7.6% Dividend Yield! This Profit Generator Never Quits

Even as the energy sector stays volatile, this top Canadian energy stock shows how dependable infrastructure and operational strength could keep high dividends flowing.

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Key Points

  • Gibson Energy offers a reliable 7.6% dividend yield, making it an attractive option for income-focused investors amid market uncertainties.
  • The company's operational strength, with record throughput volumes and strategic cost management, supports its consistent dividend payouts.
  • Gibson's strategic moves, including debt improvement and long-term contracts, position it for long-term growth and stability in the energy sector.

Have you ever wanted to own a stock that just keeps paying you, no matter what’s happening in the markets? The one that pays you well and keeps doing its job even when others are tumbling. That’s the dream, right? Especially when it also throws off a juicy 7.6% dividend yield.

While that kind of reliability may feel like a rare gem in today’s uncertain macroeconomic environment, some TSX-listed companies are still continuing to grow, building new revenue streams, and rewarding patient shareholders quarter after quarter. That’s exactly what Gibson Energy (TSX:GEI) has been doing for years.

In this article, let’s take a closer look at why Gibson Energy could be one of the best Canadian dividend stocks worth holding onto for decades, especially if dependable income and long-term growth are part of your investing goals.

A high-yield Canadian dividend stock to buy

This Calgary-based energy infrastructure firm mainly focuses on the storage, processing, and gathering of liquids and refined products across North America.

After declining by nearly 6% so far in 2025, GEI stock currently trades at $22.66 per share with a market cap of $3.7 billion. However, the recent weakness in its share price has made its annualized dividend yield look even more attractive at 7.6%, which could help income-focused investors create a rare income stream in today’s uncertain market.

Recent performance shows why this stock keeps paying

Despite a tough year for many TSX-listed energy stocks, Gibson’s performance remains stable. As of early November 2025, GEI stock was down about 15% from its 52-week high, but the company is still holding up really well operationally.

In the latest quarter (ended in September), Gibson posted record throughput volumes both in the U.S. and Canada. Its Edmonton terminal, which is now connected to the Trans Mountain expansion, saw volumes jump 26% YoY (year over year). At the same time, the company’s U.S. Gateway terminal in Texas recorded a 30% YoY increase to 717,000 barrels per day with the help of a completed dredging project. This operational strength is exactly what’s helping GEI stock keep its cash flowing — and dividends growing.

Financials reflect consistency despite short-term headwinds

Last quarter, Gibson posted $147 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), slightly lower than a year ago. This dip was mainly due to a weaker performance in its marketing segment, which dropped to $7 million as the trading environment remained challenging. However, the company’s infrastructure segment remained strong as it delivered $154 million in adjusted EBITDA due mainly to higher volumes and cost-saving efforts.

Notably, Gibson Energy slashed non-recurring and recurring costs by over $9 million in the latest quarter, which helped it restrict the decline in its net profit. These steps also lifted its distributable cash flow per share by 10%, which is really important for a dividend stock like this.

Why this profit generator never quits

Despite short-term uncertainties, Gibson is continuing to prepare for long-term stability and growth. It just issued $375 million in unsecured notes to clean up older debt and strengthen its balance sheet. Meanwhile, it also secured a key infrastructure deal with Baytex Energy, which should help it lock in stable future volumes under a long-term agreement.

As the energy sector continues to regain strength, Gibson’s focus on core infrastructure, cost efficiency, and long-term contracts could keep this income machine running strong for years to come. That’s why GEI stock could be a great buy for long-term investors, especially at current levels.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Gibson Energy. The Motley Fool has a disclosure policy.

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