Investing in high quality vitality shares throughout a interval of elevated costs ought to can help you profit from capital beneficial properties and a rising dividend. One such TSX inventory is Keyera (TSX:KEY), which affords a 4% yield in 2026.
Valued at a market cap of $12 billion, Keyera inventory has returned 155% to shareholders over the previous decade, after adjusting for dividend reinvestments.
In 2026, the Canadian vitality firm continues to report a record-breaking fee-based enterprise and a freshly closed acquisition that might meaningfully speed up earnings progress for years to come back.
Keyera Corp is my high decide for TFSA traders who need reliable revenue with out sacrificing upside.
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Keyera closed a game-changing deal
Final week, Keyera introduced the closing of its $5.3 billion acquisition of Plains’ pure fuel liquids enterprise in Canada.
- The acquisition is a landmark transaction that expands Keyera’s nationwide infrastructure platform and strengthens its already formidable built-in NGL worth chain.
- Administration expects over $100 million in annual run-rate synergies to be realized inside 12 months of closing.
- As soon as integration is full, the transaction is predicted to be mid-teens accretive to distributable money circulate per share.
Consider it this manner: the identical dividend is now backed by a a lot bigger and extra environment friendly earnings engine.
President and Chief Govt Officer Dean Setoguchi captured the chance effectively when he mentioned the acquired belongings “instantly aligned with our technique of strengthening and increasing our built-in NGL worth chain,” in line with an organization assertion.
In 2025, the Canadian dividend inventory delivered $439 million in Gathering and Processing realized margin, up from $413 million the yr earlier than. Its Liquids Infrastructure phase introduced in a file $593 million, up from $558 million in 2024. Collectively, these two segments generated over $1 billion in mixed realized margin for the primary time.
Keyera’s sturdy efficiency in 2025 displays increased throughput, rising contracted volumes at vegetation similar to Wapiti and Simonette, and a gradual ramp-up in volumes on the KAPS pipeline.
The enterprise is scaling, and the contracts underpinning it are largely take-or-pay, which means Keyera will get paid whether or not producers circulate fuel or not.
That fee-for-service mannequin is the spine of the dividend’s sturdiness.
A rising dividend
Keyera has guided for 7% to eight% annual fee-for-service EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) progress by way of 2027. The steering is backed by three already-sanctioned initiatives: two fractionation expansions on the Keyera Fort Saskatchewan facility and KAPS Zone 4.
Administration has been express about its dividend philosophy. Chief Monetary Officer Eileen Marikar famous on the corporate’s This autumn earnings name that capital allocation priorities stay constant: develop the dividend sustainably, fund sanctioned progress capital, and scale back debt towards the low finish of the two-and-a-half to a few instances internet debt-to-adjusted EBITDA goal vary.
Professional forma leverage is predicted to return to that vary by the top of 2027, giving traders a transparent runway.
Inside a Tax-Free Financial savings Account, Keyera’s 4% yield compounds with out the drag of dividend taxes. Over time, that distinction provides up meaningfully.
For TFSA traders who need regular paycheques and real long-term progress, Keyera ticks each field.
