Long-Term Investors: 4 Top Energy Stocks to Buy Immediately

Energy stocks are some of the best stocks to buy right now given all the tailwinds the industry is seeing. So here are four of the best to consider.

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There’s no question that top energy stocks are some of the best investments to buy now. And with these stocks having already rallied significantly and currently enjoying significant tailwinds, they are stocks you’re going to want to buy sooner than later.

Energy is one of the most basic and essential industries. So naturally, there are some incredible investments to be made. As long as the stocks you buy have high-quality operations that you believe in and are comfortable owning for the long haul, then there’s no question that energy stocks are worth a buy today.

So if you’re looking to add more exposure to energy, here are four top energy stocks to buy for your portfolio immediately.

Two top energy stocks with years of growth potential

Many different energy stocks have tailwinds right now, but there are still several different types to consider. One of the best to buy for both the current environment but also its long-term potential is Peyto Exploration and Development (TSX:PEY).

Peyto is a natural gas stock, one of the cleanest fossil fuels, giving it decades of growth potential. In addition, it’s one of the lowest-cost producers in the industry, giving it a significant advantage over its competitors.

Peyto is also extremely well managed. And so you know that after its dividend just increased significantly in the fall, the stock and its operations are seeing a full recovery.

So even despite its incredible rally recently, it continues to be one of the top energy stocks to buy now. I’d consider it soon, though. It only continues to get more expensive.

In addition to Peyto, another top energy stock with years of growth potential is a green energy stock like Northland Power.

Plenty of green energy stocks offer long-term growth potential. In addition, they also offer attractive dividends, making them some of the top energy stocks to buy now.

Two top investments for passive income seekers

If you’re more of a dividend investor, you may want to consider high-quality stocks like Freehold Royalties (TSX:FRU) or Enbridge (TSX:ENB)(NYSE:ENB) before they get more expensive.

Both stocks are lower-risk investments in the industry, and both return investors attractive passive income.

In Enbridge’s case, the $100 billion stock is so intertwined in the North American energy industry that it’s an incredibly reliable stock. Plus, because it’s a cash cow, not only does it offer an attractive yield, but it’s also constantly increasing the payout each year.

In Freehold’s case, while it was impacted by the pandemic and temporary production curtailments, ever since, the stock has been one of the best performers. In addition to gaining more than 200% in the last year and a half, it’s also increased the dividend payout on six separate occasions.

And going forward, Freehold has the potential to continue seeing share price appreciation as well as to increase the dividend.

So if you’re a dividend investor looking to buy some of the top stocks now, I’d buy energy stocks like Enbridge and Freehold before they get any more expensive.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa owns ENBRIDGE INC, FREEHOLD ROYALTIES LTD., and NORTHLAND POWER INC. The Motley Fool recommends Enbridge and FREEHOLD ROYALTIES LTD.

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