The Canadian energy sector finished August 30 in the red as the broader S&P/TSX Composite Index shed 49 points. Fears of the Delta variant have put downward pressure on oil and gas prices, and on top energy stocks. However, I’m still looking to add these equities on the dip. The resurgence in COVID-19 cases in a concern, but policymakers will be forced to find new solutions that will not involve lockdowns and disrupting restrictions.
Pembina Pipeline (TSX:PPL)(NYSE:PBA) is the first energy stock I’m excited about owning right now. This Calgary-based company provides transport and midstream services for the energy industry. Its shares have climbed 27% in 2021. However, the energy stock has dropped 5% in the month-over-month period.
In Q2 2021, Pembina downgraded its adjusted EBITDA guidance. However, volumes across its business continued to rise. Total revenue rose to $3.99 billion in the first six months of 2021 – up from $2.93 billion in the previous year. Best of all, Pembina offers a monthly dividend of $0.21 per share. That represents a tasty 6.4% yield.
Suncor Energy (TSX:SU)(NYSE:SU) is one of the largest integrated energy companies in Canada. It passed through a difficult 2020 due to broader headwinds but has since enjoyed a strong rebound. Profit swung to $868 million in the second quarter of 2021. The stock has plunged 3.4% month over month. Suncor possesses an attractive P/E ratio of 23. Moreover, it last paid out a quarterly dividend of $0.21 per share. That represents a 3.5% yield. Suncor is a top energy stock to snag on the dip.
