Canadian oil and gas stocks have faced a rollercoaster ride over the past few years.
However, analysts remain optimistic about the global oil sector. The top oil and gas stocks on the TSX and TSXV have been posting gains despite volatile market conditions, and many companies offer strong payouts for dividend investors.
Canadian energy stocks that pay dividends — a portion of corporate profits shared on a specific timeline — are attractive to those who prefer a long-term approach to wealth creation. Dividend investing allows for a steady flow of income and the opportunity to increase equity holdings.
Investors should look for stocks with high dividend yields, which is based on annual dividend income per share divided by price per share. For example, if a dividend stock has a share price of C$10.00 and pays a C$0.25 dividend every quarter, it has a dividend yield of 10 percent. Of course, as share prices fluctuate, so too will dividend yields, so investors should perform due diligence when choosing which company to invest in.
The ability to offer a dividend payment points to the financial health of a company, making it a point of pride for companies in the oil and gas industry.
1. InPlay Oil (TSX:IPO)
Dividend yield: 12.4 percent
Debt-to-equity ratio: 0.61
Market cap: C$343.25 million
InPlay Oil is an oil and natural gas company with operations concentrated in West Central Alberta, Canada.
In its financial and operating highlights for its Q3 period ending September 30, 2025, the company reported that its average production for the quarter was above expectations at 18,970 barrels of oil equivalent per day (boe/d), more than double its average output of 8,206 boe/d in the third quarter of the previous year.
InPlay will pay a monthly dividend of C$0.09 per share on January 30, 2026, to shareholders of record as of January 15.
2. Meren Energy (TSX:MER)
Dividend yield: 11.3 percent
Debt-to-equity ratio: 0.41
Market cap: C$1.21 billion
Meren Energy is an full-cycle exploration and production oil and gas company with offshore assets in Nigeria, Namibia, South Africa and Equatorial Guinea. This includes interests in producing and development assets in Nigeria operated by oil majors.
For the period ending September 30, 2025, Meren reported average daily working interest and entitlement production of 31,100 boe/d and 35,600 boe/d respectively, which the company said was in line with its expectations.
Meren Energy paid a quarterly dividend of US$0.0371 per share on December 9, 2025, to shareholders of record at the close of business on November 21, 2025.
3. Alvopetro Energy (TSXV:ALV)
Dividend yield: 8.63 percent
Debt-to-equity ratio: 0.08
Market cap: C$236.92 million
Alvopetro Energy is an oil and gas exploration and production company with assets in Brazil and Canada.
In its financial and operating highlights for the period ending September 30, 2025, the company reported average daily sales of 2,343 boe/d. Its sales were up 11 percent from Q3 2024 and down 4 percent from Q2 2025.
Alvopetro Energy paid a base quarterly dividend of US$0.10 per common share and a special dividend of US$0.02 per common share on January 15, 2026, to shareholders of record at the close of business on December 31, 2025.
4. Parex Resources (TSX:PXT)
Dividend yield: 8.63 percent
Debt-to-equity ratio: 0.01
Market cap: C$1.72 billion
Parex Resources is the largest independent oil and gas exploration and production company in Colombia.
For the period ending September 30, 2025, Parex reported average oil and natural gas production of 43,953 boe/d, up 3 percent compared to the prior quarter and down 7.6 percent year-over-year. Production rose further in October, averaging 49,300 boe/d, which the company said supports it reaching its full year 2025 average production guidance of 43,000 to 47,000 boe/d.
Parex paid a quarterly dividend of C$0.385 per share on December 15, 2025, to shareholders of record on December 8, 2025.
5. Cardinal Energy (TSX:CJ)
Dividend yield: 8.54 percent
Debt-to-equity ratio: 0.24
Market cap: C$1.36 billion
Last on this list of top Canadian oil and gas dividend stocks is Cardinal Energy is an oil-focused company with operations centered on low-decline light, medium and heavy oil in Alberta and Saskatchewan, Canada. It also produces liquid and conventional natural gas.
Cardinal reported that its Q3 2025 production totaled 20,772 boe/d, down 2 percent from the same quarter in the previous year as the company continued to focus its capital on completing the Reford thermal project. The project has since entered production.
Cardinal Energy will pay a monthly dividend of C$0.06 per share on February 17, 2026, to shareholders of record on January 30, 2026.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
