The Canadian energy sector performed impressively for several months before the sharp correction a few weeks ago. Interest rate hike announcements from central banks in Canada and the U.S. introduced uncertainty in the broader economic outlook. The combination of rising commodity costs and reduced borrowing power has led to rising fears of a recession.
Despite the recent pullback in the industry, the top Canadian energy stocks have delivered stellar shareholder returns to investors. At the time of this writing, the S&P/TSX Capped Energy Index is up by 17.21% from its July 14 level. The strength of this benchmark Canadian energy industry index reflects a resurgence in the energy sector, making it an attractive place to look for valuable investments.
Plus, several high-quality Canadian energy stocks distribute their profits to investors through shareholder dividends. Today, I will discuss a Canadian energy stock that provides its investors with monthly shareholder dividends that you can count on in your portfolio.
Keyera
Keyera Corp. (TSX: KEY) is a $7.17 billion market capitalization energy infrastructure company headquartered in Calgary. The company is one of the country’s largest midstream oil and gas operators. It focuses on raw gas gathering pipelines and processing plant operations to generate revenues.
Keyera stock trades for $33.19 per share at the time of this writing, down by 6.45% from its 52-week high after the energy sector’s pullback. However, it has recovered some of its losses in the last few weeks, and is up by 15.73% on a year-to-date basis.
Substantial recovery in its performance
Moving into the post-pandemic era, Keyera stock has displayed considerable strength. The company’s total revenue rose by 65.5% year-over-year in 2021. As restrictions ended and economies reopened, the pent-up demand for energy products led to a stellar recovery for this beleaguered energy stock.
In 2021, almost 80% of Keyera’s revenue came in through the domestic energy market, and its U.S. operations accounted for the rest.
Wall Street analysts anticipate a 32% growth in the company’s earnings this year. This is impressive when considering that many of its peers are struggling to keep pace with last year’s growth. Keyera has been focusing on innovating its business and accelerating the use of technology to improve its operations, resulting in a stronger financial growth outlook.
Reliable income stream
Keyera stock is among the few energy sector stocks that pay its shareholders monthly dividends. The company’s strong financial performance has allowed its management to reward investors with high-yielding dividend payouts. As of this writing, Keyera stock boasts a juicy 5.78% dividend yield.
It’s also worth noting that the stock raised its shareholder dividends by 25% between 2016 and 2021. The combination of monthly shareholder dividends and steadily growing payouts make it an attractive investment to consider.
Foolish takeaway
Strong demand for energy products is likely to continue for the next few years. The recent dip in Keyera’s share prices could give you an opportunity to lock in its inflated dividend yield to enjoy higher-yielding returns through monthly payouts. If you’re an investor seeking income-generating assets to buy and hold for the long run, Keyera stock could be a valuable addition to your portfolio.
