With all the volatility dominating global markets right now, there are plenty of reasons why some investors may be concerned about what the future may hold. Inflationary pressures are picking up, as oil prices continue to surge due to ongoing geopolitical conflicts in the Middle East.

That said, there are some companies like Whitecap Resources (TSX:WCP) that I continue to think are excellent long-term bets.

Here’s why I think Whitecap’s monthly dividend makes it a top yield-producing option for investors right now.

Is there a bubble building in energy stocks?

I think there’s something to be said about the euphoria we’re starting to see from certain corners of the market around energy stocks as a whole. In some regards, there’s a good reason for the investor perspective that more energy exposure is better than less right now.

For one, surging commodity prices (namely, oil and gas) have led companies like Whitecap to see record profitability. In many cases, energy producers have passed these increased profits off to investors in the form of dividends. Indeed, Whitecap’s monthly dividend yield that’s still above 4.5% is impressive, considering this is a stock that’s seen remarkable triple-digit returns over the past year.

Thus, while there are plenty of naysayers and pundits suggesting a bubble may be brewing in the energy market (and I think there’s something to that idea), I also think that top-quality mid-tier producers with solid cash flow at lower breakeven prices per barrel, such as Whitecap, could continue to outperform.

Why Whitecap?

Whitecap’s record 2025 results speak volumes about the company’s ability to thrive in any sort of commodity price environment. With fund flows of nearly $3 billion last year, and double-digit total returns seen on most financial metrics, this is a stock that’s deserving of its rapid recent rise.

Accordingly, for those who expect to see oil prices continue to head even higher, this is a stock with ample leverage to these trends. That’s why I think so many investors are considering loading up on shares of WCP stock right now. Insofar as recent trends are concerned, Whitecap is one stock that’s perhaps the best-positioned and most fundamentally sound of many out there, making this a quality pick for those seeking monthly income, value, or growth. Personally, I like all three, and Whitecap checks all the boxes for me.

What about Whitecap’s valuation?

A 4.5% dividend yield paid monthly is great. But if investors have to put too many of today’s dollars to work to achieve this yield, one could argue that going with much safer government bonds (many of which carry very similar yields) could be the better way to go. Indeed, valuation always matters, but perhaps more today than at other points in the market cycle, given where the current market valuation sits.

On this front, Whitecap still looks like a steal. With a forward price-to-earnings ratio still in the single digits, this is a stock that could have much more upside potential no matter where energy prices are headed.

Outside of a major shock that takes commodity prices lower, I think the trend will remain to the upside for holders of WCP stock. That’s why this company remains a top pick of mine right now.

The post TFSA Investors: 1 Perfect Monthly Dividend Stock With a 4.5% Yield appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Whitecap Resources. The Motley Fool has a disclosure policy.

Finding top-tier growth stocks to buy and hold for the long-term (which can be hard to define, but I’m going to say a decade or longer) can be difficult. That said, there are a number of top Canadian options I have on my radar that I think are worth considering by investors of most risk tolerance levels and ages.

Among the leading companies I continue to tout as a top option for investors seeking tech exposure outside of the U.S. is Shopify (TSX:SHOP).

Here’s why I think this mega-cap Canadian stock is worth buying right now and holding onto.

A clear long-term growth story

Since Shopify’s IPO in 2015, this stock’s split-adjusted return over a little more than a decade is more than 7,400%. Yup, you read that right – more than 74 times its original offering price. For early investors, this was a great bet.

Much of the gains Shopify has seen has come in recent years, with the pandemic providing the most notable driver. With global government shutdowns, companies had to resort to setting up online shops to survive. Since then, e-commerce sales have continued to grow at roughly double the pace (or more) than that of bricks-and-mortar retail. That’s a trend I expect to continue.

In Shopify’s most recent quarterly results, this picture has been maintained. The company’s revenue grew by more than 30%, with the stock providing a free cash flow margin of 17% (very impressive) and strong bottom-line growth.

I think that so long as investors believe that underlying growth trends supporting the e-commerce revolution remain in place, Shopify continues to be the top way to play this space.

Valuation matters

On the way higher, Shopify has maintained an elevated valuation multiple. There are good reasons for this.

