The Stocks I’d Choose First If I Had $1,000 to Put to Work Right Now

These top stocks combine strong returns and dividends – even for a $1,000 start.

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Key Points
  • Suncor Energy (TSX:SU) is delivering strong cash flow and returning more to shareholders.
  • TC Energy (TSX:TRP) benefits from record pipeline activity and steady earnings growth.
  • Both stocks offer a mix of income and long-term upside for new investors.

Investing in the stock market can feel exciting, especially when you have a clear plan and a small amount like $1,000 ready to deploy. The key is to focus on fundamentally solid stocks that offer not just short-term momentum but also strong long-term potential. Right now, some companies from the energy sector continue to stand out, with a few of them delivering solid returns and stable income.

Two such stocks that deserve attention are Suncor Energy (TSX: SU) and TC Energy (TSX: TRP). Both companies combine strong operational performance with reliable dividends, making them really attractive picks. Let me explain why.

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Suncor Energy stock

Suncor Energy is a leading Canadian integrated energy company with operations spanning oil sands development, production, refining, and retail distribution through its Petro-Canada network. SU stock currently trades at $91.72 per share with a market cap of $108.9 billion. Over the last year, it has surged by 63.6%, reflecting strong investor confidence.

Suncor’s recent growth has been driven by solid execution and operational strength. In its fourth-quarter 2025 results, the company reported adjusted funds from operations of $3.2 billion and free funds flow of $1.7 billion. It also returned about $1.5 billion to shareholders through dividends and share buybacks, highlighting its focus on rewarding investors.

Operationally, Suncor delivered impressive results. It achieved record upstream production of 909,000 barrels per day, up 34,000 barrels per day from the previous year. Refining throughput also hit a record 504,000 barrels per day, with refinery utilization reaching 108%. These numbers underline the company’s efficiency and ability to generate strong cash flows.

Looking ahead, Suncor plans to return 100% of excess funds to shareholders in 2026, including an estimated $3.3 billion in share repurchases. It has also increased its quarterly dividend by around 5%. At the same time, the company continues to invest in lower-emissions power and renewable fuels, aligning with evolving industry trends.

TC Energy stock

TC Energy (TSX: TRP) is another strong player in the energy space, operating an extensive network of natural gas pipelines and power generation assets across North America. The stock trades at $88.16 per share with a market cap of $91.8 billion and has gained 26.1% over the past year. It also offers a quarterly dividend yield of 4%.

The company’s recent performance reflects strong operational execution. In the fourth quarter of 2025, TC Energy reported a 13% YoY (year-over-year) increase in comparable EBITDA (earnings before interest, taxes, depreciation, and amortization) to $3 billion. Segmented earnings rose by 15% to $2.2 billion. A major driver behind this growth has been record pipeline activity. Canadian natural gas pipelines averaged 27.2 Bcf/d (billion cubic feet per day), while U.S. pipelines reached an all-time high of 39.9 Bcf in daily deliveries. Mexico operations also remained strong, with flows averaging 2.7 Bcf/d and power deliveries rising 11% YoY.

Going forward, TC Energy expects to bring about $4 billion worth of new capacity online in 2026. Its capital spending is projected between $6 and $6.5 billion before non-controlling interests. The company also remains focused on maintaining a healthy balance sheet and meeting its long-term financial targets.

Should you invest $1,000?

If you have $1,000 to invest right now, focusing on strong, cash-generating businesses can make a big difference over time. Suncor Energy and TC Energy both offer a mix of growth, income, and stability, backed by solid fundamentals and clear long-term strategies. While no investment is without risk, these two energy stocks provide a balanced way to participate in the sector while benefiting from dividends and potential capital appreciation.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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