2026 started off with a very interesting development that can have far-reaching consequences for the world. The superjudicial decision to abduct the Venezuelan president by Donald Trump triggered yet another reverberating shock in oil supply that impacted the Western Texas Index (WTI) crude oil price.
The initial reaction was a drop in oil stocks across Canada’s energy sector. After all, Venezuela is a competing oil producer and has significantly larger oil reserves than any major oil producer. However, the shift in global oil trade resulting from this disruption quickly led to opportunists seeing the value that Canadian oil stocks offer.
For those interested in dividend investing, it is important to note that not every stock that climbs high can be a good investment. The stock should climb for the right reasons to trigger a buying frenzy, and that is just what might be happening with Suncor Energy Inc. (TSX:SU) stock.
A look at the Suncor price chart above, especially comparing the last few months to the last five years, shows that it has momentum right now. As 2026 continues, it might continue to soar higher. Let’s see whether the integrated energy company can be a long-term holding at current levels.
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Suncor Energy
Suncor Energy is a major player in the Canadian energy industry, but it differentiates itself from most due to its integrated structure. Instead of focusing on upstream, midstream, or downstream operations, it has its hands across all of them. The company produces oil through its offshore and oil sands assets. Then, it upgrades the crude oil and refines it. After that, the company has a massive downstream network that it uses to sell the final product to end consumers.
The $82.9 billion market-cap company is Canada’s largest integrated energy company. That factor alone gives it a massive advantage over its closest peers. The company’s cash flows enjoy a buffer against volatile commodity prices. Solid refining margins can help it offset any weakness in its upstream operations and vice versa.
The Canadian oil company is also a dividend stock that pays quarterly distributions to investors. It pays $0.60 per share each quarter, translating to a 3.4% dividend yield. Does the promise of dividends make it an attractive holding to consider on its own? No, but there are other numbers to support it.
Foolish takeaway
In the third quarter of 2025, Suncor Energy stock reported $1.6 billion in net earnings and $1.8 billion in adjusted operating earnings. The company also generated $3.8 billion in adjusted funds from operations. These numbers show that it has the kind of economic moat to support dividends and share buybacks.
The energy producer returned $1.4 billion to shareholders through share buybacks and dividends. The company anticipates its 2026 upstream production to stay at high levels of up to 870,000 barrels per day, and it plans to increase its monthly share buybacks.
However, the oil industry is in a state of change due to geopolitical factors. Things can change drastically. While SU stock might seem like a sound long-term investment, it might be prone to short-term volatility. If you can handle the risk that comes with it, Suncor can be a solid long-term holding to consider.
