Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
The outlook for clean energy infrastructure is expected to receive a boost, ushering in a new era of green investment. Enbridge (TSX: ENB) is one of Canada’s most popular dividend stocks. Over the past 30 years, Enbridge shares have delivered a 1400% return to shareholders. This Canadian energy infrastructure giant pays investors an annual dividend of CAD 3.66 per share, which translates to a forward yield of 6.7%. Additionally, since 1995, the company has consistently increased its dividends at an average rate of 10% per year.
Enbridge owns and operates a diversified portfolio of cash-generating assets. Despite a challenging macro environment, Enbridge reported an adjusted EBITDA of CAD 4.33 billion for Q2 2024, up from CAD 4.0 billion in the same period last year. The company’s distributable cash flow was CAD 3.86 billion, or CAD 1.34 per share, with a payout ratio of 68%.
Enbridge expects to invest around CAD 8 billion annually in capital expenditures, which will drive future cash flow and dividend growth. While the company offers an attractive dividend yield, this article will introduce an alternative low-priced dividend stock: Secure Energy Services.
Secure Energy Services has a market capitalization of CAD 3 billion and has seen its revenue grow by 17.8% annually over the past decade, with adjusted earnings growth of 15.9%. The company provides solutions for upstream oil and gas companies in Canada and the U.S., with services in its infrastructure segment including pipeline transportation, oilfield waste management, and crude oil pipelines. Secure Energy also has environmental and fluid management operations dealing with the management and disposal of hazardous and non-hazardous waste.
Secure Energy Services pays an annual dividend of CAD 0.40 per share, resulting in a dividend yield of 3.34%. Over the past 12 months, the company reported free cash flow of CAD 249 million, indicating a payout ratio of less than 40%.
Bay Street analysts expect Secure Energy’s adjusted earnings to increase from CAD 0.65 per share in 2024 to CAD 0.82 in 2025. The stock has an expected price-to-earnings ratio of 14, making it relatively cheap and trading 22% below the general target price for September 2024.
