Top Canadian Pipeline Stocks to Buy in March 2025

ByDan Kent Published On:

Key takeaways

Reliable income and stability – Pipeline stocks are known for their steady cash flows and strong dividend yields, making them a favorite among income investors looking for long-term stability.

Resilient despite energy price swings – Unlike oil producers, pipelines operate on long-term contracts and fee-based revenues, insulating them from the direct impact of commodity price volatility.

Regulatory and transition challenges ahead – While pipelines remain essential for energy transportation, regulatory hurdles and the shift toward renewable energy present long-term challenges that companies must navigate.

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Pipeline companies in Canada, known for their consistent returns and dependable dividends, have become a favored investment choice among numerous investors. These corporations run pipelines that carry oil and gas nationwide, earning revenues from the usage fees for their infrastructure.

The Toronto Stock Exchange (TSX) is home to several pipeline companies amongst Canadian stocks that offer investors exposure to this sector.

One of the most significant advantages of investing in pipeline stocks is their ability to generate stable cash flows and not be as reliant on oil prices. These companies typically have long-term contracts with their customers, providing a predictable revenue stream.

Despite their benefits, pipeline stocks have faced some challenges in recent years. Environmental concerns and opposition to new pipeline projects have increased scrutiny and regulatory hurdles.

However, many pipeline companies have adapted to these challenges by investing in renewable energy and reducing their carbon footprint. As a result, pipeline stocks remain a viable investment option for those seeking a reliable source of income.

They offer attractive dividend yields for their shareholders, and many are Dividend Aristocrats.

In this article, I’ll dig into some of the best pipeline stocks in Canada.

The best Canadian pipeline stocks today

Canada’s largest pipeline operator

Enbridge (TSE:ENB)

Enbridge is North America’s largest pipeline company, transporting crude oil, natural gas, and natural gas liquids across Canada and the U.S. With a vast network of pipelines and storage facilities, Enbridge plays a critical role in North America’s energy infrastructure. It also has growing investments in renewable energy, balancing traditional oil transportation with future-focused projects.

P/E: 20.9

5 Yr Revenue Growth: -2.0%

5 Yr Earnings Growth: 13.3%

5 Yr Dividend Growth: 4.9%

Yield: 5.9%

  • Massive and irreplaceable pipeline network with stable cash flow
  • Long-term contracts provide steady revenue, insulating it from oil price swings
  • Consistent dividend growth, making it a top choice for income investors
  • Expansion into renewable energy, including offshore wind projects
  • Strong regulatory and political relationships to support infrastructure growth
  • Diversified business model with natural gas distribution and storage
  • Dividend Growth Sustainability – Enbridge has a long history of increasing payouts, but high debt levels require careful management.
  • Pipeline Expansions & Approvals – Projects like the Line 3 replacement impact future growth potential.
  • Energy Transition Strategy – Expanding into renewables and natural gas to stay relevant in a shifting energy landscape.
  • Regulatory Environment – Government policies on fossil fuels and pipeline expansion could impact operations.
  • Regulatory Hurdles – Opposition to new pipelines remains a challenge.
  • Debt Levels – Significant borrowing could be a concern if interest rates rise.
  • Commodity Demand Trends – A long-term decline in oil use could reduce the need for pipelines.
  • Operational Risks – Pipeline spills or environmental incidents could damage its reputation.

Major North American pipeline and energy infrastructure company

TC Energy (TSE:TRP)

TC Energy operates one of North America’s largest networks of natural gas and crude oil pipelines, stretching from Canada to the U.S. and Mexico. The company also owns power generation assets, including nuclear and renewable energy projects. Its stable cash flows make it a strong dividend payer, but project delays and regulatory challenges can cause volatility.

