Energy stocks, sometimes known as oil stocks or black gold stocks, account for a significant portion of the Canadian stock market, and the options can be confusing at times.
It’s not that easy to find the finest energy dividend stocks. Are you on the lookout for a good deal? or are you on the lookout for new opportunities? What is the expected growth from the electric vehicle transition? As you can see, things aren’t as straightforward as they used to be.
The energy industry is undergoing a transformation. Don’t make the mistake of assuming that what worked for your portfolio 15 years ago will continue to work in the future. Many believe that peak oil occurred around 2020, and that oil drilling will change in the future.
Many of the stocks can fit into your portfolio; it’s simply that when it’s time to buy, one may be preferable to the others.
Canadian Energy Stocks
Energy stocks do not all operate in the same way. When purchasing, there are three industries with significant commercial distinctions to be mindful of.
Before we go over the corporations by industry, let’s have a look at some of the major players. With SU, CNQ, and IMO, three of the big five are Canadian dividend aristocrats and blue chip stocks.
| Ticker | Company | Market Cap | PE | Yield |
| ENB | Enbridge | 79.55 | 15.11 | 7.08 |
| TRP | TC Energy | 51.41 | 26.34 | 5.48 |
| CNQ | Canadian Natural Resources | 44.53 | 24.21 | 4.14 |
| SU | Suncor | 38.39 | 1634.29 | 2.73 |
| IMO | Imperial Oil | 25.08 | 0.00 | 2.63 |
| PPL | Pembina Pipeline | 21.16 | 0.00 | 6.55 |
| CVE | Cenovus Energy | 19.02 | 0.00 | 0.62 |
| IPL | Inter Pipeline Ltd | 8.72 | 21.92 | 2.36 |
| CCO | Cameco Corp. | 8.51 | 0.00 | 0.31 |
| OVV | Ovintiv | 8.07 | 0.00 | 1.21 |
| KEY | Keyera Corp | 7.27 | 116.83 | 5.83 |
| ARX | Arc Resources | 6.83 | 17.61 | 2.55 |
| PKI | Parkland Corporation | 6.12 | 32.18 | 2.99 |
| WCP | Whitecap Resources Inc. | 3.99 | 9.15 | 0.96 |
| GEI | Gibson Energy Inc. | 3.67 | 35.84 | 5.58 |
| CPG | Crescent Point Energy | 3.37 | 0.00 | 0.17 |
| PSK | PrairieSky Royalty Ltd. | 3.08 | 74.80 | 5.22 |
| ERF | Enerplus Corporation | 1.83 | 0.00 | 4.61 |
| VET | Vermillion Energy | 1.66 | 5.67 | 0.00 |
| MTL | Mullen Group Ltd | 1.26 | 18.46 | 3.68 |
| FRU | Freehold Royalties Ltd | 1.23 | 6045.16 | 5.12 |
| SES | Secure Energy Services Inc. | 0.80 | 0.00 | 1.80 |
| PSI | Pason Systems Inc | 0.78 | 0.00 | 2.14 |
| EFX | Enerflex Ltd. | 0.77 | 14.45 | 0.93 |
| CEU | CES Energy Solutions | 0.49 | 59.71 | 0.00 |
| SCL | ShawCor Ltd | 0.38 | 0.00 | 0.00 |
| ESI | Ensign Energy Services | 0.27 | 0.00 | 0.00 |
| BNE | Bonterra Energy Corp. | 0.17 | 0.00 | 0.00 |
Now that you know who the players are and how big they are, it’s time to break them down by industry. If at all possible, investors should avoid overlapping industries.
The oil and gas industry is divided into three categories: downstream, midstream, and upstream. Unfortunately, because some players cross the groups, the industry classification does not fully match.
- Processing and refining in the downstream
- Transportation and storage in the midstream
- Upstream, there’s a lot of subsurface exploration.
The Oil and Gas Midstream Industry
The Oil and Gas Midstream Industry is a branch of the oil and gas industry that deals with the transportation of oil and gas.
| Ticker | Company | Market Cap | P/E | Yield | Aristocrat |
| ENB | Enbridge | 79.55 | 15.11 | 7.08 | YES |
| TRP | TC Energy | 51.41 | 26.34 | 5.48 | YES |
| PPL | Pembina Pipeline | 21.16 | 0.00 | 6.55 | YES |
| IPL | Inter Pipeline Ltd | 8.72 | 21.92 | 2.36 | NO |
| KEY | Keyera Corp | 7.27 | 116.83 | 5.83 | YES |
| GEI | Gibson Energy Inc. | 3.67 | 35.84 | 5.58 | NO |
The Oil And Gas Integrated Industry
This industry denotes a business that is involved in both downstream and upstream activities.
| Ticker | Company | Market Cap | P/E | Yield | Aristocrat |
| SU | Suncor | 38.39 | 1634.29 | 2.73 | NO |
| IMO | Imperial Oil | 25.08 | 0.00 | 2.63 | YES |
| CVE | Cenovus Energy | 19.02 | 0.00 | 0.62 | NO |
The Oil and Gas E&P Industry
Companies active in exploration and production are included in this industry.
| Ticker | Company | Market Cap | P/E | Yield | Aristocrat |
| CNQ | Canadian Natural Resources | 44.53 | 24.21 | 4.14 | YES |
| TOU | Tourmaline Oil | 9.08 | 9.55 | 2.09 | NO |
| OVV | Ovintiv | 8.07 | 0.00 | 1.21 | NO |
| ARX | Arc Resources | 6.83 | 17.61 | 2.55 | NO |
| WCP | Whitecap Resources Inc. | 3.99 | 9.15 | 0.96 | NO |
| CPG | Crescent Point Energy | 3.37 | 0.00 | 0.17 | NO |
| PSK | PrairieSky Royalty Ltd. | 3.08 | 74.80 | 5.22 | NO |
| ERF | Enerplus Corporation | 1.83 | 0.00 | 4.61 | NO |
| VET | Vermillion Energy | 1.66 | 5.67 | 0.00 | NO |
| FRU | Freehold Royalties Ltd | 1.23 | 6045.16 | 5.12 | NO |
| BNE | Bonterra Energy Corp. | 0.17 | 0.00 | 0.00 | NO |
Top Dividend Stocks in Canada in the Energy Sector
4. Keyera Corp
Keyera Corp. is one of Canada’s largest independent midstream energy firms, with a vast network of interconnected assets.
