Investors in Canadian oil and gas have a lot of high-yielding stocks to choose from at the moment, with decent valuation and reassuring growth making for a rich variation of defensive portfolio packers. Below are three of the very best high-yielding energy stocks on the TSX index, along with a breakdown of some of their vital stats to help would-be investors add some passive income to their personal investment portfolios and give them some shelter from any coming turbulence in the markets.
Keyera (TSX:KEY)
One of the key stocks in the oil and gas space, Keyera has a great mix of stats: a one-year past earnings growth of 34.1% beats its in-house five-year average of 11%, while its PEG of 1.8 is modest for a stock of this calibre, with attractive valuation backed up by a discount of 16% against future cash flow value. The main attraction, though, is that dividend yield of 6.49%, which is made even better by a 9.6% expected annual growth in earnings. This is a good all-around stock if you’re looking for income with some growth behind it — a strong long-term pick for a TFSA or RRSP.
Enbridge (TSX:ENB)(NYSE:ENB)
This ubiquitous TSX index super-stock is pretty evenly valued at the moment, with a clunky P/E of 46 times earnings and P/B of 1.5 times book. While the latter isn’t quite at parity with book value, Enbridge’s share price is almost exactly even with its future cash flow value. The current valuation leads to a sizable dividend yield of 6.62%, with a handsome 33.6% expected annual growth in earnings. If Keyera looked like your kind of stock, Enbridge should have plenty to keep you satisfied.
Inter Pipeline (TSX:IPL)
This strategic TSX index energy stock enjoyed a one-year past earnings growth of 15.6% that matched the industry exactly, though it trailed its own five-year average past earnings growth of 28.2%. While its balance sheet may not be the healthiest of our three listed energy tickers, with a high comparative debt level of 145.4% of net worth, Inter Pipeline has seen a steady amount of inside buying over the last 12 months.
Value indicators are a little bit mixed for Inter Pipeline at the moment, with a cool P/E of 13.3 undermined by a somewhat bloated P/B of 2.2. Long-term investors should be aware that growth is expected to contract by 2.3% over the next one to three years, though at the moment its highly rewarding dividend yield of 8.35% is one of the most alluring on the TSX index right now.
The bottom line
If you want intrinsic value, Keyera is your stock, with its +10% discount against the projected cash flow value. Enbridge is the strongest choice if you happen to be a growth investor, with a significant increase in earnings projected, while the clear winner in terms of passive income alone is the heavy-hitting Inter Pipeline. All told, these three stocks are the top energy dividend payers on the TSX index today, and any of them (or all three together, if you’re flush) can add some defensive backbone to your oil and gas portfolio.
