Why Imperial Oil is a Top Dividend Pick in the Canadian Energy Sector

Imperial Oil Limited (NYSE:IMO) is included among the 11 Best Canadian Dividend Stocks to Buy Now.

Imperial Oil Limited (NYSE:IMO) functions as a fully integrated energy company, with operations spanning upstream production, refining, and retail. As the largest petroleum refiner in Canada, the company also benefits from the backing of Exxon Mobil, which holds nearly a 70% ownership stake. This strong connection provides access to significant financial resources and international expertise. Its integrated structure allows the company to maintain more stable earnings despite fluctuations in oil prices.

Imperial Oil Limited (NYSE:IMO) reported strong earnings in the first quarter of 2025. The company noted that its Upstream segment continued to gain from improved transportation capacity and reduced heavy oil differentials. Meanwhile, profitability in the Downstream segment remained strong, supported by the inherent structural strengths of the Canadian market. Its cash position also remained stable. The company generated C$1.52 billion in operating cash flow during the quarter. In addition, it returned C$307 million to shareholders through dividends, which showed its commitment to returning value.

Imperial Oil Limited (NYSE:IMO) currently offers a quarterly dividend of C$0.72 per share, having raised it by 20% in January this year. This was the company’s 31st consecutive year of dividend growth, which makes it one of the best Canadian dividend stocks. The stock supports a dividend yield of 2.57%, as of July 15.

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Disclosure: None.