Energy Dividend Stocks Investors Love

The energy industry is highly dependent on commodity prices, making its profits and cash flows sensitive to the economic cycle. However, as oil rebounded from its multi-year lows, certain energy companies are in position to earn profits. As a result, shareholders are paying more attention to companies like Canadian Natural Resources and Pembina Pipeline, and have rising expectations for dividend payments as well. I’ve made a list of other value-adding dividend-paying stocks in the energy industry for you to consider for your investment portfolio. Canadian Natural Resources Limited (TSX:CNQ) CNQ has a solid dividend yield of 2.57% and has a payout ratio of 48.03% . The company’s dividends per share have risen from $0.17 to $1.1 over the last 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period. Canadian Natural Resources seems reasonably priced when looking at its PE ratio (19.1). The industry average suggests that CA Oil, Gas and Consumable Fuels companies are more expensive on average 23.4.

Pembina Pipeline Corporation (TSX:PPL) PPL has an appealing dividend yield of 4.88% and the company currently pays out 158.05% of its profits as dividends . PPL’s dividends have seen an increase over the past 10 years, with payments increasing from $1.44 to $2.16 in that time. They have been consistent too, not missing a payment during this 10 year period. The company also looks promising for it’s future growth, with analysts expecting an impressive earnings per share growth rate of over 100% over the next three years.

Inter Pipeline Ltd. (TSX:IPL) IPL has a enticing dividend yield of 6.28% and distributes 116.87% of its earnings to shareholders as dividends . The company’s dividends per share have risen from $0.84 to $1.68 over the last 10 years. They have been dependable too, not missing a single payment in this time.

For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.