3 Energy Stocks With Solid Dividends to Buy Today and Hold Forever

Jitendra Parashar
·3 min read
Oil pumps against sunset

The Canadian stocks are rallying this year, as the rising economic activities have boosted the future growth outlook for most businesses. However, some experts believe that the market might see a big correction in the near term, as many stocks look overvalued. To avoid the downside risks, investors can add the shares of some financially healthy companies — that also pay good dividends — to their stock portfolios. Regular dividends help investors generate handsome passive income.

Here’s a list of three of the best energy stocks on TSX that pay high dividends to their investors.

Enbridge stock

Enbridge (TSX:ENB)(NYSE:ENB) is one of the top Canadian energy companies that reward its investors with solid dividends. Its stock is currently trading at $49.43 per share with a dividend yield of 6.8%. In the last five years, its dividend per share have gone up by 74.2% to $3.24 per share in 2020 from $1.86 in 2015. Last year, its dividend per share increased by 9.8% YoY (year over year) to $3.24.

In the first quarter, Enbridge reported a 2.4% YoY drop in its earnings to $0.81 per share. Nonetheless, it was higher than analysts’ consensus estimate of $0.71 per share. Bay Street analysts expect the company to report a double-digit earnings growth in 2021 — pointing towards a significant improvement in its earnings growth trend in the coming quarters. Its stock is currently trading with 21.4% year-to-date gains. Long-term investors can buy its stock to get handsome returns on their investment and benefit from its high dividends.

Pembina Pipeline stock

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is another prominent energy stock on TSX to buy right now. The company primarily focuses on energy transportation and midstream service with the help of its large integrated system of pipelines.

In Q1 this year, Pembina Pipeline’s total revenue rose by 22% to about $2 billion after declining in the previous four consecutive quarters. Its dividends rose by 6.8% YoY to $2.52 per share last year, despite facing COVID-19-related operational difficulties. Just like Enbridge, Pembina Pipeline’s dividend per share has also increased significantly in the last few years. Between 2015 and 2020, it rose by about 40% to $2.52 per share from $1.80. As of June 15, 2021, it has a solid dividend yield of 6.2% at the current market price of $40.46 per share.

Keyera stock

Keyera (TSX:KEY) is also an amazing, high-dividend-paying Canadian energy stock that long-term investors can consider buying today. The stock has already risen by 54% this year so far. Due to industry-wide difficulties during the pandemic period, the company’s revenue fell by 17% last year. However, its sales are expected to rise by nearly 34% to $4 billion in 2021.

In 2020, Keyera rewarded its investors with a $1.92 dividend per share — with about a 3.8% YoY rise. In the last five years, its dividend per share rose by 35.2% to $1.92 per share in 2020 from $1.42 in 2015. Keyera stock has a solid dividend yield of 5.5% at the market price of $34.79 per share.

The post 3 Energy Stocks With Solid Dividends to Buy Today and Hold Forever appeared first on The Motley Fool Canada.

Looking for some UNBEATABLE, HIGH-GROWTH STOCKS? Here’s a FREE LIST for you:

5 Canadian Growth Stocks Under $5

We are giving away a FREE copy of our "5 Small-Cap Canadian Growth Stocks Under $5" report. These are 5 Canadian stocks that we think are screaming buys today.

Get Your Free Report Today

More reading

The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends KEYERA CORP and PEMBINA PIPELINE CORPORATION. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

2021

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Coban Porter sentenced to 6 years in prison for deadly DUI crash, same week his brother Jontay banned from NBA

    One Porter brother is banned for life from the NBA. Another is headed to prison.

  • Lululemon cutting over 100 jobs in Washington distribution centre closure

    VANCOUVER — Lululemon Athletica Inc. says it is cutting more than 100 jobs as it plans to close a distribution centre in Washington state. It says some employees at the Sumner, Wash. centre will be retrained and relocated to other facilities, but that "just over" 100 positions with be eliminated because of the closure. The company says it decided to close the smaller distribution centre as part of a regular evaluation of its network. Lululemon says its overall fulfilment strategy includes a mult

  • Remembering Matthew Kechter | Columbine 25 years

    In honor of the victims of Columbine on the occasion of 25 years since the tragedy, these are the inscriptions on each plaque provided by the Columbine Memorial Foundation. This is Matthew Kechter’s tribute.

  • The stock market can rise another 13% this year even with a dwindling rate-cut outlook, Fundstrat's Tom Lee says

    The S&P 500 could end the year at 5,700 even if the outlook for Fed rate cuts doesn't brighten, Fundstrat's Tom Lee says.

