Canadian oil stocks have proven over the past decade that they can navigate downturns in commodity prices. Canadian oil stocks also tend to pay higher dividends than many U.S.-based oil stocks, making them potentially more appealing for income investors.

Valuations have also remained quite low recently, boosting their respective total return profiles as a result. This article will discuss 3 high dividend Canadian oil stocks that may be attractive for income investors.

Tamarack Valley Energy (TNEYF)

Tamarack Valley Energy Ltd. is a Canadian energy company. Shares are dual-listed in Canada under the ticker “TVE” and the U.S. with the over-the-counter ticker “TNEYF”.

The company’s base reporting currency is Canadian Dollars, but this report will use U.S. Dollar figures except when otherwise noted. Tamarack Valley Energy has long operated oil and gas assets primarily in the province of Alberta.

On May 7th, Tamarack Valley Energy reported its Q1 2025 results. Earnings per share of nine cents were a significant improvement from the five cent loss reported for the same period of 2024. The increase was due to both better production volumes and higher realized energy prices.

The company reported 67,697 total barrels of energy a day in production for Q1, up 9% year-over-year. Meanwhile, the company realized significantly higher prices on crude oil, including $92 CAD ($67) per barrel for its light oil production.

The company’s more recent M&A has been fairly successful, building up the company’s production base tremendously and generating benefits of scale. However, given the company’s long history of unprofitability and high correlation to oil and natural gas prices, future earnings have a wide range of potential outcomes. We are forecasting flat earnings per share for the foreseeable future, and we expect a roughly flat dividend payout as well. 

The company pays a monthly dividend. The payout is currently CAD 0.0127 cents per share per month. The company increased its dividend by 1.6% from the old payout of CAD 0.0125 cents per share per month in October 2024, thus keeping the company’s Canadian Dollar-based annual dividend growth streak intact. Shares are currently yielding 4.1%.

Whitecap Resources (SPGYF)

Whitecap Resources is a Canadian energy company engaged in the acquisition, development, and production of oil and natural gas across Western Canada. Whitecap operates through four core regions: Northern Alberta & British Columbia, Central Alberta, Eastern Saskatchewan, and Western Saskatchewan.

It markets its production domestically and into the U.S., with exposure to benchmark pricing through various sales channels. It pays dividends on a monthly basis. It reports its financials in CAD. All figures in this report have been converted to USD unless otherwise noted.

On April 23rd, 2025, Whitecap Resources reported its first-quarter results for the period ending March 31st, 2025. For the quarter, revenue was about $678 million, an increase from $625 million in Q1 2024. Net revenue after royalties came in at $564 million.

The change was influenced by modest commodity price dynamics and realized gains of $9.86 million on commodity contracts, although unrealized losses were not detailed in the quarterly release. Operating income before taxes was about $397 million, up from $347 million last year.

In 2023 and 2024, EPS declined from peak levels as oil prices moderated, differentials widened, and inflation pushed up costs. Nevertheless, Whitecap remained profitable, due to its larger production base and improved operational leverage. Moving forward, we forecast an annual decline of 3% in EPS from its 2025 levels, due to the possibility of weak oil prices, potential FX headwinds, and a relatively shaky macro environment. We have also assumed a 1% growth rate per year on the dividend, as we don’t believe management will be aggressive with dividend hikes considering the current outlook.

Whitecap stock yields over 8%.

Freehold Royalties (FRHLF)

Freehold Royalties is a Canadian energy company. Shares are dual-listed in Canada under the ticker “FRU” and the U.S. with the over-the-counter ticker “FRHLF”. The company’s base reporting currency is Canadian Dollars, but this report will use U.S. Dollar figures except when otherwise noted.

Freehold Royalties does not own upstream oil production facilities directly. Rather it partners with operators, providing upfront cash in return for a cut of future oil and gas production volumes. Freehold currently has about 360 royalty partners and has exposure to more than 7 million gross acres of land across the U.S. and Canada.

The company’s top three production areas are the Midland and Eagle Ford basins in the U.S. along with Canadian heavy oil production in the province of Alberta.

On May 14th, 2025, Freehold Royalties reported its Q1 2025 results. The company’s top-line revenues increased nicely, rising to C$91 million from C$74 million in the same quarter of 2024.

As a result of the dilution and increased interest costs, earnings per share of 23 cents per share CAD in Q1 2025 were unchanged versus the same period of last year despite the jump in revenues.

Royalty companies often base their payouts on cash flows, rather than accounting earnings. This makes some sense, as significant costs such as amortization of royalty streams are a non-cash expense. The current dividend is 9 cents per month in Canadian Dollars. That works out to C$1.08 per year, or about $0.75 per U.S. share, subject to exchange rate volatility. We believe the current dividend can be maintained at current oil prices but is vulnerable in a recession.

FRHLF currently yields 8%.