Thinking about top energy stocks that may be poised for big upside in 2026, there were really only a few I could point to as companies with meaningful upside catalysts over the next year. For oil and gas companies, commodity price fluctuations can easily derail a thesis in no time. Other companies in the renewable energy space have seen similar volatility, with added regulatory risk as well.
That said, energy infrastructure companies like Enbridge (TSX:ENB) have been given a new lease on their outlooks. Investors now generally view pipeline companies such as Enbridge positively, with expectations that the new pipeline projects or expansions of existing networks could bolster valuations in this space.
Here’s why I think Enbridge is the must-watch Canadian energy stock for 2026.
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A dividend profile worth investing in
Enbridge has historically been among the highest-yielding energy stocks in the market. That’s changed somewhat, with the company’s 5.8% yield still below many of its peers.
That said, the company’s rather consistent dividend-growth rate (of around 3% per year) should provide meaningful dividend appreciation for those looking for passive income streams that can grow over time. In my view, Enbridge is an excellent holding for a passive income or retirement portfolio for this key reason.
Growth profile greatly improved
Aside from Enbridge’s core dividend, this pipeline giant has new growth catalysts in the form of oil-friendly administrations both in Canada and the U.S. The political willpower needed to get large-scale multi-billion-dollar projects approved (even if private companies like Enbridge fund these expansions) has been hard to come by in decades past.
Accordingly, with the Carney and Trump governments likely to greenlight an expansion of the existing slate of fossil fuel infrastructure we’re working with (much of which is decades old, and could lead to spills), some in this sector believe this is a net positive.
Simply replacing or adding to existing pipeline capacity could be beneficial for Enbridge, as it would allow for the kind of production growth that could drive the kind of revenue and earnings growth investors are after.
I’m bullish on Enbridge specifically for this reason heading into 2026. That said, this is a top dividend stock I’d buy on dips as a core portfolio holding for its other properties, which are equally attractive in my books.
