2 High-Yielder Dividend Stocks to Own for a Decade

Two Canadian energy dividend stocks, Peyto and Baytex, offer different ways to earn income while staying positioned for the next commodity cycle.

Key Points
  • Peyto is a low-cost natural gas producer with a raised monthly dividend, strong profits, and falling debt.
  • Baytex offers more oil-price upside with improving guidance and growth targets, but its dividend is smaller and more cyclical.
  • Over a decade, reinvesting dividends and watching leverage matters more than timing oil and gas prices.

Oil prices can make dividend investors nervous. They jump, slide, recover, and slide again. That kind of movement can punish weak balance sheets fast. Yet it can also reward energy companies that control costs, protect cash flow, and return money when commodity prices cooperate. For investors looking over a full decade, the trick is finding businesses that can survive the bad years and still leave room for upside when the cycle turns.

That’s why Peyto Exploration & Development (TSX: PEY) and Baytex Energy (TSX: BTE) both deserve a look. Both operate in the Canadian energy sector. Both pay dividends. And both give investors different ways to collect income while staying exposed to oil and natural gas prices.

3 colorful arrows racing straight up on a black background.

Source: Getty Images

PEY

Natural gas could regain investor attention as electricity demand rises. Data centres, power-hungry industry, liquefied natural gas exports, and winter heating demand all point to a market where reliable gas supply still carries real value. Peyto fits that theme better than many high-yield names because it focuses on low-cost natural gas production in Alberta’s Deep Basin.

Peyto also pays investors today. The energy stock raised its monthly dividend by 9% in 2026, lifting the payout to $0.12 per share each month. That works out to $1.44 per share annually, which gives the stock a high yield when the share price sits under pressure. For income investors, that monthly cheque adds an extra layer of appeal.

The latest results gave the dividend story more support. Peyto reported record first-quarter 2026 production of 147,513 barrels of oil equivalent per day (boe/d). It also earned $171.1 million, or $0.82 per diluted share. The energy stock returned $67.6 million to shareholders through dividends during the quarter and reduced net debt by $89.2 million from the end of 2025. That’s the kind of combination dividend investors want to see. Peyto didn’t just raise the payout but also grew production, earned strong profits, and lowered leverage.

BTE

Baytex Energy gives investors a different flavour of income. It pays a quarterly dividend and still offers direct exposure to oil prices. The company operates in the Western Canadian Sedimentary Basin, with assets in heavy oil and the Pembina Duvernay. That gives it exposure to heavy oil, light oil, condensate, natural gas liquids, and natural gas.

Baytex’s first quarter also gave investors a stronger story. Production averaged 69,478 boe/d, with oil and natural gas liquids making up 88% of the mix. Adjusted funds flow came in at $151 million. Management raised 2026 production guidance to 69,000 to 71,000 boe/d and now targets 6% to 8% annual production growth through 2028.

The dividend remains modest in absolute dollars, with Baytex declaring $0.0225 per share quarterly for July 2026. But the yield can still look attractive because the share price remains low. Investors also get the chance for buybacks and growth if oil prices stay supportive. In short, Baytex looks more balanced today after selling its Eagle Ford assets and focusing harder on Canada.

Bottom line

Peyto looks like the strong current yield pick, while Baytex offers more oil-linked upside. For investors who can handle commodity cycles, both could help build a stronger energy sleeve over the next decade, especially with $7,000 invested.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
PEY$25.00600$1.44$864.00Monthly$15,000.00
BTE$6.462,321$0.09$208.89Quarterly$14,993.66

Reinvesting payouts, watching debt, and staying patient may do more for returns than trying to guess every move in oil and gas prices.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

the word REIT is an acronym for real estate investment trust
Dividend Stocks

I’d Put An Entire Year’s TFSA Room Into This 5.5% Dividend Stock for $32 Monthly in Retirement Income

With its stable rental income, high-quality tenant base, and long-term growth potential, CT REIT would be an excellent buy for…

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Got $2,000? 2 Canadian Dividend Stocks I’d Buy Before the Next Market Dip

If you are worried about the next market dip, buy these two dividend stocks with $2,000 to find safety from…

Read more »

happy woman throws cash
Dividend Stocks

5 TSX Dividend Stocks for Steady Cash Flow: What I’d Buy With $5,000

If you are looking for stable and growing income that you can depend on, these TSX dividend stocks are a…

Read more »

The sun sets behind a power source
Dividend Stocks

Taking CPP at 60 Shrinks Your Cheque 36%: This Dividend Stock Helps Bridge the Gap

Fortis can supplement retirement income, but dividend cash and a permanently reduced CPP pension aren't interchangeable.

Read more »

Data center servers IT workers
Dividend Stocks

The 4.3% Dividend Stock That Can Pay Retirees Cash Every 30 Days

Granite REIT (TSX:GRT.UN) has a 4.3% yield paid monthly.

Read more »

traders work at stock exchange
Dividend Stocks

Is TC Energy a Buy, Sell, or Hold in Late 2026?

TC Energy now eyes the top of its 2026 outlook and holds a $30 billion project pipeline. See if TRP…

Read more »

dividend stocks are a good way to earn passive income
Dividend Stocks

The Biggest Myths About Earning Passive Income From Stocks

You cannot get passive income from stocks. I explain why in this article.

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

TELUS is Down 30.3%: Here’s the Price I’d Start Buying at and How I’d Scale In

TELUS is beaten down yet remains a buying opportunity because of structural changes that pave the way for a recovery.

Read more »