3 Ultra-High-Yield Energy Dividend Stocks to Buy and Hold for 2026

A high dividend yield can be attractive, but only if the underlying business has solid fundamentals and continues generating the cash flow needed to support it. That is especially true in the energy sector, where commodity prices can move quickly and expose weaker companies.

Fortunately, not every energy stock relies on the same formula. Some TSX-listed businesses have built models designed to generate income through different market environments, whether through royalties, infrastructure assets, or disciplined production growth. Those approaches tend to create more resilient cash flows and, in turn, support generous shareholder payouts for decades.

In this article, I’ll highlight three high-yield Canadian energy stocks you can buy in 2026 and hold for years to come.

A royalty stock built for monthly income

The first stock that fits well for income-focused investors is Freehold Royalties (TSX:FRU), thanks to its consistent cash flow model. As a North American energy royalty firm, it has oil and natural gas royalty interests across Canada and the United States, including exposure to major basins.

Following a 37% rally over the last year, Freehold stock recently traded at $17.15 per share, giving it a market cap of about $2.8 billion. At this market price, its dividend yield sits near 6.3%, paid monthly.

The company’s recent momentum has been helped by acquisitions and drilling activity across its royalty lands. In the first quarter, Freehold invested $19 million to acquire royalty-interest lands in the Permian Basin, while production reached 15,533 barrels of oil equivalent per day (boe/d). Its funds from operations (FFO) came in at $59 million, reflecting the strength of its asset base.

Overall, this monthly dividend stock’s long-term appeal comes from its royalty model, liquids-weighted North American asset base, exposure to high-quality U.S. oil plays, and ability to generate cash flow with limited operating capital needs.

Gibson Energy stock offers infrastructure-backed cash flow

For investors who prefer energy infrastructure, Gibson Energy (TSX:GEI) could be a great buy-and-hold stock in 2026. The company focuses on the storage, optimization, processing, and gathering of liquids and refined products, with core terminal assets in Alberta and Texas.

Gibson stock recently traded at $29.51 per share with a market cap of about $5.1 billion. Its shares are up 26.1% over the last 12 months, while its dividend yield is close to 6.1%.

Recently, the company completed the $400 million Chauvin acquisition and sanctioned the Hardisty Connection project, both of which should support future cash flow.

In the first quarter, Gibson generated infrastructure EBITDA (earnings before interest, taxes, depreciation, and amortization) of $156 million, helped by higher throughput across its major facilities.

Gibson stock remains compelling for long-term investors because of its contracted infrastructure platform, strategic terminal assets, solid balance sheet, and expanding connectivity across key North American energy hubs.

Peyto stock keeps growing production

The final stock on this list is Peyto Exploration & Development (TSX:PEY), a company known for its efficient operations. The Calgary-based company develops natural gas, oil, and natural gas liquids assets in Alberta’s Deep Basin.

After climbing 38% in the last year, Peyto stock recently traded at $25.03 per share with a market cap of about $5.1 billion. It also rewards investors with monthly dividends, with its yield currently sitting at roughly 5.8%.

Its first-quarter results were strong, with record production of 147,513 boe/d, up 10% year over year (YoY). The company’s FFO reached $293 million, while earnings totalled $171.1 million.

During the quarter, Peyto also drilled 23 wells and acquired 41 gross sections of undeveloped land, adding depth to its future drilling inventory.

Moreover, its low-cost operations, disciplined capital allocation, strong production growth, and balance sheet strength make Peyto stock really appealing for long-term investors seeking energy sector exposure.

The post 3 Ultra-High-Yield Energy Dividend Stocks to Buy and Hold for 2026 appeared first on The Motley Fool Canada.

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More reading

• 2 High-Yield Dividend Stocks That Could Be a Safer Pick for Canadian Retirees
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• My 2 Favourite Stocks for Monthly Passive Income
• 4 Dividend Stocks I’d Happily Double My Position in Today

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Freehold Royalties and Gibson Energy. The Motley Fool has a disclosure policy.