future.

Which of these dividend-payers should you buy?

Ensign, Peyto, and Boralex are three of the best dividend-paying investment opportunities in the energy sector. Foolish investors should strongly consider establishing positions in one of them today.

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.

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