Many investors seeking high yields may have a high tolerance for risk, similar to those in a casino. However, those with lower risk appetites or who cannot afford to lose money may find chasing dividends for larger passive income streams to be ill-advisable.
Within the Oil & Gas E&P industry, there are appealing energy stocks such as PetroTal, Parex Resources, and Cardinal Energy that operate in different jurisdictions. Despite their enticing dividend yields, caution should be exercised when considering them, especially for those who are uncomfortable with high-risk investments.
PetroTal, the largest crude oil producer in Peru, is a company based in Houston, USA that pays a 13.8% dividend. With a payout ratio of 57.1%, the quarterly dividends are considered generally safe and sustainable, making it an attractive investment option.
Parex Resources, an independent exploration and production company with operations in Colombia, offers a lucrative 11.7% dividend. Despite trading at a deep discount, the company’s recent earnings results have been less than satisfactory, contributing to a year-to-date loss of 44%.
Cardinal Energy, a Western Canada-focused oil and natural gas company, has seen revenue and earnings rise in the first half of 2024. With a 11.1% dividend yield and a monthly payout frequency, it is considered a top-performing small-cap stock among the 30 top-performing TSX stocks.
In conclusion, Cardinal Energy is considered the better choice among Canada’s highest-paying dividend stocks due to its performance and affordability, offering investors the opportunity to receive passive income on a monthly basis.
