Month-to-month Dividend Inventory In Focus: Cardinal Power

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 an alternative of quarterly.

You’ll be able to 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 beneath:

 

Cardinal Power’s mixture of an above-average dividend yield and a month-to-month dividend makes it a gorgeous possibility for particular person traders, and significantly those who depend on dividend revenue for residing bills.

However there’s extra to the corporate than simply these elements. Preserve studying this text to study 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, comparable to water flooding and CO₂ injection, are actively used to take care of secure manufacturing. The corporate was shaped 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 discipline operations and value 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 virtually pure oil producer, Cardinal Power is extremely delicate to the dramatic cycles of the oil business. 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 minimize the payout repeatedly and even briefly eradicated it over that interval.

Alternatively, Cardinal Power has some benefits in comparison with well-known oil producers. Most oil and fuel producers have been struggling to replenish their reserves because of the pure decline of their producing wells.

Supply: Investor Presentation

Cardinal Power is the standard 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 primarily flat manufacturing vs. the prior yr’s quarter however its earnings per share dipped 20%, from $0.15 to $0.12, primarily attributable to a lower in realized oil costs.

Cardinal posted fourth quarter and full-year earnings on March twelfth, 2026, and outcomes have been considerably blended. Internet income was just below $80 million, which was off 12% year-over-year. Document manufacturing volumes have 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 complete manufacturing combine.

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

Development Prospects

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

Supply: Investor Presentation

Even higher, the corporate has ample room for future development due to some development tasks.

Cardinal Power has supplied steerage for common manufacturing of ~25,000 barrels per day this yr. If it meets its steerage, it’ll publish meaningfully increased output in comparison with final yr, due to the Reford undertaking.

Nevertheless, when the continuing development tasks start to contribute to the output of the corporate, they’re prone 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.

Alternatively, 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 due to the restoration of worldwide oil consumption, which led the worth of oil to surge to a 13-year excessive.

The warfare in Iran has pushed world power costs up very sharply in 2026, and Cardinal stands to be a major beneficiary.

Because of this, 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 anticipate earnings per share of roughly $1 this yr.

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

A powerful stability sheet is paramount within the oil business, as it’s probably to assist the corporate endure future downturns in its enterprise.

Dividend & Valuation Evaluation

Cardinal Power is at the moment 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 revenue traders, however they need to bear in mind that the dividend is much from protected because of the 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, due to the strong monetary place of the corporate, its dividend is just not prone to be diminished dramatically beneath present oil costs.

In reference to the valuation, Cardinal Power is at the moment 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 correct 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 impression from the valuation.

Considering the 5.0% annual development of earnings per share, the 5.8% present dividend yield and no impression from the valuation, Cardinal Power might supply a ~10% common annual complete return over the following 5 years.

The anticipated return alerts that the inventory is an effective long-term funding, however just for these with a excessive threat tolerance.

Closing Ideas

Cardinal Power has been thriving since 2021 due to a super atmosphere 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 first rate development prospects and its affordable valuation, the inventory seems engaging.

Alternatively, the corporate has confirmed extremely susceptible to the fluctuations within the value of oil. Because of this, it isn’t 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 ascertain or promote a big place on this inventory. Nonetheless, the longer power costs stay elevated, the higher the outlook for Cardinal.

Extra Studying

Don’t miss the assets beneath for extra month-to-month dividend inventory investing analysis.

And see the assets beneath for extra compelling funding concepts for dividend development shares and/or high-yield funding securities.