Canada Wants to Become an Energy Superpower: 3 TSX Stocks I’d Buy Now

Canada’s “energy superpower” pitch isn’t just about resources; it’s about the pipes, fuel, and wires that turn them into exports.

Key Points
  • TC Energy moves natural gas for LNG and power demand, and pays an income-style dividend backed by contracts.
  • Cameco benefits from nuclear buildouts across the fuel cycle, but the stock already prices in a lot of optimism.
  • Hydro One is the grid pick, earning regulated returns as transmission expands, though valuation is not cheap.

Canada has enough oil, natural gas, uranium, and hydroelectricity to make an energy trader need a bigger spreadsheet.

The problem has never really been what sits underground or rushes through Canadian rivers. It’s turning all of that into infrastructure, exports and actual earnings.

That was a recurring message at the Canada Investment Summit.

oil pumps at sunset

Source: Getty Images

Full potential

Prime Minister Mark Carney told investors Canada was “unleashing our full potential as an energy superpower.” His definition was surprisingly broad. It included a new pipeline carrying at least one million barrels of Alberta oil per day toward Asia, LNG exports potentially quadrupling over time, more uranium production, new nuclear reactors and an electricity grid twice its current size.

“That is what an energy superpower looks like when it decides to act like one.”

Former prime minister Stephen Harper echoed the theme in his closing address. “Whatever the energy mix of the future, Canada should be a major and a global supplier.”

So, what does that actually mean for investors? I see three very different opportunities.

TRP

TC Energy (TSX: TRP) owns roughly 94,000 kilometres of natural gas pipelines connecting producers with utilities, industry, power plants and LNG export terminals across North America.

That puts it directly in the path of two summit themes. Canada wants more LNG exports. Meanwhile, artificial intelligence (AI), and data centres are pushing electricity demand higher, increasing the potential need for dependable gas-fired generation.

TC Energy’s second-quarter comparable earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed to $2.9 billion, up from $2.6 billion a year earlier. Management sanctioned roughly $3 billion of new projects during the first half of 2026, many backed by long-term contracts.

At about $86 per share, the stock offers a dividend yield around 4.1%. The risk is valuation and debt. At roughly 23 times forward earnings, TRP isn’t hiding unnoticed in the bargain aisle. Still, about 98% of comparable EBITDA comes from regulated assets or long-term contracts. That makes it my income pick.

CCO

Carney specifically promised to build nuclear power “across the value chain” while expanding Canada’s uranium production. Few Canadian stocks connect those two pieces better than Cameco (TSX: CCO).

Cameco mines uranium and provides nuclear fuel services. Through its ownership interest in Westinghouse, it also participates in reactor technology and services. That means investors aren’t simply betting on uranium prices, but exposure across much more of the nuclear chain.

Cameco finished June with $1.1 billion in cash against about $1 billion of debt, while first-half uranium adjusted EBITDA rose to $676 million. There’s just one small glowing warning sign: valuation. At roughly $130, Cameco trades near 67 times forward earnings. Nuclear demand may be booming, but investors are already paying handsomely for it. I’d buy gradually rather than chase it.

H

The least glamorous energy-superpower stock may actually have the broadest opportunity. Carney wants Canada to double its electricity grid. Whether the winning source of new electricity is nuclear, hydro, natural gas, wind or something we haven’t built yet, those electrons need wires.

Hydro One (TSX: H) owns approximately 30,000 circuit kilometres of high-voltage transmission lines across Ontario. As approved transmission investments enter service, they expand the company’s regulated asset base, supporting future earnings.

Hydro One recently traded near $52, offering a 2.7% dividend yield. The dividend has also grown at roughly a 6% annual rate in recent years. At around 22 times forward earnings, it’s no screaming bargain. Yet regulated utilities don’t need commodity prices to cooperate.

Bottom line

Canada’s energy-superpower ambitions contain plenty of moving parts. TC Energy moves the gas. Cameco supplies nuclear fuel. Hydro One helps move the electricity.

Investors don’t need to guess which energy source wins everything. Canada may need considerably more of all three.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.

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