Investing in quality energy stocks during a period of elevated prices should allow you to benefit from capital gains and a growing dividend. One such TSX stock is Keyera (TSX:KEY), which offers a 4% yield in 2026.
Valued at a market cap of $12 billion, Keyera stock has returned 155% to shareholders over the past decade, after adjusting for dividend reinvestments.
In 2026, the Canadian energy company continues to report a record-breaking fee-based business and a freshly closed acquisition that could meaningfully accelerate earnings growth for years to come.
Keyera Corp is my top pick for TFSA investors who want dependable income without sacrificing upside.
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Keyera closed a game-changing deal
Last week, Keyera announced the closing of its $5.3 billion acquisition of Plains’ natural gas liquids business in Canada.
- The acquisition is a landmark transaction that expands Keyera’s national infrastructure platform and strengthens its already formidable integrated NGL value chain.
- Management expects over $100 million in annual run-rate synergies to be realized within 12 months of closing.
- Once integration is complete, the transaction is expected to be mid-teens accretive to distributable cash flow per share.
Think of it this way: the same dividend is now backed by a much larger and more efficient earnings engine.
President and Chief Executive Officer Dean Setoguchi captured the opportunity well when he said the acquired assets “directly aligned with our strategy of strengthening and extending our integrated NGL value chain,” according to a company statement.
In 2025, the Canadian dividend stock delivered $439 million in Gathering and Processing realized margin, up from $413 million the year before. Its Liquids Infrastructure segment brought in a record $593 million, up from $558 million in 2024. Together, those two segments generated over $1 billion in combined realized margin for the first time.
Keyera’s strong performance in 2025 reflects higher throughput, growing contracted volumes at plants such as Wapiti and Simonette, and a steady ramp-up in volumes on the KAPS pipeline.
The business is scaling, and the contracts underpinning it are largely take-or-pay, meaning Keyera gets paid whether producers flow gas or not.
That fee-for-service model is the backbone of the dividend’s durability.
A growing dividend
Keyera has guided for 7% to 8% annual fee-for-service EBITDA (earnings before interest, tax, depreciation, and amortization) growth through 2027. The guidance is backed by three already-sanctioned projects: two fractionation expansions at the Keyera Fort Saskatchewan facility and KAPS Zone 4.
Management has been explicit about its dividend philosophy. Chief Financial Officer Eileen Marikar noted on the company’s Q4 earnings call that capital allocation priorities remain consistent: grow the dividend sustainably, fund sanctioned growth capital, and reduce debt toward the low end of the two-and-a-half to three times net debt-to-adjusted EBITDA target range.
Pro forma leverage is expected to return to that range by the end of 2027, giving investors a clear runway.
Inside a Tax-Free Savings Account, Keyera’s 4% yield compounds without the drag of dividend taxes. Over time, that difference adds up meaningfully.
For TFSA investors who want steady paycheques and genuine long-term growth, Keyera ticks every box.
