A Perfect TFSA Stock: A 4% Yield With Constant Paycheques

Keyera offers a reliable 4% dividend yield, record fee-based earnings, and a transformational acquisition that could supercharge long-term growth.

Key Points
  • Keyera delivered record results across its Gathering and Processing and Liquids Infrastructure segments in 2025, with combined realized margins exceeding $1 billion.
  • The company just closed its $5.3 billion acquisition of Plains' Canadian natural gas liquids business, which is expected to be mid-teens accretive to distributable cash flow per share.
  • Management is guiding to 7%-8% annual fee-for-service EBITDA growth through 2027, backed by high take-or-pay contracts and a deep pipeline of capital-efficient growth projects.

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.

dancer in front of lights brings excitement and heat

Source: Getty Images

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.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Keyera. The Motley Fool has a disclosure policy.

More on Dividend Stocks

happy woman throws cash
Dividend Stocks

The Ideal TFSA Stock: A 5.9% Yield-Paying Constant Cash

Enbridge’s predictable cash flows, substantial growth pipeline, and long history of dividend increases underpin its long-term investment appeal for TFSA…

Read more »

woman gazes forward out window to future
Dividend Stocks

Dividend Income in Retirement: What Could Go Wrong?

Dividend investing is a proven way to create income in retirement but you must know the risks you need to…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

A 5% Monthly Payer I’d Buy for My TFSA: About $100 a Month on $24,000

Canada’s largest residential landlord offers a high yield, reliable monthly income, and a tax-sheltered foundation for TFSA investors.

Read more »

Two seniors walk in the forest
Dividend Stocks

Can Dividends Replace a Paycheque in Retirement?

Can dividends in retirement replace your paycheque? Explore how Scotiabank, RioCan REIT, and Fortis can help build a steady retirement…

Read more »

Sliced pumpkin pie
Dividend Stocks

The Fees That Quietly Eat Into a Small Investment

Many funds charge outrageous fees, but broad market index funds like the iShares S&P/TSX Capped Composite Index ETF (TSX:XIC) usually…

Read more »

dividends grow over time
Dividend Stocks

The U.S. Dollar is Rising Again: Here’s What VFV Investors Should Know

VFV investors receive both U.S. equity returns and currency translation.

Read more »

businessmen shake hands to close a deal
Dividend Stocks

A Canada-India Trade Deal Could Be Big for Infrastructure: Is WSP Stock a Buy?

India could require roughly US$840 billion of urban infrastructure investment over 15 years.

Read more »

woman considering the future
Dividend Stocks

How Much Would You Need to Invest to Earn $100 a Month in Dividends?

These two monthly-paying dividend stocks can boost your passive income in this uncertain macroeconomic environment.

Read more »