1.TransAlta Corp
TA-PH.TO (TSX)
TransAlta Corp stands out in the energy sector, gaining attention from analysts for its promising risk-reward dynamics despite recent underperformance. With a robust dividend yield of 6.73% and a one-year return of 7.34%, it offers an attractive opportunity for investors seeking reliable income from a company that analysts rate as a Moderate Buy, outperforming other utilities.
Pros:
- Positive analyst outlook
- Diverse energy generation portfolio
Cons:
- Recent underperformance
- Lower rating compared to peers
2.TC Energy
TRP.TO (TSX)
Emphasizing its strong growth potential, TC Energy is a leading midstream energy stock touted for a promising outlook through 2026, with expected EBITDA growth of 5-7% until 2028. With a solid dividend yield of 4.50% and a 12-month return of 12.94%, investors can find value in its reliable income and defensive growth strategy, particularly with nuclear exposure from Bruce Power. Analysts have rated the stock a Moderate Buy, with a price target suggesting a 13% increase from its current value, solidifying its position as a top pick for investors seeking stability.
Pros:
- Strong EBITDA growth outlook
- Defensive growth pick
Cons:
- Market volatility risk
- Dependence on energy sector performance
3.Keyera Corp
KEY.TO (TSX)
Keyera Corp stands out as a reliable choice in the midstream sector, offering a dividend yield of approximately 4.80% and demonstrating strong cash flow stability. Analysts favor Keyera, awarding it an "Outperform" rating from RBC Capital, which speaks to its potential for dividend stability and growth. With a market cap of CAD 9.55 billion, Keyera has shown impressive long-term performance, boasting a 64.54% return over the past five years.
Pros:
- Stable cash flows
- Top pick for dividend stability
Cons:
- Recent underperformance
- Market cap decrease
Final Words
As you consider investing in energy stocks this January, TC Energy stands out as a solid option with its promising growth outlook and robust dividend yield. Take time to compare your options and conduct thorough research to align your investment choices with your financial goals.
Frequently Asked Questions
TC Energy is a leading midstream energy stock with a strong outlook for 2026, showing an expected EBITDA growth of 5-7% through 2028. It operates a vast network of natural gas pipelines and has nuclear exposure via Bruce Power.
The current dividend yield of TC Energy is approximately 4.50%, with the next dividend payment being $0.8500 scheduled for January 30, 2026.
In the past year, TC Energy has achieved a return of 12.94%. Over a longer term, it has shown impressive growth with a 5-year return of 38.51% and a 10-year return of 66.35%.
Yes, TC Energy has been identified as a top pick for defensive growth by BMO, making it an attractive option for investors seeking stability in the energy sector.
When investing in energy stocks, consider factors such as the company's growth potential, dividend yield, market conditions, and your own risk tolerance. Diversification within the energy sector can also help mitigate risks.
Investing in energy stocks can involve risks such as fluctuating oil and gas prices, regulatory changes, and geopolitical factors. It's important to stay informed about market trends and company performance to make well-informed investment decisions.
