Some investors love the steady payouts of energy companies. Others chase the excitement of a mining rally. But there’s no reason a portfolio can’t have both. Suncor Energy (TSX:SU), Keyera (TSX:KEY), and Eldorado Gold (TSX:ELD) are prime examples of how to balance these competing priorities. Together, these span oil sands, energy infrastructure, and gold mining: three sectors with different drivers but all capable of producing strong returns.
SU
Suncor has been delivering for income seekers for years, and 2025 has been no exception despite a pullback in the share price from last year’s highs. In the second quarter, it posted record upstream production of 808,000 barrels per day and record refinery throughput of 442,000 barrels per day. Those numbers came even as it completed major turnaround activity ahead of schedule, a sign of operational discipline.
Adjusted funds from operations came in at $2.7 billion, and the dividend stock returned $1.45 billion to shareholders through dividends and buybacks. With a forward dividend yield of about 4.26% and reduced capital spending guidance for the year, Suncor looks like it’s setting up for continued strong cash returns. The main risk, of course, is oil price volatility. Yet its integrated operations and cost control help cushion the blow when crude prices soften.
KEY
Keyera, meanwhile, plays a different role in the energy space. As a midstream operator focused on natural gas liquids, its earnings are more tied to fee-for-service contracts than commodity swings. That stability showed up in its second-quarter results, where fee-for-service realized margin rose 8.4% year over year. The company also raised its dividend by 4%, bringing the forward yield close to 5%.
Growth is on the horizon, too. Keyera is expanding its KAPS pipeline and KFS fractionation facilities, with long-term contracts locking in volumes. The big story is its planned $5.15 billion acquisition of Plains’s Canadian natural gas liquids business. This should be mid-teens accretive to distributable cash flow per share in its first full year. The deal won’t close until early 2026, but it’s already shaping expectations for a step-change in scale. The trade-off is a relatively high payout ratio and execution risk on large capital projects, but Keyera’s balance sheet is strong, and leverage is expected to stay in check.
ELD
Then there’s Eldorado Gold, which offers no dividend but plenty of upside potential in a high-gold-price environment. Over the past year, its shares have surged more than 30% as gold demand and prices climbed. In the second quarter, Eldorado reported revenue of $451.7 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $211.8 million.
The company is making heavy investments in the Skouries copper-gold project, set to start production in early 2026, which should significantly boost output while lowering costs. For now, those capital commitments mean free cash flow is limited. Risks include exposure to Turkish and Greek royalty changes, which have recently raised costs, but the combination of production growth and high prices keeps the outlook strong.
Foolish takeaway
For investors, these three companies complement each other. Suncor and Keyera provide the income backbone, with predictable cash flows and sizable yields. In fact, $5,000 in each would bring in about $460 annually!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SU | $53.32 | 93 | $2.28 | $212.04 | Quarterly | $4,955.76 |
| KEY | $43.29 | 115 | $2.16 | $248.40 | Quarterly | $4,978.35 |
Eldorado brings a growth kicker that tends to move independently of oil and gas markets, offering a potential hedge when energy prices cool. Over the past year, energy stocks have faced price pressure while gold miners have rallied, making this mix a natural way to smooth performance without giving up on either income or growth.
The balance between energy dividends and mining rallies is really about managing cycles. Owning all three stocks creates exposure to both scenarios, while the income from Suncor and Keyera helps investors stay patient during gold sector lulls. It’s not a perfect hedge, but for Canadian investors looking to diversify within resource stocks, this combination offers a compelling blend of yield, stability, and upside potential.
