3 TSX energy stocks with high dividend yields above 5% to buy today

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When the stock market got choppy recently and all those overvalued high-growth tech stocks fell, investors fled to value stocks. They are blue-chip, large-cap companies with good balance sheets, strong cash flow, steadily increasing profitability and dividends with a long and consistent payout history.

Fortunately for Canadian investors, our stock market is full of these heavy hitters. Today I will feature three of the top stocks in the oil and gas midstream industry, which is part of the energy sector that has been the best performer in 2021 and 2022 so far. These three giants have high dividend yields above 5% and the fundamentals to back them up.


Enbridge (TSX:ENB)(NYSE:ENB) is the undisputed king here. As Canada’s largest energy infrastructure company, it operates in five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation and Energy Services.

ENB’s forward annual dividend yield sits at an incredible 6.30%. The company has paid dividends for the past 65 years with 26 consecutive years of annual increases, posting an incredible five-year dividend growth rate of 11.74%. With a considerable competitive advantage in the sector, Enbridge could be an excellent long-term base holding in your portfolio.

TC Energy

If Enbridge is number 1, then TC Energy (TSX:TRP)(NYSE:TRP) is #2 here. TRP builds and operates a 93,400 km network of natural gas pipelines from natural basins to local distribution companies, power plants, industrial facilities, interconnecting pipelines and LNG export terminals.

TRP’s forward annual dividend yield sits at a very respectable 5.40%, with a five-year average yield of 4.82%. While it may not be as substantial as ENB, holding this additional stock is a good idea to hedge against the risk of a single energy stock performing poorly.

Pembina pipeline

Our final pick today is Pembina pipeline (TSX:PPL)(NYSE:PPL). PPL primarily operates through three segments: Pipelines, Facilities and Marketing and New Ventures, dealing respectively with Oil Sands and Heavy Oil, Natural Gas, Condensate and Natural Gas Liquids, and Gas Liquids. hydrocarbons and natural gas.

Although not as big or important as ENB or TRP, PPL is worth consideration for a dividend growth investor. The forward annual dividend yield nearly rivals ENB at 6.24%, with a five-year average dividend yield of 5.74%. Owning PPL in addition to ENB and TC would allow you to capture the entire midstream oil and gas sector.

The insane takeaway

Dividend growth investors looking for high yields should consider the Canadian energy sector, particularly ENB, TRP and PPL. These three stocks offer excellent fundamentals, substantial dividend yields, a long history of consecutive payouts and increases, and good competitive advantages. Buying and holding these three stocks at the heart of an income-oriented portfolio could be a winning strategy.

About Keith Tatum

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