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.