If you’re looking to give your portfolio a boost before 2024 wraps up, the Canadian energy sector could offer some great opportunities to start. With oil prices holding steady for the last few months and natural gas prices inching up, some top Canadian oil and gas companies could post improved financials, which could drive their share prices higher in 2025.
In this article, I’ll reveal two high-potential Canadian energy stocks with stable dividends you can consider adding to your portfolio before the year ends.
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Suncor Energy stock
After trading on a weak note in 2023, Suncor Energy (TSX: SU) has delivered 28% positive returns to investors year to date. With this, it currently trades at $54.15 per share with a market cap of $68.9 billion. At this market price, this Canadian integrated energy firm also offers a decent 4.2% annualized dividend yield.
Financially, Suncor has had an outstanding 2024, beating Street analysts’ earnings estimates in each of the three quarters reported so far. In the September quarter, the company achieved its highest-ever refining throughput of 488,000 barrels per day with an impressive utilization rate of 105%. In addition, its upstream production reached 829,000 barrels per day, marking the best third quarter in Suncor’s history.
Another key factor that makes this oil producer even more attractive for income-focused investors is its continued focus on returning value to its loyal shareholders. In the latest reported quarter, the company returned $1.5 billion to investors through a combination of share buybacks and dividends. Encouraged by its strong cash flows, Suncor also recently announced a 5% YoY (year-over-year) rise in its quarterly dividend to $0.57 per share.
Besides its strong financial performance and operational efficiencies, Suncor’s strengthening balance sheet, with reducing debt, improving cost management, and investments in emissions reduction technologies, makes its stock really attractive to buy for the long term.
Canadian Natural stock
Canadian Natural Resources (TSX: CNQ) is another safe energy stock you may want to consider this December. After witnessing an 8.3% rise over the last year, CNQ stock currently trades at $45.90 per share with a market cap of $97 billion. At the current market price, it offers a 4.9% annualized dividend yield and distributes these payouts every quarter.
In the latest quarter ended in September, Canadian Natural posted an average production of 1.36 million barrels of oil equivalent per day. This total production figure included a record-breaking synthetic crude oil (SCO) production of 529,000 barrels per day in August.
The Canadian oil and gas giant recently acquired Chevron’s Alberta assets, which are likely to boost its production and cash flows in the coming years. With this acquisition, Canadian Natural has now raised its stake in the Athabasca oil sands project to 90%, adding 62,500 barrels per day of synthetic crude oil to its portfolio.
Moreover, Canadian Natural’s continued efforts to expand its base of long-life, low-decline oil sand assets further strengthen its position as a high-quality energy stock to buy now and hold for years to come.
