2 No-Brainer Energy Stocks to Buy With $1,000 Right Now

These Canadian energy stocks are likely to benefit from high demand, driven by decarbonization, energy security, and digital infrastructure.

Key Points
  • Canadian energy stocks have historically delivered solid income and long-term growth through dividends, share buybacks, and capital appreciation.
  • Rapidly rising electricity demand from AI offers significant growth opportunities in the energy sector beyond traditional oil and gas.
  • These Canadian energy stocks are likely to benefit from strong tailwinds, including rising demand for nuclear power and clean energy.

Canadian energy companies are among the top long-term bets and for good reasons. Many of these TSX stocks have returned significant capital to shareholders through reliable dividends and ongoing share buyback programs, while generating meaningful long-term capital appreciation. This combination of income and growth has made the sector attractive to investors.

That said, the investment opportunity in the energy space is evolving. Rather than focusing on traditional oil and gas producers, investors should pay close attention to how the broader energy landscape is being reshaped. The sector is in the midst of a rapid, technology-driven transition away from purely fossil-fuel-based systems toward cleaner energy solutions. This shift is opening the door to new investment opportunities that are likely to deliver outsized returns in the coming years.

One of the most powerful catalysts behind this transformation is surging electricity demand. The ongoing expansion of data centres driven by artificial intelligence (AI) is placing significant strain on power grids, underscoring the critical need for reliable, scalable energy sources. In this environment, nuclear energy and renewables stand out as particularly compelling growth areas, offering both long-term demand visibility and alignment with global decarbonization goals.

So if you have $1,000 to invest, here are two no-brainer energy stocks to buy with $1,000 right now.

A lake in the shape of a solar, wind and energy storage system in the middle of a lush forest as a metaphor for the concept of clean and organic renewable energy.

Source: Getty Images

Energy stock #1: Cameco

Cameco (TSX: CCO) is an attractive long-term investment opportunity within the energy sector as global power markets increasingly prioritize reliability, security, and decarbonization. As one of the world’s largest uranium producers, Cameco plays a critical role in supplying fuel for nuclear power.

Further, Cameco has taken steps to strengthen its position across the nuclear value chain. Its strategic investments in Westinghouse Electric Company and Global Laser Enrichment expand its capabilities. This broader footprint enhances Cameco’s competitive positioning and provides additional avenues for long-term value creation.

The company owns interests in some of the highest-grade and lowest-cost uranium reserves in the world, giving it a structural cost advantage that supports strong margins even during periods of commodity price volatility.

Cameco is well-positioned to capitalize on growing nuclear power demand driven by the rapid expansion of AI-driven data centres. Further, Cameco’s long-term supply contracts provide visibility into revenue and downside protection. Moreover, its ongoing expansion and exploration initiatives position the company for future production growth.

As demand continues to grow, driven by decarbonization, energy security, and digital infrastructure, Cameco’s integrated business model and large-scale position it well to capitalize on energy demand.

Energy stock #2: Brookfield Renewable

Brookfield Renewable (TSX: BEP.UN) is a leading renewable power and energy transition company. Its portfolio spans a wide range of renewable assets, including hydroelectric, wind, utility-scale solar, and energy storage facilities. Moreover, the company has a growing sustainable solutions platform that includes an investment in a global nuclear services business, materials recycling, and eFuels manufacturing capacity.

Brookfield Renewable’s diversified assets and long-term contracts provide predictable earnings and cash flow, which in turn support reliable distributions. Moreover, it is likely to benefit from high demand for clean power driven by energy-intensive technologies, such as AI.

The company is also positioning itself to benefit from the rapid growth in battery storage. Brookfield Renewable is advancing its global battery development strategy, enhanced by its acquisition of Neoen, which expanded its development pipeline, geographic reach, and technical capabilities. Its global presence and commercial relationships strengthen its ability to capture opportunities across multiple markets.

Brookfield Renewable continues to actively recycle capital. By selectively selling mature assets, the company generates proceeds that can be redeployed into new development opportunities, supporting future growth and generating significant returns.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Cameco. The Motley Fool has a disclosure policy.

More on Energy Stocks

Hourglass and stock price chart
Energy Stocks

Enbridge Q3: Profit Nearly Doubles, and I Don’t Think the Dividend Stock is Done Yet

Enbridge starts investors off with a near 5.9% dividend that can continue to grow with a steady growth profile.

Read more »

Woman checking her computer and holding coffee cup
Energy Stocks

Hydro One Stock: A Growing Grid Doesn’t Mean You Should Pay Any Price

Hydro One’s grid investment supports growth, but my preferred entry offers a better starting yield than today’s price.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Suncor vs. Canadian Natural: Which Dividend Would I Rely On When Oil Falls?

Canadian Natural is my income preference through weaker oil prices, while Suncor offers refining exposure and a newly increased dividend.

Read more »

dividend stocks are a good way to earn passive income
Energy Stocks

Income Investors! Enbridge’s Q3 Results and 5.8% Yield Make a Compelling Case

Enbridge is operating close to capacity as the energy sector benefits from strong demand. The stock is a good buy…

Read more »

Hourglass projecting a dollar sign as shadow
Energy Stocks

Canadian Natural Resources Is Down 10% in 5 Days: Too Late to Buy the Dividend?

Learn how the US mid-term elections affected Canadian Natural Resources and quickly led to a 10% drop in stock value.

Read more »

Business doodle about dividends on chalkboard
Energy Stocks

A Top-Notch 6.5% Dividend Stock to Fuel Your Retirement Income Every Month

Peyto Exploration stock just instituted an 8% increase in its monthly dividend, as cash flows remain strong and its debt…

Read more »

A meter measures energy use.
Energy Stocks

Rates Are Rising Again: Is Emera Still a Sensible Retirement Stock?

Emera still offers retirement income, but borrowing costs and per-share earnings decide how comfortably that payment can grow.

Read more »

how to save money
Energy Stocks

How Much Would You Need to Invest in Enbridge to Average $200 a Month?

Enbridge’s current dividend needs roughly $42,600 in shares to average $200 monthly, with payments arriving every quarter.

Read more »