Oil prices have rebounded sharply since February due to supply outages in Kuwait, Canada, Libya and Nigeria. Apart from supply outages, prices are also benefiting from improving fundamentals. Indeed, a decline in non-OPEC production coupled with robust demand has boosted the outlook for oil. It might therefore be a good time to consider companies focused on the energy sector, especially the ones that also offer attractive yield.
One such company is Veresen Inc. (TSX: VSN). Based in Calgary, Canada, Veresen is an energy infrastructure company. The company’s segments include Pipelines, Midstream, Power and Corporate.
VSN currently offers a dividend yield of 10.38%. Despite the challenges faced by the company due to the low price environment, it has consistently made dividend payments. Given the improving outlook for the oil market, VSN is also poised for capital appreciation.
In the last one year, VSN has fallen more than 48%. Year-to-date, though, the stock has posted gains of almost 11.60%. In the last three months as oil prices have rebounded, VSN’s performance is even more impressive. Since February 24th, the stock has gained more than 27.5%, outperforming the S&P/TSX Composite Index.
