Top Natural Resources Stocks to Buy in 2023

The TSX have four top natural resources stocks for Canadians looking to adopt a more focused investing strategy.

| More on:
A sapling regrows in a forest that has been logged.

Source: Getty Images

In the stock market, there’s such a thing as natural resource investing. A portfolio manager or an individual finds it compelling to invest in companies that process or develops natural resources and turn them into durable products. Among these gifts of nature are oil and gas, precious metals, steel, and timber.

Demand for products made from natural resources is ever growing, especially in infrastructure. Some investors find metals a store of value and turn to them when market headwinds are strong. The TSX has a wide selection of natural resources stocks, but four names are screaming buys in 2023.     

Oil and natural gas

Canadian Natural Resources (TSX:CNQ) operates a diversified portfolio of assets globally. The $87.82 billion company is one of the world’s largest independent oil and natural gas producers. Its sustainable cash flow comes from the asset portfolio, a balanced mix of natural gas, light crude oil, heavy crude oil, bitumen and synthetic crude oil (SCO).

Today, the market cap stands at $87.82 billion, although on April 20, 2022, it CNQ became the first Canadian oil and gas company to surpass the $100 billion market value. Industry experts said it joined the big league composed of Chevron, ConocoPhillips, and Exxon Mobil. CNQ trades at $79.33 per share (+5.51% year to date) and pays an attractive 4.38% dividend.

Metals and mining

Barrick Gold (TSX:ABX) is the gold standard for TSX’s metals and mining sector. The $43.71 billion mining company is a gold and copper producer. Mining experts concede that Barrick’s portfolio of tier-one and world-class gold and copper assets is not only the largest but the best in the industry.

Management said it has a clear growth runway given all the mines’ 10-year business plans. Moreover, it anticipates growth projects and a robust pipeline to enhance production levels with no significant dips over the next decade. At $24.81 per share (+6.89% year to date), Barrick pays a modest but super-safe 2.94% dividend.    


Stelco Holdings (TSX:STLC) isn’t a famous name, but the stock outperforms the broader market year to date at +16.89% versus +6.91%. This $2.85 billion company was initially titled “The Steel Company of Canada” in 1910.

The Hamilton, Ontario-based firm has seen steady growth through the years. Today, Stelco is a vertically integrated, independent Canadian steelmaker that builds quality steel products for the global market. At $51.77 per share, you can partake of the decent 3.25% dividend.


Acadian Timber’s (TSX:ADN) market cap may be the smallest in the group, but this small-cap stock pays a 7.05% dividend. At $16.81 per share, current investors enjoy a +12.33% year-to-date gain on top of the ultra-high dividend yield. This $283.84 million owns and manages around 1.1 million acres of freehold timberlands in New Brunswick and Maine.

The products it sells to diversified end-use markets include softwood and hardwood sawlogs, pulpwood, and biomass by-products. Management’s business strategy is to maximize cash flows from its existing timberland assets through sustainable forest management. These high-quality assets provide perpetual returns and cash flow stability.

Adopt the strategy

Proponents of natural resource investing believe the pool of investable natural resources is growing, because demand is ever-increasing. Average investors have four fine gems to choose from if they adopt the strategy in 2023.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.

More on Investing

edit Sale sign, value, discount
Energy Stocks

2 Cheap Canadian Stocks You Can Buy for Less Than $50

You can buy Suncor Energy stock, and this gold stock at cheap valuations today

Read more »

A airplane sits on a runway.
Stocks for Beginners

Are Airline Stocks a Good Buy in March 2023?

Few companies have felt the pandemic as much as airlines. But now that markets are open, are airline stocks a…

Read more »

Happy diverse people together in the park
Dividend Stocks

Gen Z Investors: How to Make $2.8 Million Before Retirement

Gen Z investors have one thing to their advantage: time. Invest wisely and practically any investment could turn into millions.

Read more »

A plant grows from coins.
Dividend Stocks

The 2 Top Monthly Dividend Stocks for March 2023

These are the top two monthly dividend stocks you can buy in Canada in March 2023.

Read more »

Target. Stand out from the crowd

If I Could Only Buy 1 Stock Right Now, This Would Be it

Are you looking for that one stock to add to your portfolio? This would be my top pick right now.

Read more »

Canadian Dollars
Dividend Stocks

Got $6,500? Earn $48/Month Tax-Free Passive Income

High-dividend-paying Canadian stocks include Diversified Royalty. Let's see how a TFSA investment of $6,500 can help you earn $48 in…

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Better Buy: Shopify vs. Constellation Software

Are you interested in buying a tech stock? Find out which is the better buy between Shopify and Constellation Software.

Read more »

Piggy bank next to a financial report
Bank Stocks

U.S. Bank Meltdown: These 2 Canadian Banks Are Safer

Canadian banks like Royal Bank of Canada (TSX:RY) are safer than the collapsing U.S. banks.

Read more »