What if you could have the best of both worlds — a stock that’s rising in value while also paying you consistent dividends? That’s exactly what some of the best high-yield stocks on the TSX are doing right now. While many dividend stocks trade sideways or even decline, a select few have been climbing higher while still offering impressive payouts. If you’re looking to supercharge your portfolio with such top dividend stocks, you’re in the right place. In this article, I’ll introduce you to two top high-yield dividend stocks that are surging and tell you why they might deserve a spot in your portfolio.
Source: Getty Images
Gibson Energy stock
The first high-yield dividend stock you can consider right now is Gibson Energy (TSX:GEI), a top player in North America’s energy infrastructure sector, with its focus on crude oil storage, processing, and transportation. With a 6.8% dividend yield and a $4 billion market cap, GEI stock currently trades at $24.17 per share after rallying by 17% over the last year.
Gibson’s total revenue in the quarter ended in September 2024 stood at $2.9 billion, with its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rising 1% YoY (year over year) to $151 million. Its adjusted EBITDA margin also expanded to 5.2% last quarter from 4.6% a year ago.
More importantly, the company’s adjusted quarterly net profit surged by 161% to $53.8 million with the help of lower finance costs and strong operational performance. Gibson’s infrastructure segment, which now accounts for 85% of its earnings, drove this growth due partly to record crude volumes at its Edmonton Terminal.
Interestingly, Gibson recently extended a major contract at its Gateway Terminal and secured a new pipeline connection to boost crude exports. These positive developments should help the company post strong results in the coming years, making GEI stock really attractive to buy now and hold for the long term.
Headwater Exploration stock
And that brings us to the second high-yield stock, Headwater Exploration (TSX:HWX). Just like Gibson Energy, this one isn’t just about high dividends but also about strong growth potential.
Headwater is a Canadian oil and gas company with heavy oil reserves in Alberta’s Clearwater region and natural gas assets in New Brunswick. Currently, HWX stock trades at $6.84 per share with a market cap of $1.6 billion. At this market price, it offers a strong 6.4% annualized dividend yield.
Over the past year, Headwater’s stock has climbed 9.3%, and in the last five years, it’s skyrocketed by 442%. That’s the kind of growth that excites most investors. Although its adjusted earnings in the September 2024 quarter witnessed a slight dip to $0.20 per share, the company remains a cash-generating machine, with its funds from operations rising over 4% YoY to $84.2 million.
Notably, Headwater has been steadily expanding, with its production averaging 21,500 barrels of oil equivalent per day in the December 2024 quarter. Last year alone, Headwater scooped up 193 new sections of land, increasing its presence within high-potential oil fairways and brightening its long-term growth outlook.
