Investing in dividend stocks is an effective way to build long-term wealth. In addition to capital appreciation, these companies offer regular payouts, which can further enhance returns when reinvested. Consistent income streams will also make dividend stocks less volatile, helping stabilize a portfolio.
However, dividends are not guaranteed. Investors should therefore focus on high-quality companies with reliable businesses and strong cash-flow generation. Against this backdrop, let’s look at two top energy stocks that offer attractive buying opportunities right now.
Enbridge
Enbridge (TSX:ENB) is a diversified energy company that operates an extensive pipeline network transporting oil and natural gas across North America. In addition, it owns three regulated natural gas utility assets in the United States and 41 clean energy assets supported by long-term power purchase agreements. Nearly 98% of Enbridge’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) comes from regulated assets and long-term, take-or-pay contracts, significantly reducing its exposure to commodity price volatility. About 80% of its EBITDA is inflation-indexed, providing a built-in hedge against rising prices.
Enbridge’s resilient business model and steady expansion of its asset base have supported consistent financial growth. Despite multiple macroeconomic challenges, the company has grown its adjusted EBITDA at an annualized rate of 8% over the past decade. Strong, predictable cash flows have enabled the company to raise its dividend for 31 consecutive years. With a quarterly dividend of $0.97 per share, the stock currently offers a compelling forward yield of 5.88%.
Rising oil and natural gas production across North America continues to drive demand for midstream infrastructure, expanding Enbridge’s addressable market. The company has identified approximately $50 billion in growth opportunities and plans to invest about $10 billion annually to fund these projects. Management expects to place $5 billion of projects into service in 2025 and another $8 billion this year. Supported by these growth initiatives, the diversified energy company aims to return $40–$45 billion to shareholders over the next five years.
Given its stable cash flows, long dividend-growth track record, and a visible growth pipeline, Enbridge stands out as an excellent buy for income-seeking investors.
Canadian Natural Resources
Another dividend stock I’m bullish on is Canadian Natural Resources (TSX:CNQ), a leading oil and natural gas producer with operations primarily in Western Canada, the North Sea, and offshore Africa. Its large, low-risk, and high-value reserves, combined with a diversified asset base, modest reinvestment needs, and efficient operations, have lowered its cost structure and breakeven point, supporting strong profitability and cash flows.
Backed by these healthy cash flows, CNQ has increased its dividend at an impressive 21% annualized rate over the past 25 years. The company’s current quarterly payout of $0.5875 per share yields 4.71% at current prices.
CNQ holds approximately five billion barrels of oil equivalent in reserves, with a proven reserve life index of about 32 years, providing long-term production visibility. The company is also strengthening its production capabilities through planned capital investments of $6.7 billion in 2025 and $6.4 billion in 2026. As a result, management expects average production this year to range between 1,590 and 1,650 thousand barrels of oil equivalent per day, with the midpoint representing a 3.2% increase from last year.
Given its high-quality reserve base, expanding production profile, and robust free cash flow generation, CNQ could continue rewarding shareholders with attractive dividends, making it an excellent choice for income-focused investors.