P/E: 13.2

5 Yr Revenue Growth: 2.3%

5 Yr Earnings Growth: -7.6%

5 Yr Dividend Growth: 5.3%

Yield: 5.7%

  • Critical infrastructure for North American energy, with 93,000 km of pipelines
  • Heavy focus on natural gas transportation, a cleaner fossil fuel
  • Long-term contracts provide steady cash flow for dividends
  • Diversification into power generation, including nuclear and renewables
  • Massive scale makes it a key player in energy security
  • Strong potential for future LNG (liquefied natural gas) demand growth
  • LNG Export Demand – Growing demand for Canadian natural gas exports could benefit TC Energy.
  • Dividend Stability – Investors rely on TRP for steady payouts, but debt levels must be monitored.
  • Pipeline Expansions – Delays or cancellations (like Keystone XL) can impact future growth.
  • Shift to Renewables – Investing in clean energy projects to stay ahead of industry trends.
  • Regulatory Delays – Permitting issues can slow pipeline expansion projects.
  • High Capital Expenditures – Major projects require significant investment, impacting free cash flow.
  • Legal and Environmental Challenges – Public opposition to new pipelines remains a risk.
  • Interest Rate Sensitivity – Rising rates could make borrowing more expensive.

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Midstream oil and gas infrastructure leader

Pembina Pipeline Corporation (TSE:PPL)

Pembina Pipeline provides transportation, storage, and processing services for oil and natural gas liquids across Canada and the U.S. With a strong dividend track record and a history of disciplined capital allocation, it is a top choice for income-focused investors. Pembina also has a growing presence in LNG and petrochemicals, adding long-term growth potential.

P/E: 29.4

5 Yr Revenue Growth: 1.3%

5 Yr Earnings Growth: -17.3%

5 Yr Dividend Growth: -10.2%

Yield: 3.1%

  • High-quality midstream assets with long-term contracts
  • Consistent dividend payer with a focus on shareholder returns
  • Well-diversified revenue streams, including pipelines, storage, and gas processing
  • Expansion into LNG and petrochemicals enhances future growth potential
  • Strong cash flow generation with relatively low commodity price exposure
  • History of disciplined capital investments to maximize returns
  • LNG Market Growth – Pembina is positioned to benefit from growing demand for LNG exports.
  • Dividend Growth – A stable cash flow supports consistent dividend increases.
  • Project Expansions – New pipeline and storage projects will drive future earnings.
  • M&A Opportunities – Pembina has a track record of strategic acquisitions that enhance its business.
  • Regulatory Uncertainty – Pipeline approvals remain a challenge in Canada.
  • Commodity Market Fluctuations – Lower demand for oil and gas could impact volumes.
  • Competition in Midstream Sector – Other pipeline companies are expanding their footprint.
  • Execution Risk on Growth Projects – Cost overruns or delays could impact profitability.

Midstream energy company specializing in natural gas processing

Keyera (TSE:KEY)

Keyera focuses on natural gas processing, transportation, and storage, making it a critical part of Canada’s energy infrastructure. Unlike pure pipeline operators, Keyera’s business includes gas liquids fractionation and storage services, which provide diversification. It is known for its steady dividends and strong operational efficiency.

P/E: 71.5

5 Yr Revenue Growth: 25.8%

5 Yr Earnings Growth: 23.7%

5 Yr Dividend Growth: 30.5%

Yield: 1.8%

  • Leading player in natural gas processing and storage
  • Strong dividend yield supported by stable cash flows
  • Expanding role in the energy transition with cleaner fuel investments
  • Well-diversified across midstream services, reducing risk from oil price fluctuations
  • Positioned for growth with new infrastructure projects
  • Focus on disciplined capital spending to maintain strong financial health
  • Natural Gas Demand – Growing LNG exports and cleaner fuel demand could benefit Keyera.
  • Dividend Growth Potential – Investors value its steady payouts and financial discipline.
  • Infrastructure Expansion – Investments in storage and processing facilities will drive future growth.
  • ESG and Energy Transition – Expanding into lower-carbon energy solutions to stay competitive.
  • Regulatory and Environmental Hurdles – Government policies could impact future projects.
  • Commodity Price Sensitivity – Although less exposed than producers, natural gas price swings still matter.
  • Competition in the Midstream Space – Rival companies could impact growth opportunities.
  • Capital Intensity – Large infrastructure projects require significant investment.

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What are pipeline stocks?

Pipeline stocks are shares of companies that own and operate pipelines for transporting oil, gas, and other energy products. These companies generate revenue by charging fees for using their channels, which are essential for transporting energy products from production sites to refineries and distribution centers.

