3 High-Yield Canadian Oil Stocks for Income Investors

Investors in the US should not overlook Canadian stocks, many of which have high dividend yields than their US counterparts. Canadian stocks declare their dividends in Canadian dollars, which can cause some volatility in the payout when translated for US investors.

This is especially true when looking at Canadian oil stocks. Many of these Canadian stocks have high yields above 4%, while the U.S. energy sector widely has lower yields. As a result, these 3 Canadian oil stocks might be attractive for income investors.

1. Suncor Energy (SU)

Suncor Energy (NYSE:SU) is one of the largest integrated energy producers in Canada. The company is involved in all the aspects of the energy value chain, operating in three segments: Exploration & Production, Refining & Marketing, and Other. Suncor is headquartered in Calgary, Alberta.

In early August, Suncor reported (8/5/25) results for the second quarter of 2025. It posted record second-quarter production and refining volumes. It grew its production 3% over last year’s quarter and posted refinery utilization of 95%. Suncor reiterated its guidance for essentially flat production this year and a decrease in refinery utilization from 100% to 93%-97% due to maintenance.

Suncor was greatly affected by the pandemic in 2020, but the company has recovered strongly thanks to favorable oil prices and wide refining margins. Suncor expects to achieve growth thanks to the ramp-up of production at Fort Hills and Hebron and other growth projects, which enhance value within its integrated asset portfolio. The company also makes sustained efforts to reduce its operating expenses.

The integrated structure of Suncor Energy somewhat mitigates its exposure to the fluctuations of commodity prices. On the bright side, the company has a decent balance sheet, with only 50% of its assets financed through liabilities and a solid interest coverage ratio of 12.6.

SU currently yields 4.1%.

2. Canadian Natural Resources (CNQ)

Canadian Natural Resources (NYSE:CNQ) is an energy company that operates in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas liquids (NGLs), and natural gas. It is headquartered in Calgary, Alberta.

In early August, Canadian Natural Resources reported financial results for the second quarter of fiscal 2025. The company grew its production 11% over the prior year’s quarter, despite the execution of maintenance. However, the price of oil decreased. As a result, the earnings-per-share of Canadian Natural Resources declined -19%.

Canadian Natural Resources has raised its quarterly dividend by 4% this year and has now grown its dividend (in Canadian currency) for 26 consecutive years, at a compound annual growth rate of 20%. This is an admirable accomplishment for a company that belongs to the highly cyclical energy sector. The company reiterated that its dividend is covered by cash flows thanks to its low-cost reserves. Management expects 12% production growth this year, a sector-leading growth rate.

The company posted record earnings in 2021 and 2022 thanks to high prices of oil and gas. Moreover, Canadian Natural Resources grew its proved reserves by 11% in 2019, 10% in 2020, 6% in 2021, 6% in 2022, 2% in 2023 and 9% in 2024 and enhanced its reserve life index to 33 years.

As this figure is triple the average life of reserves of its peers (~11 years), it is impressive and certainly bodes well for the production growth prospects of the company. The competitive advantage of Canadian Natural Resources is the high quality of its assets, which have a long life, low decline rates and low production costs.

CNQ currently yields 5.4%.

3. Enbridge Inc. (ENB)

Enbridge (NYSE:ENB) is an oil & gas company that operates the following segments: Liquids Pipelines, Gas Distributions, Energy Services, Gas Transmission & Midstream, and Green Power & Transmission. Enbridge bought Spectra Energy for $28 billion in 2016 and has become one of the largest midstream companies in North America.

Enbridge reported its second quarter earnings results in August. The company generated revenue of US$10.8 billion during the period, which was up 31% compared to the 2024 second quarter. During the quarter, Enbridge managed to grow its adjusted EBITDA by 7% year over year. During the second quarter, Enbridge was able to generate distributable cash flows of US$2.1 billion, or US$0.96 on a per-share basis.

While distributable cash flows in 2024 were down in US Dollars, that was due to currency rate movements – results were higher in Canadian Dollars. The same holds true for Enbridge’s dividend, which was increased by 3% in Canadian Dollars, to CAD$0.9424 at the beginning of the current year. Enbridge is forecasting distributable cash flows in a range of CAD$5.50 - CAD$5.90 per share for the current year. Using current exchange rates, this equates to USD$4.11 at the midpoint of the guidance range, which would be up 7% versus 2024.

Enbridge put billions worth of projects into service over the last couple of years, and more growth projects are under construction, which includes new energy assets such as wind farms as well as hydrocarbon assets such as pipelines. According to management, growth will persist going forward, as Enbridge targets long-term cash flow per share growth of 5%-7%.

Enbridge is one of the largest pipeline operators in North America. Its vast asset footprint serves as a tremendous competitive advantage, as it would take tens of billions of dollars of investments from new market entrants if they wanted to be able to replace Enbridge’s assets. Competitive risks, therefore, are low. Due to its fee-based nature Enbridge’s business is not very cyclical, and commodity prices are mostly a pass-through item.

ENB has increased its dividend for 30 consecutive years and currently yields 5.6%.

Get the complete list of high-dividend Canadian oil stocks here

Disclosure: No positions in any stocks mentioned