Financial Insights That Matter
Written by Amy Legate-Wolfe at The Motley Fool Canada
Dividend investors often look to the energy sector for reliable income and steady growth, and as March unfolds, several Canadian energy stocks stand out as strong contenders. Among them, Canadian Natural Resources (Tsx: cnq), Tourmaline Oil (Tsx: Tou), TC Energy (TSX:TRP), and Brookfield Renewable Partners (TSX:BEP.UN) offer a combination of solid dividends, resilient business models, and promising future outlooks.
Canadian Natural Resources continues to be a powerhouse in the Canadian energy sector, known for its diversified production across oil sands, conventional oil, and natural gas. In its latest earnings report, CNQ posted strong results with net income of $7.59 billion for the trailing twelve months, supported by revenue of $35.74 billion.
The energy stock has been strategically expanding its production capacity — most notably with the acquisition of Chevron‘s oil sands and shale assets for $6.5 billion in late 2024. This acquisition boosted CNQ’s production potential significantly, allowing the energy stock to forecast a 12% production increase in 2025 while raising capital spending by 13.5%.
With these moves, CNQ has positioned itself to benefit from higher energy demand while maintaining its reputation as a reliable dividend payer. The energy stock currently offers a forward annual dividend yield of 5.01%, reflecting its commitment to returning value to shareholders.
Tourmaline Oil remains Canada’s largest natural gas producer and continues to reward investors through both regular and special dividends. In its most recent earnings, Tourmaline reported revenue of $4.48 billion for the trailing 12 months. Quarterly revenue declined by 26.9% year over year due to softer natural gas prices.
However, the energy stock’s net income grew by 29.3% over the same period, demonstrating efficient cost management and resilience amid market fluctuations. Tourmaline’s profitability remains impressive, with an operating margin of 52.69% and a return on equity of 11.46%.
The energy stock maintains a forward annual dividend of $1.40 per share, yielding approximately 2.01%. Yet the real appeal lies in its history of issuing special dividends when cash flow allows. Given the anticipated rise in natural gas demand, particularly as more LNG export facilities come online, Tourmaline appears well-positioned to continue its streak of strong shareholder returns.
TC Energy, a stalwart in the North American pipeline and energy infrastructure space, reported solid fourth-quarter 2024 results. The energy stock’s net income attributable to common shares reached $1.1 billion, or $1.03 per share. Meanwhile, revenue rose 2% year over year to $3.58 billion.
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