Because America is currently the largest oil-producing country in the world, many investors tend to overlook our neighbor to the north, Canada, which itself is a top-five oil producer. That's causing them to miss out on some excellent oil-fueled dividend stocks.

Several Canadian energy companies offer income investors a yield north of 4%. Even better, they have a history of consistently increasing their payouts, which should continue in the coming years. That's why dividend seekers should take a closer look at Canada's oil patch since it offers several appealing income opportunities. Here are five top options that income-focused investors won't want to miss.

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Suncor Energy

Suncor Energy (NYSE:SU) currently yields 4%. What stands out about the Canadian oil producer's dividend is that it has grown in each of the past 17 consecutive years. That trend is likely to continue for the next several years. That's because Suncor believes it can increase its cash flow per share by about a 5% annual rate through 2023, which assumes no improvement in oil prices. Given its strong balance sheet and low oil-price breakeven level, it can use that growing cash flow to continue increasing its dividend.

Canadian Natural Resources

Canadian Natural Resources (NYSE:CNQ) has also richly rewarded its investors over the years. The country's leading oil and gas producer has boosted its payout in each of the past 19 consecutive years, growing it by a sector-leading rate of more than 20% during that timeframe. The company most recently gave its investors a 12% raise for 2019, which helped push its current yield up to 4.1%. That growth trend should continue in the coming years. Several factors fuel that view, including Canadian Natural's low production costs and strong balance sheet, which enhance its ability to continue growing its cash flow to support further dividend increases.

TC Energy

TC Energy (NYSE:TRP) has also consistently increased its dividend for the past 19 consecutive years. Overall, the pipeline giant has grown its payout by a 7% compound annual rate during that time frame. It expects that growth to continue through at least 2021, with a target to increase its 4.5%-yielding payout by 8% to 10% per year during that period, fueled by one of the largest backlogs of expansion projects in the pipeline sector. Meanwhile, it has several more projects in development, which it believes could allow it to grow its payout by 5% to 7% per year after 2021.

Pembina Pipeline

Pembina Pipeline (NYSE:PBA) doesn't quite have the dividend growth track record of the others on this list. However, the Canadian pipeline company has still been a great dividend stock over the years. It has increased its payout in each of the past eight years, including by 5.3% in early 2019. The company has already promised another 5% increase in 2020, fueled by a needle-moving acquisition. Meanwhile, it has several billion dollars of expansion projects under construction and in development, which should give it the fuel to keep increasing its 4.9%-yielding dividend for many years to come.


Enbridge (NYSE:ENB) might be the best dividend stock of the bunch. Not only has the pipeline behemoth paid a dividend for the past 64 years running, but it has also increased it for the past 24 consecutive years. Overall, it has grown its payout at a 12.1% compound annual rate during the previous two decades. Enbridge expects to provide its investors with another double-digit raise next year, fueled by a large slate of expansion projects. More growth is likely to come after that, as the company anticipates it can increase its earnings by 5% to 7% annually post-2020, which should support a similar growth rate in its 5.9%-yielding dividend.

Great income growth stocks for the long haul

These five Canadian energy companies have done an excellent job rewarding income-focused investors over the years. Not only do they currently offer investors yields above 4%, but they also expect to increase those high-yielding payouts in the future. That's why income-focused investors won't want to continue overlooking the excellent options found in Canada's oil patch.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.