In Canada, pipeline stocks are traded on the Toronto Stock Exchange (TSX). They are an essential part of the energy sector. Some of the largest pipeline companies in North America are Canadian, including Enbridge, TC Energy, and Pembina Pipeline.

Importance of pipeline stocks in Canada

Canadian pipeline stocks are essential for several reasons. First, they play a crucial role in the Canadian economy by transporting energy products to domestic and international markets. We rely heavily on the oil and gas industry to drive our GDP.

Second, they allow investors to invest in a stable and profitable industry.

Pipelines and Canadian energy stocks are critical in Canada because of the country’s large oil and gas reserves. Oil producers are very popular here (click here to see our post on the best Canadian oil stocks).

Dominant players like Canadian Natural Resources and Imperial Oil produce millions of barrels daily, fueling the global economy.

Investing in Canadian pipeline stocks can be an excellent way to diversify a portfolio and gain exposure to the energy sector. However, like all investments, pipeline stocks carry regulatory and environmental risks as we move toward a greener future.

Who is the largest pipeline company in Canada?

Enbridge Inc. is the largest pipeline company in Canada. It operates a pipeline network spanning more than 17,000 miles (27,000 kilometres) across North America.

Although TC Energy’s overall pipeline network is larger in terms of total kilometres, Enbridge is nearly twice the size on a market capitalization basis.

Enbridge was founded in 1949 and has since become one of North America’s largest energy infrastructure companies. The company’s pipeline transports more than three million barrels of crude oil and natural gas liquids daily.

Enbridge’s pipeline network is divided into two main segments: liquid pipelines and gas pipelines. The liquids pipeline segment includes pipelines transporting crude oil, natural gas liquids, and refined petroleum products across North America.

The gas pipeline segment includes pipelines transporting natural gas across Canada and the United States.

In addition to its pipeline network, Enbridge also owns and operates several other energy infrastructure assets, including natural gas processing plants, storage facilities, and renewable energy projects.

What are the largest pipelines in the US?

Now that we’ve discussed the best pipeline stocks in Canada, you may be wondering about some of the largest pipelines in the United States and whether these Canadian companies operate them.

When it comes to the largest pipelines in the US, several come to mind. These pipelines transport vast amounts of oil and natural gas across the country. Here are some of the largest pipelines in the US. Keep in mind, they’re in no particular length.

Trans-Alaska Pipeline System (TAPS)

The Trans-Alaska Pipeline System (TAPS) is one of the largest pipelines in the US. It stretches 800 miles from Prudhoe Bay on Alaska’s North Slope to the port of Valdez on the southern coast. The pipeline was completed in 1977 and has since transported over 17 billion barrels of oil.

Colonial Pipeline

The Colonial Pipeline is the largest refined products pipeline in the US, stretching over 5,500 miles from Texas to New York. The pipeline transports gasoline, diesel fuel, and jet fuel to various markets in the eastern and southern United States.

Keystone Pipeline

The Keystone Pipeline is a pipeline system that transports oil from Canada to the US and is approximately 2,687 miles long. The pipeline has two phases, with the first phase stretching from Hardisty, Alberta, to Steele City, Nebraska, and the second phase stretching from Cushing, Oklahoma, to Nederland, Texas.

Explorer Pipeline

The Explorer Pipeline is a 1,830-mile pipeline that transports gasoline, diesel fuel, and jet fuel from the Gulf Coast to the Midwest. The pipeline has a capacity of 660,000 barrels per day and serves markets in Texas, Oklahoma, Kansas, Missouri, Illinois, and Indiana.

Enbridge Mainline

The Enbridge Mainline is a system of pipelines that transports crude oil from western Canada to the US Midwest and Gulf Coast. It is, in total, over 5300 km in length. The pipeline system consists of several pipelines, including Line 3, Line 4, and Line 67, which collectively have a capacity of over 3 million barrels per day.

Overall, these pipelines play a crucial role in the transportation of oil and natural gas across the US, helping to power the country’s economy and meet the energy needs of its citizens.

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