A company that previously grew its revenue at a triple-digit pace (and took a while to get profitable), many investors drew parallels to other major e-commerce and tech players that have since seen their earnings take off. That’s been the case for Shopify as well, with the company solidly profitable.

Now, this stock still trades at a forward price-earnings multiple of 67 times earnings and more than 13 times sales. That’s not cheap. But compared to where this stock has traded in the past, some could argue this is a relative bargain for those willing to jump aboard.

I think that so long as Shopify’s top and bottom-line growth rates can continue to remain above the 20% threshold for the next five years, this is a stock that will end up looking cheap in hindsight. For now, there’s little to dissuade me from the idea that this trend can’t continue.

The post 1 Standout Growth Stock Worth Buying Today and Holding for the Long Haul appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

If you want Canadian yield-generating names with real momentum, the best setups right now are the ones pairing strong top-line expansion with improving margins and visible forward guidance.

That’s where the market tends to reward investors most, especially when earnings power is still accelerating beneath the surface. Here are three companies I think fit the bill for those searching for the best Canadian dividend stocks in the market right now.

Fortis

Perhaps my top long-term dividend stock pick on the TSX, Fortis (TSX:FTS) is a company I think fits most investor portfolios well. The utility giant has boasted more than five decades of consecutive annual dividend increases, and is simply one of the best dividend growth stocks in the market overall.

This incredible dividend compounding over time is the direct result of a durable business model that generates highly predictable cash flow from a large customer base across Canada, the U.S., and the Caribbean. That matters because utilities do not need booming economic conditions to perform. Rather, they need regulated returns, disciplined capital spending, and steady rate-base growth. In a market that still feels choppy, that combination can be powerful.​

What makes Fortis attractive now is the balance between defence and growth it provides investors. For those looking for solid dividend growth and total return upside over the long term, Fortis should continue to be a winner.

Royal Bank of Canada

As far as Canadian blue chip giants that have more room to run, Royal Bank of Canada (TSX:RY) is another top pick on my list.

As Canada’s most valuable company in terms of market capitalization (at a current market cap of more than $315 billion), this is perhaps the bluest of all blue-chip stocks in the market.

Indeed, I think that Royal Bank of Canada looks like a blue-chip that still has room to run. Some of that has to do with robust fundamentals. The company recently beat bottom-line estimates by a rather wide margin, raised its dividend by more than 6%, and now expects return on equity above 17% for fiscal 2026. To me, that’s a strong signal that the business is firing on all cylinders.

The bank also continues to deliver across capital markets and wealth management, two areas that can add meaningful earnings power when markets are active.

For dividend investors, the appeal is simple. Royal Bank combines scale, profitability, and a long history of rewarding shareholders. It has paid dividends for 54 consecutive years, and analysts noted continued earnings beats alongside a current yield near 2.8%. That is not the highest yield in Canada, but it is a very high-quality payout backed by a dominant franchise.

So, if loan growth and fee income stay healthy, I think RY stock could keep compounding nicely from here.

Capital Power

Last, but certainly not least on this list of top dividend stocks for investors to consider is Capital Power (TSX:CPX).

This utility giant has seen solid gains in recent years, in part due to the kind of cash flows the company generates. Capital Power, like other utility majors, has most of its revenue flow in via regulated contracts. This provides cash flow stability, which should support long-term capital appreciation upside. Accordingly, rising energy prices are really a smaller contributor to this stock’s recent performance than its stability profile.

That’s not to say that rising energy prices and surging electricity and natural gas demand haven’t positively impacted the company’s share price. It has.

With earnings expected to rise more than 50% this year after a strong 2025, there’s a lot for investors to price in. They’ve been doing just that, but I think more in the way of stock price appreciation is coming.

Capital Power is an independent power generator with assets across Canada and the U.S., and that geographic diversification helps reduce single-market risk. When you pair a growing earnings base with a decent yield and a business tied to long-term power demand, the stock becomes much more interesting. For investors willing to look past short-term volatility, this is a name that could surprise to the upside over the next year.

The post 3 Canadian Dividend Stocks Perfect for Retirees appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Capital Power and Fortis. The Motley Fool has a disclosure policy.

Canadian equities are still flying under the radar. I’d argue that’s probably going to be the case moving forward, despite the strong earnings momentum underpinning some of the best Canadian stocks in the market.

