Are you looking for a stock that offers both dependable income and real growth potential — without breaking the bank? At under $15 per share and yielding 4.4%, Pason Systems (TSX:PSI) could be an amazing dividend stock to consider today.
This Canadian energy technology company isn’t just a dividend payer but a lean, profitable business with a strong balance sheet and exposure to long-term industry trends. Pason might fly under the radar, but its low valuation, solid yield, and strong fundamentals make it a compelling pick for investors looking for both value and growth.
In this article, I’ll break down why Pason could be a smart addition to your portfolio today.
A steady performer with strong fundamentals
Calgary-based Pason Systems is a tech-driven energy firm that delivers advanced data solutions for drilling rigs, including real-time insights, remote communication tools, and analytics to boost operational efficiency. It also has a growing presence in completions automation and solar energy control systems.
After rising by 9.3% over the last month, PSI stock currently trades at $11.76 per share. It has a market cap of $928.6 million and offers a respectable annualized dividend yield of 4.4%, paid quarterly.
What’s driving PSI stock’s short-term moves?
Besides the broader market recovery, Pason’s ability to outpace the broader industry, even in slower markets, could be one of the reasons helping its stock rebound of late.
In the first quarter of 2025, industry drilling activity in North America actually declined by 3% YoY (year-over-year), but Pason still managed to grow its North American drilling revenue by 3%. That says a lot about the value of its tech offerings and its pricing power.
In addition, the rising adoption of its solutions in completions and energy storage makes its business model diversified and doesn’t entirely depend on traditional oil and gas drilling. In fact, its completions revenue surged 25% YoY, and solar segment revenue nearly doubled in the latest quarter.
Financial results show strong momentum
Last quarter, Pason’s total revenue rose 8% YoY to $113.2 million. The company’s adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) also climbed 7% from a year ago to $45.2 million, with a margin of just under 40%. While its net profit dropped on a YoY basis due to a one-time gain booked in 2024, its core business is clearly moving in the right direction.
Meanwhile, the company generated $23.2 million in free cash flow in the March quarter, nearly doubling from the same period a year ago. That kind of cash generation gives Pason plenty of flexibility to invest and return capital to shareholders with attractive dividends.
Why Pason stock looks promising right now
Even in a low-growth environment, Pason is continuing to invest in areas like its Intelligent Wellhead Systems completions technology and Mud Analyzer platform. It’s also ramping up capabilities in its solar energy software business segment, which just saw record quarterly revenue.
Given its rock-solid balance sheet, steady cash flows, and a growing presence in energy transition tech, PSI stock could be a great dividend stock for income-focused investors who want growth, too.
