If you’re interested in adding an income stock to your portfolio, then you’ve come to the right place. I’ve selected four stocks from the energy sector with yields up to 8.1% and track records of dividend growth, so let’s take a closer look at each to determine which would be the best fit for your portfolio.
TransAlta Renewables Inc. (TSX:RNW)
TransAlta Renewables is one of the largest independent power producers in North America and Australia, and it’s the largest wind power producer in Canada. Its portfolio currently consists of 18 wind facilities, 13 hydroelectric facilities, seven natural gas generation facilities, and one natural gas pipeline.
TransAlta Renewables currently pays a monthly dividend of $0.07833 per share, equating to $0.94 per share annually, which gives it an 8.1% yield at the time of this writing. It’s also important to note that the renewable energy giant’s 6.8% dividend hike in July 2017 has it positioned for 2018 to mark the fifth straight year in which it has raised its annual dividend payment, and this track record of growth led to it being added to the S&P/TSX Canadian Dividend Aristocrats Index in February.
Secure Energy Services Inc. (TSX:SES)
Secure Energy Services is an energy infrastructure and services company. It provides “safe, innovative, and environmentally responsible” fluids and solids management solutions to the oil and gas industries in Canada and the United States.
Secure Energy Services pays a monthly dividend of $0.0225 per share, equating to $0.27 per share annually, which gives it a yield of about 3.3% at the time of this writing. It’s also very important to note that the company has raised its dividend four times in the last five years, which led to it being added to the S&P/TSX Canadian Dividend Aristocrats Index in February.
Pembina Pipeline is one of North America’s leading energy infrastructure companies. Its portfolio of assets includes conventional oil, oil sands, heavy oil, and natural gas pipelines, natural gas processing plants, fractionators, and midstream storage facilities, and it’s a top pick of my Foolish colleague Jason Phillips.
Pembina Pipeline currently pays a monthly dividend of $0.18 per share, representing $2.16 per share annually, which gives it a yield of about 5.2% at the time of this writing. Foolish investors must also note that the infrastructure giant’s 5.9% dividend hike in October 2017 has it on pace for 2018 to mark the seventh straight year in which it has raised its annual dividend payment, making it one of the top dividend-growth stocks in the infrastructure industry.
Keyera Corp. (TSX:KEY)
Keyera is one of Canada’s largest energy midstream companies. It provides essential services to oil and gas producers in the Western Canada Sedimentary Basin through its integrated network of infrastructure, which includes gathering pipelines, natural gas processing plants, natural gas liquids processing, transportation, and storage facilities, and an industry-leading condensate handling system.
Keyera pays a monthly dividend of $0.14 per share, representing $1.68 per share annually, which gives it a 5.15% yield at the time of this writing. Foolish investors must note that the company has raised its dividend 16 times since it went public in 2003, and that its 5.7% dividend hike in May 2017 has it on track for 2018 to mark the ninth straight year in which it has raised its annual dividend payment, making it one of the top dividend-growth stocks in the energy sector 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 of the stocks mentioned. Pembina is a recommendation of Dividend Investor Canada.