Monthly Dividend Stock In Focus: Cardinal Energy

Revealed on Could fifteenth, 2026 by Josh Arnold

Cardinal Power (CRLFF) has two interesting funding traits:

#1: It’s providing an above-average dividend yield of 5.8%, which is sort of six occasions the common dividend yield of the S&P 500.

#2: It pays dividends month-to-month as a substitute of quarterly.

You may obtain our full Excel spreadsheet of all month-to-month dividend shares (together with metrics that matter like dividend yield and payout ratio) by clicking on the hyperlink under:

Cardinal Power’s mixture of an above-average dividend yield and a month-to-month dividend makes it a sexy choice for particular person traders, and significantly those who depend on dividend earnings for dwelling bills.

However there’s extra to the corporate than simply these components. Hold studying this text to be taught extra about Cardinal Power.

Enterprise Overview

Cardinal Power is a Canadian oil and fuel producer that has operations primarily in Alberta and Saskatchewan, with a powerful concentrate on typical mild and medium oil.

Its operations are centered on mature, low-decline fields the place enhanced oil restoration strategies, akin to water flooding and CO₂ injection, are actively used to keep up secure manufacturing. The corporate was fashioned in 2010 and is headquartered in Calgary, Canada.

Cardinal Power manages a big stock of vertical and horizontal wells tied into company-owned infrastructure, which helps environment friendly area operations and price management.

With over 90% of manufacturing weighted to grease and pure fuel liquids (NGLs), Cardinal’s day-to-day operations are closely oil-driven, with ongoing upkeep, re-completions, and focused infill drilling forming the spine of its improvement exercise.

As an nearly pure oil producer, Cardinal Power is extremely delicate to the dramatic cycles of the oil trade. It has reported losses in 4 of the final 10 years and has exhibited a extremely risky efficiency document. There have been different years the place it produced a revenue, however solely simply above breakeven. The corporate initiated a dividend in 2014, however has lower the payout repeatedly and even briefly eradicated it over that interval.

Then again, Cardinal Power has some benefits in comparison with well-known oil producers. Most oil and fuel producers have been struggling to replenish their reserves as a result of pure decline of their producing wells.

Supply: Investor Presentation

Cardinal Power is the traditional producer with the bottom decline charge in Canada. This can be a main aggressive benefit, as the corporate must spend decrease quantities on capital bills than most of its friends to replenish its reserves. The corporate additionally continues to develop its proved and possible reserves, which definitely bodes properly for future manufacturing development.

Within the first quarter of this yr, Cardinal Power maintained basically flat manufacturing vs. the prior yr’s quarter however its earnings per share dipped 20%, from $0.15 to $0.12, primarily as a result of a lower in realized oil costs.

Cardinal posted fourth quarter and full-year earnings on March twelfth, 2026, and outcomes had been considerably combined. Web income was slightly below $80 million, which was off 12% year-over-year. File manufacturing volumes had been offset by notably decrease realized commodity costs. Manufacturing common 23,514 barrels of oil equal per day, which was up 7% year-over-year. Crude oil and NGLs made up 91% of whole manufacturing combine.

Adjusted funds movement was $34 million, reflecting weaker world pricing, partially offset by the Reford thermal venture. Diluted earnings-per-share got here to -$0.13, sharply worse than the revenue of 12 cents a yr earlier. For this yr, we count on earnings of $1.00 per share.

Development Prospects

Cardinal Power has posted one of many highest reserve development charges in its peer group in recent times.

Supply: Investor Presentation

Even higher, the corporate has ample room for future development because of some development initiatives.

Cardinal Power has supplied steering for common manufacturing of ~25,000 barrels per day this yr. If it meets its steering, it’ll submit meaningfully larger output in comparison with final yr, because of the Reford venture.

Nonetheless, when the continuing development initiatives start to contribute to the output of the corporate, they’re more likely to end in significant manufacturing development.

General, within the absence of a significant downturn, Cardinal Power can develop its earnings per share by 5% per yr on common over the following 5 years.

Then again, as an oil producer, Cardinal Power is extremely delicate to the fluctuations within the value of oil. The corporate posted document earnings per share in 2021 and 2022 because of the restoration of world oil consumption, which led the worth of oil to surge to a 13-year excessive.

The battle in Iran has pushed world vitality costs up very sharply in 2026, and Cardinal stands to be a big beneficiary.

Consequently, the earnings per share of Cardinal Power have decreased from an all-time excessive of $1.46 in 2021 and $1.42 in 2022 to $0.47 in 2024, and simply $0.09 in 2025. We count on earnings per share of roughly $1 this yr.

Notably, Cardinal Power has a rock-solid steadiness sheet. Its curiosity expense consumes simply 3% of its working earnings whereas its long-term debt is simply $60 million, which is a tiny fraction of the $1.6 billion market capitalization of the inventory.

A powerful steadiness sheet is paramount within the oil trade, as it’s doubtless to assist the corporate endure future downturns in its enterprise.

Dividend & Valuation Evaluation

Cardinal Power is presently providing an above-average dividend yield of 5.8%, which is greater than 5 occasions the 1% yield of the S&P 500. The inventory is an fascinating candidate for earnings traders, however they need to bear in mind that the dividend is way from protected as a result of dramatic cycles of the worth of oil.

Cardinal Power has a modest payout ratio of 52%, which is sustainable over the long term as long as earnings maintain up. However, because of the strong monetary place of the corporate, its dividend isn’t more likely to be lowered dramatically below present oil costs.

In reference to the valuation, Cardinal Power is presently buying and selling for about 9 occasions its anticipated earnings per share this yr. Given the excessive cyclicality of the corporate, we assume a good price-to-earnings ratio of 9.0, which is a typical mid-cycle valuation degree for oil producers.

Due to this fact, the present earnings a number of is true on the assumed truthful price-to-earnings ratio. If the inventory trades at its truthful valuation degree in 5 years, it’ll see principally no influence from the valuation.

Taking into consideration the 5.0% annual development of earnings per share, the 5.8% present dividend yield and no influence from the valuation, Cardinal Power may supply a ~10% common annual whole return over the following 5 years.

The anticipated return indicators that the inventory is an efficient long-term funding, however just for these with a excessive danger tolerance.

Closing Ideas

Cardinal Power has been thriving since 2021 because of a super surroundings of above-average oil costs. The inventory is providing an above-average dividend yield of 5.8%, and the payout ratio has moderated of late. Given its respectable development prospects and its cheap valuation, the inventory seems engaging.

Then again, the corporate has confirmed extremely susceptible to the fluctuations within the value of oil. Consequently, it’s not appropriate for traders who can’t abdomen excessive inventory value volatility.

Furthermore, Cardinal Power is characterised by low buying and selling quantity. Which means it’s laborious to determine or promote a big place on this inventory. Nonetheless, the longer vitality costs stay elevated, the higher the outlook for Cardinal.