  • Des Moines police identify woman allegedly killed by domestic partner

    Des Moines police identify woman allegedly killed by domestic partner

  • First baby bison of the season born at Pawnee Bill Ranch

    First baby bison of the season born at Pawnee Bill Ranch

  • Artwork stolen in 2021 shows up 300 kilometres away

    More than two years after hundreds of pieces of art were stolen from an Osoyoos, B.C., artist, a thrift store about 300 kilometres away found some that had been included in a donation. In late 2021, Gabriele Beyer's home was broken into. She says thieves stole hundreds of silk ties and 46 paintings — and Beyer says the loss was a big hit to her livelihood."It was a mystery when the break-in happened," she told The Early Edition host Stephen Quinn. "I was in total shock for about six weeks."In th

  • How UAW, Volkswagen vote could give unions 'leverage'

    The United Auto Workers (UAW) is seeking to expand its unionization efforts beyond the Detroit Big 3 automakers (STLA, GM, F). Workers at Volkswagen's (VOW.DE) plant in Tennessee are voting on unionization, a pivotal moment for the labor organization. Cornell University's Director of Labor Relations, Arthur Wheaton, provides insights into the significance of this development. Wheaton notes that the Volkswagen vote is crucial because if the UAW can increase the number of unionized autoworkers in the United States, "it gives them more leverage at the bargaining table." When asked about the potential impact of the Volkswagen vote on the spread of unionization to other automakers, Wheaton acknowledges that "the reality is it's going to take a lot more work" — cautioning against the expectation that "all of the other plants will immediately get majority people to say yes we want the Union." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance. This post was written by Angel Smith

  • Person taken to hospital after being pinned during rollover crash on I-35

    Person taken to hospital after being pinned during rollover crash on I-35

  • British actress Sophie Rundle expecting ‘baby number two’

    Rundle said she had forgotten who she had and had not told about the pregnancy.

  • Lightning celebrate neurodiversity with new sensory room

    Lightning head coach Jon Cooper summed up why he loves it when the playoffs come around. "The emotional investment you get from the players, especially in that first round. What I consider the most exciting round in playoffs in any sport is that first round. It’s emotional chaos," he said after the regular season finale against Toronto. Sometimes that chaos can be a little overwhelming for fans who are sensitive to too much light and booming noise, which are common at every Lightning home game.

  • Concerns about day care loom large in wake of YMCA closure announcement

    When YMCA officials announced on Tuesday that local operations will cease as of May 15, they made sure to mention that day care is one of the services they are hoping to keep alive. The Sault Ste. Marie YMCA offers 541 licensed day care spots across the city, with 140 of those spots being situated at the organization's recreation centre on 235 McNabb St. But now that this building is up for sale, Danica Boissoneau doesn't know what that means for her 18-month-old daughter, who just got enrolled

  • Bilbao and Granada left wanting more in tight-fought draw

    MADRID (AP) — Athletic Bilbao drew with Granada 1-1 in a Spanish league match that won't satisfy either club for different reasons on Friday. Bilbao need points to secure a Champions League place but the draw left it three behind Atletico Madrid, which has a game in hand. Atletico has fourth place, with the top four guaranteed places in next year’s Champions League. “The Champions League spot is the dream,” Bilbao’s Nico Williams said. “It’s frustrating when the ball won’t go in, but we have to

  • British BMX Olympians training in US for Paris Games

    Elite athletes from Great Britain's Olympic BMX team are in the U.S. for training ahead of the 2024 Paris Games. Jamie Bestwick's passion for BMX started when he was just 10 years old. Initially, it was a means of getting around his neighborhood, but he quickly realized the sport's potential. Now, decades later, with more than a dozen X-Tams gold medals to his name, he is coaching the British Olympic team. He brought his team to an action sports camp in Woodward, Pennsylvania, near State College.

  • Remembering Lauren Townsend | Columbine 25 years

    In honor of the victims of Columbine on the occasion of 25 years since the tragedy, these are the inscriptions on each plaque provided by the Columbine Memorial Foundation. This is Lauren Townsend’s tribute

  • St. Pete leaders launch new program to include residents in decision-making

    The City of St. Petersburg is trying to get residents more involved in decision-making. City leaders have one million dollars available for an Innovative Equity Project. The options to invest in for the Innovative Equity Project Initiative include: roof replacement, youth crime prevention, swim safety, volunteerism, and utility assistance.

  • Jasper and the rest of Canada had warmest winter on record

    If you thought that we just had a pretty mild winter, then you were right. This past winter was the warmest in Canada since record keeping began, said Alysa Pederson, meteorologist with Environment and Climate Change Canada. “We talk about climate change a lot, but a big part of this year and this winter, was [that] we were also in a very strong El Niño,” Pederson said. “That's what we would expect of El Niño. And then, of course, this year was a relatively strong one. We expected it to be warme

  • Paris Hilton: 'Motherhood means more to me than fame and fortune ever could!'

    Paris Hilton had always dreamed of having a little girl called London as she admits that motherhood means more to her than fame and fortune ever could.

  • Strange celestial phenomenon: Atmosphere turns half white

    Residents of the Philippine island of Mindanao filmed a strange sight at the end of March. One half of the sky appeared white, the other blue. There was an optical phenomenon behind the two-tone appearance.

  • Louis Gossett Jr.'s cause of death revealed

    Louis Gossett Jr.'s official cause of death has been revealed just days after it had been announced that he had passed away at the age of 87.