Some portfolios are built for growth. Others are built for income. But it’s possible to have both. Pairing Tourmaline Oil (TSX:TOU) and Alamos Gold (TSX:AGI) is one way to do it. These two TSX giants operate in very different sectors. Yet each offers its own mix of cash flow stability and upside potential. That kind of diversification can help smooth the ride while keeping investors paid.
Source: Getty Images
TOU
Tourmaline spent the past year proving why it’s Canada’s largest natural gas producer. Over the last 12 months, its shares have been choppy, moving between the mid-$50s and low $70s as gas prices and global LNG developments shaped sentiment. But the fundamentals keep improving. In the second quarter of 2025, Tourmaline generated $822.8 million in cash flow and $316.9 million in free cash flow — all while maintaining net debt at just 0.5 times forecast cash flow. Production averaged over 620,000 barrels of oil equivalent per day, up 10% from last year. Plus, the dividend stock reaffirmed guidance for full-year production.
Why it matters now is the combination of stable operations and strategic moves. The dividend stock signed a long-term LNG feed gas supply agreement with Uniper. It also declared a $0.35 special dividend in August on top of its regular payments, giving investors a 3.44% forward yield. Risks remain as natural gas prices can swing sharply, and production deferrals tied to price or wildfires can impact results. Yet Tourmaline’s strong balance sheet and capital discipline leave it well-positioned to fund growth without sacrificing returns.
AGI
On the gold side, Alamos Gold has been on a very different trajectory. Over the last year, its stock has climbed more than 40%, benefiting from strong gold prices and execution on expansion plans. The crown jewel right now is the Island Gold District Base Case Life of Mine Plan, which integrates Island Gold and Magino into a single, long-life, low-cost operation. Starting in 2026, average annual production is expected to jump to 411,000 ounces over the first 12 years, with mine-site all-in sustaining costs averaging just $915 per ounce.
That low-cost profile, paired with rising output, gives Alamos a strong buffer against potential gold price volatility. It also means higher margins and room for shareholder returns. The dividend stock currently pays a modest 0.38% forward yield, but with an operating cash flow of $635.8 million over the past year and debt of just $280.3 million, it has room to grow. Management is also eyeing significant upside through an Expansion Study due later this year, which could boost throughput to as much as 20,000 tonnes per day and increase reserves. The main risks are tied to gold price corrections and potential delays in expansion, but the long reserve life and strong balance sheet provide a cushion.
Foolish takeaway
Pairing these two companies creates a blend that isn’t often found in a single sector. Tourmaline brings exposure to the energy market, where LNG growth and disciplined production can translate into sustained free cash flow and special dividends. Alamos adds a precious metals component that often moves counter to energy prices, with a growth runway supported by low-cost production and reserve expansion.
For investors looking to blend income with the potential for capital appreciation, this pairing offers a way to get both — all without leaning too heavily on a single macro trend. Energy and gold rarely peak at the same time, but both sectors can deliver substantial returns when managed well. Tourmaline and Alamos have shown over the past year that they can navigate their respective markets effectively, making these stocks a compelling duo for a balanced income portfolio.
