Energy stocks, also known as oil or black gold stocks, make up a large percentage of the Canadian stock market, and the options can be overwhelming at times.
Finding the best energy dividend stocks is actually not that easy at all. Are you looking for income? or are you looking for growth What should the growth look like in the transition from electric vehicles? As you can see, it’s not that easy these days.
The energy industry is changing. Don’t assume that what worked for your portfolio 15 years ago will work for the next 15 years. Peek Oil happened in 2020, according to many, and oil drilling will change from now on.
Often a lot of stocks fit into your portfolio. When you’re ready to buy, one of the others may be preferable.
Canadian energy stocks
Not all energy stocks actually offer the same deal. There are 3 industries with business differences that are important to consider when purchasing.
Before we check the companies by industry, here are many of the players. Three of the five big companies are Canadian Dividend Aristocrats and Canadian blue chip stocks with SU, CNQ and IMO.
With an awareness of the players and their size, it is time to look at them by industry. Investors should avoid industry overlaps whenever possible.
The oil and gas industry happens to be divided into three groups: downstream, midstream and upstream. Unfortunately, the industry classification doesn’t quite match as some players overlap the groups.
- Downstream Processing and Refining
- Midstream transportation and storage
- Upstream – underground exploration
Oil & Gas – Midstream Industry
This industry is mainly active in the transportation and storage of oil and gas.
Oil & Gas – Integrated Industry
This industry represents a company that operates both downstream and upstream.
Oil & Gas – E&P Industry
This industry includes companies involved in exploration and production.
Top Canadian Energy Dividend Stocks
4. Keyera Corp.
Keyera Corp. is one of the largest independent midstream energy companies with extensive interconnected assets across Canada.
The company caters to the needs of oil and gas producers in the Western Canada’s sedimentary basin, providing NGL collection and processing, fractionation, storage, transportation, logistics and marketing services.
Keyera’s core infrastructure is strategically located in key production areas of the sedimentary basin in western Canada and the Edmonton / Fort Saskatchewan energy center. The company also markets isooctane, propane, butane, condensate, and crude oil to customers in Canada and the United States.
It works through Collecting and Processing, Fluid Infrastructure, and Marketing Segments. Keyera has extensive know-how in the operation of complex energy processing plants and offers its customers a comprehensive range of important midstream services.
Suncor Energy is one of the largest independent energy companies in the world operating oil sands operations, offshore oil and gas exploration, and petroleum refining and marketing.
It is the largest oil producer in Canada. The company operates across the value chain, including raw material extraction, upgrading, refining and marketing, and midstream logistics.
In addition, Suncor is active in energy trading and operates a business with renewable energies. Suncor owns offshore assets in key strategic geographic locations such as the UK North Sea, Canadian East Coast and Norway.
The company operates four refineries, an ethanol plant, wind farms and over 1700 retail locations in North America and has an oil production of 940 Mbit / s, a modernization of 550 Mbit / s and refining capacity of 460 Mbit / s.
Suncor’s long-lived, declining reserve base with a proven lifespan of more than 30 years sets it apart from its competitors.
Enbridge Inc. is the largest energy infrastructure company in North America. It is Canada’s largest natural gas distributor, collecting, transporting, processing and storing oil and gas. Enbridge serves 3.7 million customers in Ontario, Quebec, New Brunswick and New York.
The company has an extensive network of approximately 300,000 km of natural gas and NGL pipelines in North America and the Gulf of Mexico.
The transportation systems for crude oil and liquids are huge, with more than 27,000 km of active pipelines.
The company is known for its high quality liquid and natural gas infrastructure. In addition, Enbridge has a processing capacity of 3.1 Bcf / d and a net natural gas storage capacity of 438 Bcf. The company also has a stake in nearly 3,000 MW of renewable generation capacity.
Enbridge operates in five reporting segments: Liquids Pipelines (52% of 2018 results), Gas Transmission and Midstream (22%), Gas Distribution (17%), Green Power and Transmission (4%) and Energy Services (5%).
1. Canadian natural resources
Canadian Natural Resources is a large natural gas and crude oil exploration and production company in Canada.
The company operates a diversified portfolio of assets (consisting of a mixture of natural gas, light crude oil, heavy crude oil, bitumen and synthetic crude oil) in North America, the UK North Sea and offshore Africa. Canadian Natural’s business can be broadly divided into the following areas: North America E&P, International, Marketing and Midstream.
The company owns some of the best oil sands facilities in North America, particularly in-situ thermal properties, with significant growth potential. In 2017, Canadian Natural completed the transition to a long-lived, little-declining asset base that ensures a growing base of sustainable cash flows, especially in environments with low commodity prices.
My portfolio has had an annual return of over 12% since 2009. it’s from 2009 !!! That’s a constant return, which means that after the rule of 72 I double my portfolio every 6 years.
My approach is simple, but you need key data that I created using the Dividend Snapshot Screeners. No other investment service offers you easily understandable data, but also usable data. No hidden magic.
In fact, I’ve tried all of the investment services for dividend investors like a crash test dummy for investment services. Just ask me and you will see why I couldn’t use anything out there and create the Dividend Snapshot Screener.