When it comes to building a long-term portfolio, there’s no question that energy stocks are some of the most important investments you can own. Energy powers the economy, and no matter how much the world evolves, demand for reliable energy sources is only going to grow over time.
That’s why having exposure to the energy sector is crucial when building a diversified portfolio. Not only does the industry offer strong long-term potential, but it also gives investors plenty of different options to choose from.
For example, you can invest in traditional producers that explore and extract oil and gas. You can own infrastructure stocks like pipeline companies, which generate consistent cash flow from transporting energy. Or you can even gain exposure to green energy businesses that are positioned for the future as the global economy shifts toward cleaner alternatives.
And because many energy companies generate significant cash flow, they can often offer attractive dividend yields, providing investors with reliable passive income while still offering long-term growth potential.
Furthermore, with all the volatility in the market today and uncertainty about what the future holds, finding reliable stocks in essential industries like energy is one of the smartest moves investors can make.
So, with that in mind, here are two of the best energy stocks to consider buying today.
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One of the best energy stocks that Canadian dividend investors can buy
If you’re looking for a stock to buy that’s perfect for this uncertain environment, there’s no question that Enbridge (TSX:ENB) should be at the top of the list.
Enbridge isn’t just one of the best energy stocks in Canada; it’s one of the best dividend stocks, period, for a number of reasons.
First off, many of its operations are essential to the North American economy. Providing essential operations ensures that the business is defensive and reliable in any market condition and that the cash flow it generates is consistent and predictable.
Enbridge is a massive and well-diversified company with many different operations that are all integrated with each other. However, the fact that it transports roughly 30% of all the crude oil produced in North America and roughly 20% of all the natural gas consumed in the U.S. demonstrates just how important the energy stock is to the economy and why it’s such a reliable investment to own for the long haul.
Plus, in addition to its essential operations, Enbridge also has a long track record of profitability. In fact, it’s increased its dividend every year for three straight decades now.
So, if you’re looking for a high-quality, reliable investment to buy in this environment, Enbridge, with its current dividend yield of 5.9%, is undoubtedly one of the best energy stocks you can buy today.
One of the best long-term growth stocks to buy now
In addition to a high-quality energy infrastructure stock like Enbridge, another no-brainer investment in today’s uncertain environment is Brookfield Renewable Partners (TSX:BEP.UN).
When it comes to investing for the long haul, there’s no question that one of the best industries to find stocks is green energy.
Not only is there a significant push all over the world for cleaner and more sustainable energy, but the global demand for energy continues to grow every single year. Furthermore, renewable energy continues to become more affordable, making it an industry with a tonne of long-term potential.
And while there are plenty of renewable energy stocks to buy now, there’s no question that Brookfield is a leader in the space.
It owns a portfolio of renewable energy assets located all over the world and has a long track record of consistently expanding its portfolio as it raises more capital and continues to invest in new opportunities.
And in today’s uncertain market environment, the green energy stock is trading nearly 25% off its 52-week high, making it a no-brainer for investors who are looking to put cash to work right now. Plus, in addition to the value it offers today, as the stock has sold off, its dividend yield has been rising rapidly and now sits at roughly 6.9%.
So, if you’re looking for high-quality energy stocks to buy now, there’s no question Brookfield Renewable Partners is a top choice.
