This TSX Pipeline Stock Could Be a Stealthy Dividend Winner

Many investors might believe that when oil production drops, anything related to oil and gas will go down as well. Yet that’s not the case for pipeline stocks in North America. In fact, demand is higher than ever!

That’s why finding a TSX pipeline stock can be a stealthy dividend winner, especially when investors want income but don’t want to chase the flashiest names. Pipeline and midstream companies can offer a useful mix of essential infrastructure, long-term contracts, and steady cash flow. So, let’s look at one to watch on the TSX today.

KEY

Keyera (TSX:KEY) is a Calgary-based energy infrastructure company focused on natural gas and natural gas liquids. The pipeline stock gathers and processes natural gas, transports and stores it, and in short, sits between producers and end markets. Keyera helps move and process the energy products that power homes, industry, petrochemicals, and exports.

Most recently, Keyera stock was in the news for closing its acquisition of all of Plains’ Canadian natural gas liquids (NGL) business on May 12, 2026, for $5.3 billion, including closing adjustments. Clearly, this is not a small tuck-in deal, but a major expansion of Keyera’s NGL platform. Keyera stock now sees the transaction as a way to deepen its integrated platform and strengthen its position in Canadian energy infrastructure.

Into earnings

Now this is just the latest development, but there have been several others to note. For instance, Keyera stock also completed a $200 million acquisition of a 50.1% working interest in two Simonette-area gas plants and related infrastructure in late 2025. This deal delivers immediate cash flow and secures more long-term volumes for its North Region and downstream assets.

Furthermore, there’s more on the way.  Keyera stock’s KAPS Zone 4 pipeline extension, an 85-kilometre project from Pipestone to Gordondale, remains on track for mid-2027 service at a net cost of about $220 million. Meanwhile, the KFS Frac III expansion, a 47,000-barrel-per-day (boe/d) project, remains scheduled for mid-2028 at an estimated net cost of about $490 million.

Sure, 2025 was not a perfect year, but it still showed the strength of the base business.
Keyera stock generated $1.13 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025, compared with $1.28 billion in 2024. Even so, Keyera stock still produced $735 million in distributable cash flow for the year, or $3.21 per share.

Looking ahead

So, the big question is whether Keyera stock is worth your time right now, and in short, I’d say yes. Keyera stock offers a 4% dividend yield at writing, an increase from 2025.  Of course, that doesn’t mean the company’s shares are cheap, trading at about 28 times earnings at writing. But it could certainly be a strong growth and income investment if you’re an investor looking towards the future.

Keyed stock reaffirmed 2026 stand-alone growth capital spending of $400 million to $475 million. Maintenance capital is expected to be at $140 million to $160 million, while stand-alone cash taxes should fall to $60 million to $70 million. Overall, Western Canadian natural gas and NGL production still needs Keyera’s assets, making it a compelling buy on a dip for income investors. And even now, $7,000 could bring in ample income.

Bottom line

When it comes to pipeline stocks, Keyera stock might not be the first one investors think of. Yet that’s what makes it interesting, and potentially valuable long term. With a solid 4% dividend yield and major infrastructure growth, it could be one TSX stock worth watching before anyone else catches on.