Valued at a market cap of $355 million, Total Energy (TSX:TOT) provides products and services to the oil and natural gas industry in Canada, the U.S., and Australia. It operates through four segments, which include contract drilling services, rentals and transportation, compression and process services, and well servicing.
The TSX energy stock has returned close to 400% in the last five years after adjusting for dividend reinvestments. Despite these outsized gains, TOT offers shareholders a tasty dividend yield of 4.3%. Let’s see if you should own this TSX dividend stock at the current price.
Is the TSX dividend stock a good buy right now?
In 2024, Total Energy Services delivered record annual financial results while navigating lower U.S. drilling activity offset by strategic investments and acquisitions. Total’s expansion in Australia and a focus on LNG (liquified natural gas) export capacity in North America drove earnings growth over the past 12 months.
A key highlight was Total Energy’s $50.1 million acquisition of Saxon Energy Services in March 2024. The deal enhanced the company’s market presence in Australia. The addition of 11 Saxon rigs increased its Australian drilling fleet to 17 rigs, making Total one of the largest companies in the Australian land rig market. This acquisition also expanded the depth capacity of Total’s Australian operations, diversifying its customer base.
Safety remained a priority, with the company achieving its lowest total recordable injury frequency (TRIF) of 0.75 since beginning consolidated safety statistics in 2007. While investing $136.1 million in capital expenditures, Total Energy maintained strong shareholder returns, allocating $35.2 million toward share repurchases and dividends.
Relatively strong oil prices and improving natural gas prices provide a stable outlook for Total’s North American operations. Further, increased LNG export capacity and growing Asian demand for LNG offer tailwinds for both North American and Australian markets. Total Energy’s preliminary 2025 capital expenditure budget of $61.9 million includes $27.6 million for maintenance and $34.3 million for equipment upgrades and growth opportunities.
Despite global political tensions and economic uncertainty, Total Energy remains well-positioned with significant investments in equipment upgrades and the Saxon acquisition. Industry consolidation and rationalization following the 2020-2021 downturn have favourable market conditions, with essential infrastructure developments like the Trans Mountain pipeline expansion and LNG Canada export terminal expected to improve demand for energy services in Canada.
A growing dividend
Total Energy’s quarterly dividend has risen from $0.06 per share in October 2022 to $0.10 per share in 2025. Its annual dividend expense is around $15 million. Comparatively, it is forecast to increase free cash flow (FCF) from $70 million in 2025 to $140 million in 2026. Priced at five times forward FCF, the TSX stock has a dividend payout ratio of just over 20%, making it a top investment right now.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Total Energy | $9.38 | 5,000 | $0.10 | $500 | Quarterly |
Total Energy Services pays shareholders an annual dividend of $0.40 per share. To earn $2,000 in annual dividends, you will need to own 5,000 shares of the company, which are worth $46,900 today.
If the company raises its dividends by 10% annually, your payout will double in just over seven years.
