Canadian Energy Stocks with Stellar Dividend Growth

The Canadian energy stocks on our list have some of best dividend growth rates in the small-cap energy sector

SmallCapPower | June 7, 2018: Today we have identified four Canadian energy stocks, energy sector companies, with strong historical dividend growth. Energy can be a volatile market, subject to unpredictable swings in commodity prices. Dividends can enhance returns on an investment and provide steady cash flow for the investor. Companies that raise their dividends can also receive a proportionate increase in value when it coincides with strong earnings growth.

ZCL Composites Inc. (TSX:ZCL) – $8.85
Oil Related Services and Equipment

ZCL Composites (ZCL) is a Canada-based manufacturer and supplier of fiberglass reinforced plastic (FRP) underground storage tanks. Its offerings are used in the storage of oil, gas and wastewater. The Company has three product groups: Petroleum Products, Water Products and Corrosion Products. ZCL has five plants in Canada, six in the United States and one in the Netherlands.

  • Market Cap: $273.5 Million
  • Dividend Growth Hist 5 YR: 68.8%
  • Dividend Yield 5 YR Avg: 3.0%
  • Dividend Yield: 5.8%
  • YTD Total Return: -13.3%

High Arctic Energy Services Inc. (TSX:HWO) – $3.88
Oil Related Services and Equipment

High Arctic Energy Services is a Canada-based company, which focuses on providing contract drilling, completion services, equipment rental and other oilfield services to the oil and gas industry. In Canada, its main business lines are in snubbing services, the supply of Cryogenic Liquid Nitrogen Pumping Services and equipment rentals. The Company holds distribution rights for the rental of Dura-Base mats within Papua New Guinea, where it also provides drilling support services.

  • Market Cap: $204.6 Million
  • Dividend Growth Hist 5 YR: 23.1%
  • Dividend Yield 5 YR Avg: 4.8%
  • Dividend Yield: 5.1%
  • YTD Total Return: 1.3%

Peyto Exploration & Development Corp. (TSX:PEY) – $10.26
Oil & Gas Exploration and Production

Peyto Exploration & Development is a Canada-based energy company with a focus on Western Canada. Peyto estimates that it is the fifth largest natural gas producer in Canada. Its portfolio of assets includes exploration, exploitation and development opportunities located primarily in the Deep Basin of Alberta.

  • Market Cap: $1,691.6 Million
  • Dividend Growth Hist 5 YR: 10.9%
  • Dividend Yield 5 YR Avg: 4.4%
  • Dividend Yield: 12.87%
  • YTD Total Return: -29.9%

Shawcor Ltd. (TSX:SCL) – $26.05
Oil Related Services and Equipment

Shawcor is a Canada-based energy services company. The Company’s primary offerings are in pipe coating services, flexible composite pipe, onshore and offshore pipeline corrosion and thermal protection, and ultrasonic and radiographic inspection services. As of March 2018, Shawcor had an order backlog of $459M and was in the process of bidding on $2.5B in new projects.

  • Market Cap: $1,825.1 Million
  • Dividend Growth Hist 5 YR: 9.6%
  • Dividend Yield 5 YR Avg: 1.7%
  • Dividend Yield: 2.3%
  • YTD Total Return: -3.9%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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