And with interest rates likely to continue to trend lower, particularly in the Canadian market, the TSX is a special place for investors to search for undervalued opportunities right now.

With that in mind, here are two of my top picks for those seeking meaningful long-term total returns (and valuations that don’t make one’s eyes water).

Intact Financial

Property and casualty insurance giant Intact Financial (TSX:IFC) is one of the top options for long-term investors in this market, in my view.

Given the company’s reasonable valuation relative to U.S. peers and a compelling dividend yield, this is a market where patient buyers can let fundamentals do the heavy lifting.

Intact is a property and casualty insurance leader that’s executed through every part of the cycle. The company has posted consistent underwriting profits, with a long history of sub‑100% combined ratios that speak to disciplined risk management and pricing power.

Scale from its Canadian and international platforms supports stable mid‑single‑digit premium growth. That’s while steady rate increases and prudent reserving underpin growing book value per share. Intact’s balance sheet remains strong, supporting a growing dividend that has increased regularly, reflecting confidence in future cash flows.

A valuation that couldn’t be more attractive

I think the key aspect of finding true value stocks is that the relatively low multiple the market is assigning a given company needs to come with some sort of big caveat. In the case of Intact Financial, this company’s trailing and forward price-to-earnings multiple around 13 times is screaming value.

That’s because this is a company with a solid track record of earnings resilience and capital allocation. Thus, in my view, a premium multiple to the market may be warranted in this case, particularly for investors seeking durable total returns.

With a dividend yield of 2.4%, plenty of free cash flow generation, and strong underlying fundamentals, I think the near-20% dip we’ve seen in IFC stock over the course of the past 12 months makes this a solid buying opportunity here. The insurance business has been under some pressure from the market, given the composition of assets held on these companies’ balance sheets (ahem, private credit). As far as I can tell, Intact has steered clear of many of the key issues assuaging this sector.

In my view, this is a stock investors would do well to ignore the noise on and consider legging into at current levels. I am.

The post Some of the Smartest Canadian Investors Are Piling Into This TSX Stock appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Intact Financial. The Motley Fool has a disclosure policy.

A well-diversified portfolio of stocks should include names in various sectors and geographies, with different underlying business models that provide portfolio protection in downturns and smooth out returns over the long haul. That’s the theory, anyway.

In that light, I think these two Canadian stocks could be primed for a big move in 2026. Here’s why I think these two Canadian stocks look like solid value opportunities relative to their sectors (and the broader markets), and why they look compelling today.

Canadian National Railway

Canadian National Railway (TSX:CNR) is the total return giant I think most investors are looking for. Indeed, this company has quietly compounded shareholder wealth for decades, powered by an irreplaceable North American network and disciplined cost control. As supply chains normalize and North American industrial activity gradually improves into 2026, CN Rail stands to benefit from rising volumes across intermodal, grain, energy, and automotive freight.

This company’s business model is built on high fixed costs and powerful operating leverage. Once trains are running and tracks are maintained, incremental carloads tend to fall heavily to the bottom line. That means even modest volume growth in 2026 could translate into outsized earnings growth.

That goes double for those who expect that CN’s management team will continue to push efficiency improvements and pricing discipline. Longer term, CN remains a beneficiary of onshoring and “friend‑shoring” trends, as manufacturers seek more reliable North American logistics corridors.

Manulife Financial

Another top stock I continue to tout as a value (and long-term total returns) play is Manulife Financial (TSX:MFC).

Indeed, Manulife has long been viewed as a steady, somewhat unexciting insurer, or one that’s good for income, and less so for growth. That perception is starting to shift, and 2026 could be the year the market fully re‑rates this global financial powerhouse. The company has been simplifying its portfolio, pivoting to higher‑return businesses like wealth and asset management, and leaning into its sizable presence in faster‑growing Asian markets.

Additionally, the insurer has continued to sell off its capital-intensive business units, focusing instead on its profit centers. As it does so, Manulife’s earnings mix has become cleaner and more predictable. Pair that with rising fee‑based revenue and a healthier balance sheet, and you have a business that can support stronger, more consistent dividend growth while buying back shares under a still‑modest multiple.

