The Canadian energy sector looks attractive right now, where strong demand, rising infrastructure spending, and favourable commodity prices are creating solid growth opportunities. Beyond traditional oil and gas producers and infrastructure companies, renewable energy companies are also gaining momentum as the transition toward cleaner power sources accelerates.
Within this background, here are two fundamentally strong Canadian energy stocks to buy and hold right now. These companies are well-positioned to reward shareholders with steady dividend income and long-term capital gains.
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Enbridge
One of the top Canadian energy stocks to buy and hold right now is Enbridge (TSX:ENB). The leading energy infrastructure company connects key supply and demand regions. More importantly, its business is built on regulated assets and long-term contracts, allowing it to generate steady cash flow regardless of short-term commodity price swings.
This stability has helped Enbridge deliver consistent earnings and distributable cash flow (DCF) growth, positioning it well to consistently pay and increase its dividend. Notably, Enbridge is one of the top dividend payers. It has paid dividends for more than 70 years and has increased its annual payout every year since 1995.
Enbridge’s outlook remains compelling. The energy infrastructure company is well-positioned to benefit from resilient energy demand, growing power consumption, AI-driven data centre expansion, and investments in the energy transition. Its secured $39 billion project backlog, supported by long-term contracts and regulated frameworks, provides strong visibility into future revenue and cash flow growth.
Management expects earnings and DCF per share to increase in 2026 and targets approximately 5% annual growth beyond that. This will support its future payouts.
Overall, Enbridge’s dependable dividend, resilient business model, and solid growth opportunities driven by energy demand make it a top long-term investment.
Brookfield Renewable Partners
Brookfield Renewable Partners (TSX:BEP.UN) is another compelling energy stock. Its diversified portfolio of renewable energy assets positions it well to benefit from strong long-term demand tailwinds.
One of the biggest growth catalysts is the rapid expansion of AI-driven data centres, which are expected to consume significantly more electricity in the years ahead. At the same time, governments and corporations continue to accelerate investments in cleaner energy solutions to meet decarbonization goals. These long-term trends are creating a favourable backdrop for renewable power producers and increasing the value of Brookfield Renewable’s diversified portfolio of hydroelectric, wind, solar, and energy storage assets.
Notably, the vast majority of Brookfield’s revenue is secured through long-term power-purchase agreements, providing stable and recurring cash flows regardless of short-term market fluctuations. Moreover, many of these contracts include inflation-linked pricing provisions, helping protect earnings and cash generation.
The financial resilience and reliability of its cash flows have enabled Brookfield Renewable to increase its annual distribution by at least 5% for 15 consecutive years.
Looking ahead, Brookfield Renewable has multiple avenues for expansion. The company continues to recycle capital from mature assets into higher-return opportunities, while its growing development pipeline supports future earnings growth. Investments in battery storage, grid modernization projects, and other emerging clean-energy solutions further strengthen its long-term outlook.
With stable cash flows, a proven track record of distribution growth, and strong positioning in the renewable energy space, Brookfield Renewable Partners is a compelling investment to buy and hold.
