The energy sector is a key part of the Canadian economy, and it’s definitely worth considering for your diversified portfolio. Investors are snapping up Canadian energy plays, from pipeline giants to oil sands producers, drawn by high yields, steady cash flows, and improving market sentiment. But are these stocks still worth buying now?
Let’s take a closer look at three of the most actively traded Canadian energy stocks and determine if they deserve a spot in your portfolio today.
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TC Energy: A surprising comeback
Few expected TC Energy (TSX:TRP) to double in such a short time, but that’s almost exactly what it’s done. Since bottoming in late 2023, the energy infrastructure stock has surged by about 95%, all while continuing to pay its reliable quarterly dividend.
Much of the rally has been driven by macro tailwinds. The Bank of Canada began cutting interest rates in mid-2024, making TRP’s once-overlooked yield suddenly more attractive to income-focused investors. Today, the stock trades around $74 per share, offering a 4.6% dividend yield.
To be clear, these kinds of returns aren’t typical for utility-like pipeline stocks. More recently, TRP has delivered a modest five-year dividend growth rate of below 5%. That said, it could be a hold for long-term income seekers.
At its current valuation, TRP appears fairly priced. But if the stock pulls back — say, due to a broad market dip — it could offer a more attractive entry point for dividend investors.
Canadian Natural Resources: Built for the long haul
Canadian Natural Resources (TSX:CNQ) hasn’t delivered TRP’s eye-popping returns lately, but don’t overlook it. The stock has mostly traded in a sideways range since late 2023 and is flat over the past year. Yet, CNQ has continued to quietly grow its dividend, now yielding an attractive 5.2%.
What makes CNQ stand out is its operational strength. With a reserve life of 32 years, CNQ holds the second-largest reserves among global peers and dominates in Canada. Its low-decline, long-life assets give it longevity that few oil producers can match.
Even more impressive is its efficiency: CNQ’s breakeven price sits in the low to mid-US$40s per barrel, which easily covers maintenance capital — even in weaker oil price environments.
At around $45 per share, analysts see about 16% upside potential. For investors seeking a blend of income and long-term capital appreciation, CNQ is a solid contender — especially if you can scoop it up on a dip to the low $40s.
Suncor Energy: Steady performer with broad exposure
Suncor Energy (TSX:SU) offers something different: integration across the entire value chain — from crude oil production to refining to fuel sales. This diversification tends to smooth out earnings, and it shows in the stock’s performance.
Suncor has climbed about 35% since October 2023 and is up 14% over the past year, outperforming CNQ. Its refinery utilization rate hit 99% in the first half of 2025, a strong indicator of demand and operational efficiency.
Suncor also boasts a healthy 25-year reserve life and is committed to a dividend growth rate of 3-5% per year. At around $58 per share, the stock yields 3.9% and appears fairly valued. Like the others, it’s a smart buy — on a pullback.
Investor takeaway: Buy, hold, or wait?
These energy stocks are popular for a reason — they offer reliable dividends and solid fundamentals. But valuation matters.
- TC Energy may be a hold for now — buy only on weakness.
- Canadian Natural Resources is a long-term buy, especially for income investors.
- Suncor is a solid pick with stable earnings, best scooped up during dips.
Everyone’s buying these energy stocks — but a little patience might get you a better price.