If interest rates drift lower but remain above the ultra‑low levels of the last decade, insurers like Manulife can enjoy better investment spreads without the same pressure on their guarantees. Add in demographic tailwinds for retirement and wealth solutions, and the setup for mid‑single‑digit to high‑single‑digit earnings growth looks compelling into 2026 and beyond.

The post 2 Canadian Stocks Primed to Surge in 2026 appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.

With volatility on the rise, investors have plenty of uncertainty to price into their potential future gains. As such, many investors are rightly rotating into more defensive names, to take the sting off of what could be a prolonged sell-off. That is, if these geopolitical conflicts continue to raise the price of oil and, in turn, push inflationary pressures higher around the world.

That said, investors searching for market-beating growth still have a number of excellent options to pursue right now, in my view. Here are two of the best growth stocks Canada has to offer, and what these names could do for a portfolio over the long term.

Celestica

One of my top AI-related growth darlings in Canada, Celestica (TSX:CLS) has been on a tear in recent years, as the chart below shows.

That’s due in part to the fact that Celestica is quickly transforming from a sleepy contract manufacturer into a core picks-and-shovels play on the AI data-centre boom. In its most recent quarter, the company delivered 28% year-over-year revenue growth. What’s perhaps more impressive is that this top-line growth actually led to an eye-popping 58% earnings-per-share increase, handily beating expectations and showcasing serious operating leverage.

What that means to me is that Celestica is seeing not only margin expansion (key to the investment thesis behind most major growth stocks), but it’s also seeing robust organic growth. Indeed, this isn’t just cyclical froth we’re talking about here. This growth is anchored in long-term programs with blue-chip customers building out AI and cloud infrastructure.

If Celestica can sustain even mid-teens top-line expansion while keeping EPS growth well ahead of revenue, multiple expansion alone could drive significant upside over the next year. For growth investors seeking both momentum and fundamentals, this is a name I’d keep at the top of my buy list right now.

Enerflex

One company I don’t talk about enough (but probably should in this environment) is Enerflex (TSX:EFX).

That’s because this is a company offering everything I like in a growth story. There’s visible, contracted cash flows riding a powerful secular theme (rising global natural gas demand). That provides attractive upside if Enerflex’s management executes. The company benefits from higher North American gas volumes, long-term infrastructure contracts, and a growing base of high-margin recurring service revenue that can steadily expand earnings and de-risk the story.

Fundamentally, Enerflex is set up for operating leverage as it works through its project backlog and leans into more capital-light service and infrastructure income. That mix shift supports improving margins, stronger free cash flow generation, and balance-sheet flexibility. This creates room for debt reduction and, over time, potential capital returns to shareholders.

With structural tailwinds from global electrification and gas-fired power, the market may still be underestimating Enerflex’s medium-term growth runway. If earnings and free cash flow surprise to the upside as projects ramp and service revenue scales, I wouldn’t be shocked to see this stock re-rate sharply higher over the next 12 months.

The post 2 Canadian Growth Stocks I Expect to Skyrocket in the Next Year appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Celestica and Enerflex. The Motley Fool has a disclosure policy.

In the world of Canadian investing, there are a number of top undervalued stocks I continue to come back to. However, in this piece, I thought I’d explore two companies that many investors may not necessarily consider to be true value plays, given their industries.

Now, in alignment with industry multiples, both these particular stocks are near the mid-point of the valuation range. That said, for those thinking long term, here’s why I think these stocks present a true value argument right now and are worth buying before we head into Q1.

Canadian Apartments REIT

Canadian Apartment REIT (TSX:CAR.UN), or CAP REIT for short, is one of my top picks in the real estate investment trust (REIT) world.

This firm allows investors to take advantage of what I see as mispricing in the world of real estate. After all, this is one of the country’s leading residential landlords, with significant supply in key landlocked and supply-constrained markets such as Vancouver, Toronto, and Montreal.

On a price-to-AFFO basis, CAP REIT is trading at levels we haven’t seen in more than a decade. That’s despite structurally tight rental markets, rising replacement costs, and essentially no easy way to add new supply in core urban centres. You’re getting a business with embedded inflation protection. Rents reset over time, while the debt is largely fixed. And these rents are currently being discounted at a rate typically reserved for troubled operators, not one of the strongest residential platforms in the country.​

Investors today can lock in an attractive distribution while they wait, with the real upside coming if and when rates start to normalize and cap rates compress. If that plays out, unit prices don’t just grind higher. They can re-rate sharply as the market remembers that essential shelter demand doesn’t vanish because headlines turn negative. For investors with a three-to-five-year lens, buying a best‑in‑class landlord when everyone is still anchored to rate fears looks like a textbook contrarian value move.

