Shares of Canadian energy producers are off their 2025 highs. Investors with a bullish view on demand for Canadian energy products are wondering which top TSX oil and gas stocks might be good to buy on a pullback for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on dividends and long-term total returns.
In the current market conditions, it makes sense to consider large players with strong balance sheets.
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Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) is a good stock to consider if you want exposure to both oil and natural gas. The company has vast production and reserves of oil sands, conventional heavy oil, conventional light oil, offshore oil, natural gas liquids, and natural gas.
The diversified holdings across the various products help CNRL navigate volatility in the commodity markets. The offshore oil production sells at higher global oil prices. Natural gas prices have been higher in 2025 than they were through most of last year. This helps offset the drop in the price of oil that has occurred over the past 12 months.
CNRL continues to boost output and revenue through both acquisitions and its capital program. The company’s size and strong balance sheet enable it to make large strategic asset purchases in the energy patch. CNRL’s US$6.5 billion purchase of Chevron’s Canadian operations late last year is a good example.
CNRL raised its dividend in each of the past 25 years. The stock currently trades near $42.50 compared to $55 at one point last year. Investors who buy the pullback can now get a 5.5% dividend yield.
Suncor
Suncor (TSX: SU) made good progress on its turnaround plan over the past two years. The company reduced expenses while improving production at its oil sands operations. Suncor also owns four refineries that turn crude oil into fuels and other end products. In addition, the company operates a portfolio of retail locations across the country under the Petro-Canada brand. The three divisions delivered record production, throughput, and sales volume results in Q1 this year.
Suncor’s integrated operations help mitigate the impact of volatility in the price of oil on upstream margins. Lower oil prices can reduce profits for the production business, but they also lower the input costs for the refineries. This can lead to higher profits on the finished products. Lower oil prices typically lead to cheaper fuel prices at the pump, as well. That can encourage people to take more trips, which brings them into the retail locations more often, helping drive higher sales of fuel and convenience products.
Suncor trades near $54 at the time of writing compared to a 12-month high around $58. Investors who buy the stock at the current level can get a dividend yield of 4.2%.
The bottom line
CNRL and Suncor are leaders in the Canadian energy sector and pay good dividends that should continue to grow. If you are an energy bull and have some cash to put to work in a dividend portfolio, these stocks deserve to be on your radar.
