In the current market, there are numerous sectors available for investors to consider when seeking dividend stocks with long-term growth potential. On the TSX, several energy companies have a track record of offering consistent dividends and strong capital appreciation. One notable company is an integrated energy company focused on oil and natural gas development.
Even though Cenovus Energy’s dividend yield currently stands at around 3.1%, it is neither exceptionally attractive nor unappealing at present levels. The company’s strong fundamentals, as evidenced by its recent Q2 2024 results showing significant revenue growth and robust net earnings, indicate its resilience in the face of volatile energy prices.
Despite the challenging market conditions, Cenovus’s impressive operating margins and forward-looking developments, such as the upcoming Christina Lake pipeline, suggest potential for capital appreciation in addition to the existing dividend yield. The company’s strategic positioning in the energy sector, particularly in light of increasing energy demands due to advancements in AI and other technologies, further supports its long-term growth prospects.
Overall, Cenovus appears to be a value stock with a compelling dividend that investors may want to consider adding to their portfolios, especially if its price experiences a further dip in the future.
