4 Top Energy Stocks (With Dividends) to Buy and Hold Forever

These four energy stocks are the best way to get in on long-term income from both growth and dividends.

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Energy stocks have historically been some of the best places for Canadian investors to park their cash. Especially here in Canada, where our oil and gas companies have done so well for so long. But if you’re looking for a buy-and-hold stock on a forever basis, this no longer might be the best option.

Yet don’t worry. We need energy, and there are other places to get it. This includes already strong companies that are only growing stronger. With that in mind, here are the four energy stocks I would consider picking up first, dividends included.

Utilities

If you want energy stocks, then utilities are likely the first place you’ll want to look. Utility companies typically provide essential services such as electricity, water, and natural gas, which have consistent demand regardless of economic conditions. This leads to stable and predictable cash flows, allowing utilities to pay reliable dividends.

Furthermore, utilities are known for their relatively high dividend yields compared to other sectors. This makes them attractive for income-focused investors. The steady cash flow enables utilities to maintain and often increase their dividend payouts over time.

If you want to park your cash, utilities are a strong option. While utility stocks are generally considered stable, they also have growth potential. Investments in renewable energy, infrastructure upgrades, and technological advancements in energy efficiency can drive long-term growth.

In this case, there are two I would consider first and foremost. Those are Fortis and Canadian Utilities. These are Canada’s only Dividend Kings, providing a dividend increase every year for the last 50 years! So, if you want energy stocks that are set to last, these are the prime options.

Renewable energy

Then there’s renewable energy. This sector, too, can provide you with strong long-term growth, but it can be far more difficult to find a company that will provide a long-term option. That’s because we don’t know which renewable energy resource will be the top choice.

That is why it can be best to choose companies that are involved in several options. Renewable energy companies that invest in everything from wind and solar to offshore wind farms and uranium can be a great way to get a piece of all the action.

It’s never been better to get in on this area as well. There is a global shift towards cleaner and more sustainable energy sources driven by environmental concerns, regulatory pressures, and technological advancements. This growing demand for renewable energy can provide strong, long-term growth prospects for companies in the sector.

As technological advancements increase and more opportunities arise, renewable energy stocks are likely to only climb higher. This is why I would recommend investing in Brookfield Renewable Partners and Northland Power. Both of these Canadian energy stocks have an investment in a number of different asset types. And both recently reported strong quarterly earnings, seeing shares rise higher. And with growing and stable dividends, these are two more energy stocks to consider picking up and holding forever.

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 Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners and Fortis. The Motley Fool has a disclosure policy.

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