Energy is the third-largest sector on the TSX by weight (14.8%), after financials (33.1%) and basic materials (18.1%), as of December 31, 2025. The constituents include oil and gas companies, equipment & services companies, and pipeline operators.
The so-called “toll booths” in the midstream segment are critical to North America’s energy infrastructure. More importantly, the country’s total exports could suffer without them. After the U.S. military intervention in Venezuela and plans to take over the oil industry, Canadian pipelines have become strategic assets in supporting domestic production growth and moving the country’s oil.
If you’re looking to invest in 2026, you can start with $1,000 to buy shares of TC Energy (TSX: TRP) or Keyera (TSX: KEY). Both pipeline stocks generate strong contracted cash flows and pay generous dividends. You can hold either one forever, too.
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Unrivaled footprint
TC Energy has a strong bull case following the spinoff of its liquids business and pivot to gas pipes. The $79.5 billion has retained or kept the 3,700 km of natural gas pipelines in post-restructuring. About 25% of total natural gas consumption in North America passes through this massive network.
The natural gas pipelines account for 90% of the total business mix. In addition to its low-risk portfolio, TC Energy boasts an unrivalled footprint across Canada, the U.S., and Mexico. Natural gas demand is expected to grow significantly by 2035 in these three countries.
Its president and CEO, François Poirier, said after three quarters in 2025, “Driven by robust North American energy fundamentals, strong asset performance and exceptional project execution, we are extending our 5% to 7% annual comparable EBITDA growth outlook through 2028. Our strategy is working, we’re delivering consistent value without taking on additional risk.”
As a natural gas and power company, TC Energy aims to be the leading clean energy infrastructure provider for AI data centres and global liquefied natural gas (LNG) markets.
If you invest today, TRP trades at $76.41 per share and pays a hefty 4.45% dividend. Your $1,000 can buy 13 shares and generate $44.30 in annual dividends. A compelling reason to invest is the 25-year dividend-growth streak. For 2026 to 2028, the annual dividend-growth guidance is 3% to 5%.
National-scale NGL company
Keyera owns the Key Access Pipeline System, or KAPS, a major 575-kilometre natural gas liquids (NGL) and condensate pipeline system in Alberta. KAPS is the largest project of this $10.3 billion company. Also, its energy infrastructure business is predominantly fee-for-service based.
The business consists of natural gas gathering and processing; NGLs processing, transportation, storage, and marketing; and iso-octane production and sales. KEY trades at $44.99 per share, with a 4.8% dividend yield. A $1,000 investment (22 shares) will produce $48 yearly. You can accumulate more shares later on to increase dividend income.
Keyera is set to become a national-scale NGL company in 2026 once it completes the $5.15 billion transaction to acquire Plains All American Pipeline LP’s Canadian NGL business. Its CEO, Dean Setoguchi, said a strategically important energy infrastructure will be in Canadian hands. He added that Keyera wants what is good for Canada.
Serious wealth
A $1,000 investment in TC Energy or Keyera is money well spent. If finances allow, consider accumulating more shares of either pipeline stock to build serious wealth over time.