The company provides NGL gathering and processing, fractionation, storage, transportation, logistics, and marketing services to oil and gas producers in the Western Canada Sedimentary Basin.
Keyera’s primary infrastructure is strategically placed in the Western Canada Sedimentary Basin’s primary producing areas and the Edmonton/Fort Saskatchewan energy hub. Customers in Canada and the United States can purchase iso-octane, propane, butane, condensate, and crude oil from the company.
Gathering and Processing, Liquids Infrastructure, and Marketing are the three segments in which it operates. Keyera has extensive experience operating complex energy processing plants and offers a comprehensive variety of midstream services to its clients.
Investment Data
- Opportunity Score: 43
- Ticker: TSE:KEY
- Sector: Energy
- Industry: Oil & Gas Midstream
- Market Cap: 7.27B
- P/E: 116.83
- Dividend Yield: 5.83%
- Payout Ratio (Earnings): 685.71%
- Canadian Dividend Aristocrat: YES
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
- Dividend Growth Fit: 5/10
- Dividend Income Fit: 7/10
3. Suncor
Suncor Energy is one of the world’s largest independent energy firms, with operations in oil sands, offshore oil and gas production, processing, and marketing.
It is Canada’s largest oil producer. Resource extraction, upgrading, refining, and marketing, as well as midstream logistics, are all part of the company’s operations.
Suncor also engages in energy trading and manages a renewable energy company. Suncor possesses offshore assets in critical geographic locations such as the North Sea in the United Kingdom, the east coast of Canada, and Norway.
In North America, the corporation owns four refineries, an ethanol plant, wind farms, and over 1700 retail locations, with a total capacity of 940 mbpd oil production, 550 mbpd upgrading, and 460 mbpd refining.
Suncor stands out among peers because of its long-life, low-decline reserve base, which has a demonstrated life of more than 30 years.
Investment Data
- Opportunity Score: 15
- Ticker: TSE:SU
- Sector: Energy
- Industry: Oil & Gas Integrated
- Market Cap: 38.39B
- P/E: 1634.29
- Dividend Yield: 2.73%
- Payout Ratio (Earnings): 4200.00%
- Canadian Dividend Aristocrat: NO
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
- Dividend Growth Fit: 1/10
- Dividend Income Fit: 2/10
2. Enbridge Inc.
Enbridge Inc. is North America’s largest energy infrastructure firm. It is Canada’s largest natural gas distributor, with operations in oil and gas collection, transportation, processing, and storage. In Ontario, Quebec, New Brunswick, and New York, Enbridge serves 3.7 million consumers.
It has a 192,000-mile network of natural gas and natural gas liquids pipelines across North America and the Gulf of Mexico.
It has a massive crude oil and liquids transportation system, with over 17,000 miles of operating pipes.
The firm is well-known for its high-quality liquids and natural gas infrastructure. Enbridge also has a processing capacity of 3.1 Bcf/d and a net natural gas storage capacity of 438 Bcf. It also has a stake in roughly 3,000 megawatts of renewable energy capacity.
Liquids Pipelines (52 percent of 2018 earnings), Gas Transmission and Midstream (22 percent), Gas Distribution (17 percent), Green Power and Transmission (4 percent), and Energy Services are the five reporting segments for Enbridge (5 percent ).
Investment Data
- Opportunity Score: 74
- Ticker: TSE:ENB
- Sector: Energy
- Industry: Oil & Gas Midstream
- Market Cap: 79.55B
- P/E: 15.11
- Dividend Yield: 7.08%
- Payout Ratio (Earnings): 107.05%
- Canadian Dividend Aristocrat: YES
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
- Dividend Growth Fit: 6/10
- Dividend Income Fit: 10/10
1. Canadian Natural Resources
Canadian Natural Resources is a major exploration and production business for natural gas and crude oil in Canada.
The company operates a broad portfolio of assets in North America, the UK North Sea, and Offshore Africa (comprising a mix of natural gas, light crude oil, heavy crude oil, bitumen, and synthetic crude oil). The company’s operations can be divided into four categories: North America E&P, international, marketing, and midstream.
The corporation owns some of North America’s greatest oil sands assets, including thermal in situ holdings with tremendous expansion potential. In 2017, Canadian Natural completed the shift to a long-life, low-decline asset base, ensuring an increasing base of long-term cash flows, particularly in depressed commodity price scenarios.
Investment Data
- Opportunity Score: 56
- Ticker: TSE:CNQ
- Sector: Energy
- Industry: Oil & Gas E & P
- Market Cap: 44.53B
- P/E: 24.21
- Dividend Yield: 4.14%
- Payout Ratio (Earnings): 100.00%
- Canadian Dividend Aristocrat: YES
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
- Dividend Growth Fit: 6/10
- Dividend Income Fit: 7/10
Make YOUR OWN top ten list
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