Top Canadian (TSX) Energy Dividend Stocks

Top Canadian (TSX) Energy Dividend Stocks

UPDATED Dec 02, 2022

What are the best Canadian (TSX) Energy Dividend Stocks?

According to our Simply Wall St analysis these are the best Canadian Energy dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.

Our criteria to find Top Dividend Companies

High Yield

  • Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
  • Yields vary between markets, so we focus on the top dividend payers in each market.

What do we look for?

  • Is the yield in the top 25% of the market's dividend payers.

Consistent Dividends

  • Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
  • If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.

What do we look for?

  • Has the dividend been stable over the last 10 years.
  • Has the dividend grown over the last 10 years.

Dividend Cover

  • Ideally the company doesn't pay out all of its earnings, neglecting future growth.
  • If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.

What do we look for?

  • Are dividends covered by earnings.
  • Are dividends forecast to be covered by earnings in the future.

Healthy Balance Sheet

  • Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.

What do we look for?

  • Does the company have a manageable level of debt.
  • Is the company able to cover its interest repayments.

3 companies meet this criteria in the Canadian market

Total Energy Services Inc. provides various products and services to the oil and natural gas industry primarily in Canada, the United States, and Australia.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: TOT's dividend (2.74%) is low compared to the top 25% of dividend payers in the Canadian market (5.67%).

  • Future Dividend Coverage

  • Stable Dividend

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Rewards

  • Trading at 66.7% below our estimate of its fair value

  • Earnings are forecast to grow 34.67% per year

  • Became profitable this year

Risks

  • Large one-off items impacting financial results

View all Risks and Rewards

PHX Energy Services Corp. provides horizontal and directional drilling technology and services to oil and natural gas exploration and development, and production companies in Canada, the United States, Russia, Albania, and the Middle East.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: PHX's dividend (7.78%) is in the top 25% of dividend payers in the Canadian market (5.67%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 15.2% below our estimate of its fair value

  • Earnings are forecast to grow 82.39% per year

  • Earnings grew by 115.7% over the past year

Risks

  • High level of non-cash earnings

  • Shareholders have been diluted in the past year

  • Significant insider selling over the past 3 months

View all Risks and Rewards

Pason Systems Inc., an energy services and technology company, provides data management systems for drilling rigs in Canada, the United States, and internationally.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: PSI's dividend (2.98%) is low compared to the top 25% of dividend payers in the Canadian market (5.67%).

  • Future Dividend Coverage

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 33.7% below our estimate of its fair value

  • Earnings are forecast to grow 16.68% per year

  • Earnings grew by 301.9% over the past year

Risks

No risks detected for PSI from our risks checks.

View all Risks and Rewards
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