Dividend Investors: Top Canadian Energy Stocks for March

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.

CNQ stock

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.

TOU stock

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.

TRP stock

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.

TRP’s core profit for 2025 is projected to rise to between $10.7 billion and $10.9 billion, driven by increased natural gas transportation and electricity demand. The energy stock’s extensive pipeline network, including expansions in Mexico and the United States, continues to be a crucial driver of stable cash flow.

TRP recently approved a 3.3% increase in its quarterly common share dividend, raising it to $0.85 per share, translating to a forward annual dividend yield of 5.31%. With a payout ratio of 91.42%, TC Energy maintains a balance between rewarding shareholders and funding future growth projects.

BEP stock

Brookfield Renewable Partners offers a unique angle for energy-focused investors by providing exposure to the renewable energy sector. In its most recent earnings report, Brookfield announced record funds from operations (FFO) of $1.217 billion, or $1.83 per unit, for the 12 months ending December 31, 2024.

This represented a 10% increase per unit from the previous year, underscoring the energy stock’s ability to generate stable cash flow from its renewable energy assets. Brookfield continued expanding its portfolio, investing in solar, wind, and hydroelectric projects across North America, Europe, and emerging markets.

Despite reporting a net loss of $464 million due to non-cash items and higher interest expenses, the energy stock remains financially sound, with $3.14 billion in cash and a solid operating cash flow of $1.27 billion. Brookfield recently increased its quarterly distribution by 5%, bringing its forward annual dividend yield to 6.49%, further reinforcing its appeal as a long-term income-generating investment.

Of course, no investment comes without risks. Energy prices can be volatile, impacting earnings and, in turn, dividends. However, these energy stocks’ strong balance sheets, strategic growth plans, and commitment to shareholder returns make them resilient choices for investors seeking reliable income.