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3 Energy Stocks With Solid Dividends to Buy Today and Hold Forever

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The Canadian stocks are rallying this year, as the rising economic activities have boosted the future growth outlook for most businesses. However, some experts believe that the market might see a big correction in the near term, as many stocks look overvalued. To avoid the downside risks, investors can add the shares of some financially healthy companies — that also pay good dividends — to their stock portfolios. Regular dividends help investors generate handsome passive income.

Here’s a list of three of the best energy stocks on TSX that pay high dividends to their investors.

Enbridge stock

Enbridge (TSX:ENB)(NYSE:ENB) is one of the top Canadian energy companies that reward its investors with solid dividends. Its stock is currently trading at $49.43 per share with a dividend yield of 6.8%. In the last five years, its dividend per share have gone up by 74.2% to $3.24 per share in 2020 from $1.86 in 2015. Last year, its dividend per share increased by 9.8% YoY (year over year) to $3.24.

In the first quarter, Enbridge reported a 2.4% YoY drop in its earnings to $0.81 per share. Nonetheless, it was higher than analysts’ consensus estimate of $0.71 per share. Bay Street analysts expect the company to report a double-digit earnings growth in 2021 — pointing towards a significant improvement in its earnings growth trend in the coming quarters. Its stock is currently trading with 21.4% year-to-date gains. Long-term investors can buy its stock to get handsome returns on their investment and benefit from its high dividends.

Pembina Pipeline stock

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is another prominent energy stock on TSX to buy right now. The company primarily focuses on energy transportation and midstream service with the help of its large integrated system of pipelines.

In Q1 this year, Pembina Pipeline’s total revenue rose by 22% to about $2 billion after declining in the previous four consecutive quarters. Its dividends rose by 6.8% YoY to $2.52 per share last year, despite facing COVID-19-related operational difficulties. Just like Enbridge, Pembina Pipeline’s dividend per share has also increased significantly in the last few years. Between 2015 and 2020, it rose by about 40% to $2.52 per share from $1.80. As of June 15, 2021, it has a solid dividend yield of 6.2% at the current market price of $40.46 per share.

Keyera stock

Keyera (TSX:KEY) is also an amazing, high-dividend-paying Canadian energy stock that long-term investors can consider buying today. The stock has already risen by 54% this year so far. Due to industry-wide difficulties during the pandemic period, the company’s revenue fell by 17% last year. However, its sales are expected to rise by nearly 34% to $4 billion in 2021.

In 2020, Keyera rewarded its investors with a $1.92 dividend per share — with about a 3.8% YoY rise. In the last five years, its dividend per share rose by 35.2% to $1.92 per share in 2020 from $1.42 in 2015. Keyera stock has a solid dividend yield of 5.5% at the market price of $34.79 per share.

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.

The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends KEYERA CORP and PEMBINA PIPELINE CORPORATION. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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