Bank of Nova Scotia

Another company that goes by a moniker (in this case, Scotiabank), Bank of Nova Scotia (TSX:BNS) is another top value pick on my radar right now.

Indeed, Canadian bank stocks aren’t often “cheap,” but every so often sentiment overshoots. And that’s when patient investors tend to make their best money.

Bank of Nova Scotia (BNS) fits that bill today. The stock trades roughly 10% below its recent 52-week high, even as the bank continues to offer one of the more generous dividends among the Big Six. You’re being paid a hefty yield in the mid-4% range to wait for a turnaround in both earnings momentum and investor perception.

Thus, for investors seeking a mix of dividend yield and value, this is a top pick of mine right now. When we ultimately see the current choppy conditions improve, I think BNS stock is likely to be one big beneficiary of a move toward safety. Right now, Canadian bank stocks appear much safer than their global peers, so I wouldn’t be surprised to see a flood of investor capital move toward this space.

The post 2 Cheap Canadian Stocks to Pick Up Now appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia. The Motley Fool has a disclosure policy.

Plenty of investors are looking for the kind of blue-chip Canadian energy stock that long-term investors can buy, tuck away, and let do the heavy lifting in their portfolios right now. In a sector that remains volatile, Suncor (TSX:SU) is one particular stock I have in mind.

This Canadian energy stock has a fully integrated model, improving balance sheet, and shareholder-friendly capital allocation, making it a top name to consider today.

Without further ado, let’s dive in.

Structural strength is impressive

Over the past few years, Suncor has quietly transformed itself from a more cyclical producer into a leaner industrial-style operator with improving predictability.

The company has posted record upstream production and record refining throughput, with asset utilization at or above 100%. To me, this signals a more efficient and resilient asset base. Management has also guided toward robust production levels in 2025 and beyond. That’s despite heavy expected maintenance, which tells me they’re confident in both the cost structure and reliability of operations.

That operational strength shows up in the numbers. With that, let’s dive into what Suncor has reported, and why this is a gem long-term investors should consider right now.

A balance sheet to be envied by the sector

Where Suncor really separates itself, in my view, is how it’s using its impressive cash hoard, driven by oil surging to well above US$100 per barrel, on the Brent side.

The company has continued to reduce its net debt down to roughly the company’s stated target, recently hitting the range of $6 billion to $8 billion, the lowest level in more than a decade. That deleveraging has gone hand in hand with rising shareholder returns. Suncor generated roughly $7.4 billion in free funds flow in 2024 and returned about $5.7 billion to investors through dividends and buybacks.

Today, investors get a solid dividend yield in the 2.8% range. And importantly, this yield is backed by a history of dividend growth, including high single- to low double-digit hikes in recent quarters. On top of that, Suncor has authorized roughly $3.3 billion of share repurchases in 2026, buying back stock at what still looks like a reasonable valuation in the low-teens forward price-to-earnings range.

For investors seeking a mix of income, value, and growth, that’s a compelling package.

Why buy Suncor stock right now?

In my view, putting this all together, investors have the opportunity to buy a large-cap, integrated producer with record production and utilization, structurally lower breakevens, a much stronger balance sheet, and an explicit mandate to send “all excess funds” back to shareholders.

Even after a multi-year rally, the stock still trades at a modest earnings multiple for a business generating billions in free cash flow and steadily reducing risk. That’s my kind of buying opportunity, and one I think investors should at least consider right now.

The post 1 Canadian Energy Stock Quietly Positioning for a Big Year appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald 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.

With commodity prices globally surging thanks to the ongoing U.S./Israel-Iran conflict, there are now new fears that surging oil prices could lead to the next wave of inflation, which could impact many investors in a very negative way.

That said, there are companies within the oil and gas sector which could be big beneficiaries, and we’re already seeing a broad-based rotation toward these names right now. Here are three top ideas for investors looking to benefit from rising oil prices over the long term.

