Canadian Oil and Gas Stocks Boast High Yields and Stability: Top Picks for 2025 Investors

Canadian Oil and Gas Stocks Boast High Yields and Stability: Top Picks for 2025 Investors
Published on: Jan 22, 2025

In recent years, dividend-paying Canadian oil and gas stocks have experienced significant volatility. However, analysts remain optimistic about the industry, with signs pointing toward a multi-year bull market for Canadian oil and gas companies. Despite market turbulence, leading oil and gas stocks listed on the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) continue to perform well, offering attractive dividends to investors.

Robust dividend payouts are often seen as a sign of financial health, showcasing management’s confidence in the company’s performance. For investors, dividends not only provide a steady stream of income but also allow for increased equity holdings over time. It’s important, however, to look beyond just dividend yields when selecting Canadian oil and gas dividend stocks. Investors should also evaluate key fundamentals like debt levels, profitability, and cash flow strength.

The following Canadian oil and gas dividend stocks boast dividend yields of over 7% and debt-to-equity ratios of 0.5 or lower (data as of January 16, 2025).

1. Cardinal Energy (TSX: CJ)

  • Monthly dividend: C$0.06 per share
  • Dividend yield: 10.6%
  • Debt-to-equity ratio: 0.08
  • Market capitalization: C$1.08 billion

Cardinal Energy, headquartered in Calgary, focuses on low-decline light, medium, and heavy oil assets in Alberta and Saskatchewan. The company also produces liquid and conventional natural gas, ensuring stable output and cash flow.

2. InPlay Oil (TSX: IPO)

  • Monthly dividend: C$0.015 per share
  • Dividend yield: 10.11%
  • Debt-to-equity ratio: 0.2
  • Market capitalization: C$160.41 million

InPlay Oil, based in Calgary, specializes in the exploration, development, and production of light oil and natural gas in Alberta. Its core assets include fields in Pembina and Willesden Green, where it employs advanced horizontal drilling and multi-stage fracturing techniques. InPlay’s focus is on maximizing recovery while minimizing costs.

3. Petrus Resources (TSX: PRQ)

  • Monthly dividend: C$0.01 per share
  • Dividend yield: 8.33%
  • Debt-to-equity ratio: 0.2
  • Market capitalization: C$180.16 million

Petrus Resources is a Calgary-based junior oil and gas company with a large inventory of low-risk development assets in Alberta. Operating in regions such as Ferrier, North Ferrier, and Thorsby, the company aims for long-term growth through organic expansion and strategic acquisitions.

4. Surge Energy (TSX: SGY)

  • Monthly dividend: C$0.043 per share
  • Dividend yield: 8.18%
  • Debt-to-equity ratio: 0.31
  • Market capitalization: C$613.33 million

Surge Energy, also headquartered in Calgary, focuses on conventional light and medium oil development in Western Canada. Key assets include the Sparky area and Southeast Saskatchewan—both considered premier growth zones for conventional oil.

5. Peyto Exploration & Development (TSX: PEY)

  • Monthly dividend: C$0.11 per share
  • Dividend yield: 7.78%
  • Debt-to-equity ratio: 0.5
  • Market capitalization: C$3.36 billion

Peyto Exploration & Development operates unconventional natural gas exploration and production in Alberta’s Deep Basin. Core assets include Cardium, Spirit River, and Notikewin formations. In Q4 2023, Peyto completed its acquisition of Repsol Canada Energy Partnership, contributing to significant production growth.

These companies exemplify strong financial management and offer reliable dividend payouts, making them attractive options for investors seeking high-yield, stable investments in the oil and gas sector.

Canadian Stocks Dividend Yielding Stocks Natural Gas Oil & Gas