Canadian Natural Resources

One of my favourite dividend-paying Canadian energy stocks, Canadian Natural Resources (TSX:CNQ) has a beautiful chart, shown below.

Shares of this top-tier oil sands producer have been surging, in part due to the company’s record oil production, solid margins, and sturdy balance sheet. However, I think this stock price spike is more tied to the company’s massive reserves and a re-rating of the value of those reserves over the coming decades.

That’s the case with most oil majors right now. But with high single-digit production growth and plenty of room for dividend hikes over time (not to mention a current dividend yield of 3.7%), there’s a lot to like about how Canadian Natural is positioned right now.

ExxonMobil

My first U.S.-based pick of this list, ExxonMobil (NYSE:XOM) has long been among the world’s largest crude producers globally for decades.

As such, when we talk about sheer reserves, this company takes the cake (outside of Saudi Aramco, really). The company’s fully integrated business model provides incredible stability, even in times of oil price declines. Owning almost the entire value chain, from upstream production to refining, chemicals, and retail (gas stations), Exxon has investors covered in terms of delivering actual value to consumers.

With a fortress balance sheet and decades of dividend income provided to investors (at the 3% level or higher), this is a top way I think investors can think about playing oil and gas right now.

Chevron

Another leading U.S. energy major, Chevron (NYSE:CVX) has also seen incredible price appreciation of late, due to most of the same catalysts.

Indeed, Chevron offers investors a similar defensive appeal to the other names on this list. With premier assets in the Permian Basin, as well as in Australia and Kazakhstan, the geopolitical risk now being priced into every sector is relatively widespread. That’s a good thing for investors looking for disciplined capital returns (dividends and share buybacks) over time, as Chevron has provided both in spades.

Trading at an attractive valuation compared to its peers, Chevron looks like a top-tier pick for investors looking for outsized exposure to this energy price surge right now.

The post The Oil Shock Is Here: How to Protect Your Investments Now appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Chevron. The Motley Fool has a disclosure policy.

Most Canadian investors are well aware that oil prices are once again shooting to the moon. As a culmination of geopolitical tensions boiling over in the Middle East, supply disruptions through critical chokepoints like the Strait of Hormuz, and global demand holding firm despite whispers of a slowdown, this sector is primed for outsized gains.

For investors looking to take advantage of where oil prices have already gone so far in 2026, and where oil prices could be headed over the medium-term, there are a few ways to play this trend. I’m going to cover a few top energy stocks I think can outperform right now, and why the energy sector overall is one worth considering.

Where could oil prices be headed?

Oil prices have already spiked from the $70s to more than $100 per barrel recently. Unfortunately for consumers and those concerned about inflation, I see clear catalysts pushing them even higher. Personally, I think we’ll see $120 oil in short order, and I am not dismissing expert opinions that we could be seeing $200 oil in the near term.

Why the surge? Start with the headlines screaming from every financial feed. Escalating U.S.-Iran frictions and regional instability have traders on edge. History shows regime changes or conflicts in major producers like Iran trigger average crude spikes of 76% from disruption to peak.

We’re seeing that play out now, with Brent crude retracting only modestly after hitting $120 earlier this month. Even as world powers release strategic reserves for short-term relief, analysts agree this is a band-aid. I think volatility will persist, and prices will stay elevated as factions vie for control in Iran, disrupting 20% of global oil exports.

How to invest in this trend right now?

The good news for Canadian investors is that there is a plethora of world-class energy stocks to choose from that can provide amplified upside to these trends.

Enbridge (TSX:ENB) is among my top dividend stock picks for investors looking to play this trend defensively.

The company’s secure cash flows, driven by long-term volume-based contracts provide stability in times of rising (and declining) oil prices.

Then we have Suncor Energy (TSX:SU), with its integrated model and massive oil sands leverage.

Currently up 25% YTD already, I think there’s still room for Suncor to double, if oil can hold its triple-digit levels for a sustained period.

Or, investors could opt for Canadian Natural Resources (TSX:CNQ), a major oil player that cranks out low-cost barrels with impeccable balance sheet strength.

These aren’t speculative junior companies in the energy sector. I’m focsued on top-shelf blue-chips names positioned to ride the wave of oil prices higher for the remainder of 2026.

The post Canadian Investors: Here’s the 1 Sector You Want to Own When Oil Surges appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy.