12 Best Canadian Energy Stocks To Buy and Hold In 2024

Best Canadian Energy Stocks

Best Canadian Energy Stocks

Canada is the sixth-largest energy producer in the world and the Canadian energy sector accounted for approximately 11.8% of the country’s GDP in 2022. Canadian energy companies exported $240.5 billion worth of goods to 133 countries with the United States accounting for 90% of the total. With the energy sector playing a pivotal role in Canada’s economy, investors are constantly seeking opportunities to capitalize on the sector’s growth potential. In this comprehensive guide, we will rank the top 10 Canadian energy stocks to buy in 2024, providing valuable insights and analysis to help investors make informed investment decisions.

Key Highlights:

  • Enbridge Inc. and Canadian Natural Resources are two of the best Canadian energy stocks to buy in 2024
  • The Canadian energy sector accounted for approximately 11.8% of the country’s GDP
  • Energy companies in Canada export approximately $240.5 billion worth of goods to 133 countries
  • 90% of Canadian energy exports are sent to the United States

Are Canadian Energy Stocks A Buy Right Now?

With the S&P500 reaching all-time highs, many Canadians are looking to find ways to protect their investments.

Recently, Canadian energy stocks have started to rebound but several companies remain undervalued. Companies like Enbridge offer an attractive 7.88% dividend yield, along with the potential for future growth. Meanwhile, Canadian Natural Resources, one of the top energy stocks, has climbed 131.4% over the past five years.

With Canada’s vast reserves of oil, natural gas, and renewable energy resources, energy stocks play a critical role in meeting domestic and global energy demand. Additionally, ongoing investments in infrastructure and technology advancements present opportunities for growth and innovation within the sector.

How To Buy The Best Canadian Energy Stocks

In 2024, the best investing apps make it easy to buy energy stocks and ETFs in Canada.

In just four easy steps, investors can receive free cash to invest in the best Canadian energy stocks right now.

At Questrade, new users can simply sign up, add funds, make a trade, and receive a $50 trade commission rebate to buy the best energy stocks in Canada.

Check out our step-by-step guide on how to buy the top energy stocks in Canada right now.

  1. Click here to sign up for a Questrade account
  2. Fill out the required documents with accurate personal information
  3. Add funds to your Questrade account
  4. Receive a $50 trade commission rebate to invest in the best energy stocks

Ranking The Best Canadian Energy Stocks To Buy in 2024

Energy stocks are among the best Canadian stocks to buy in 2024. From established industry giants to up-and-coming contenders, discover which stocks are leading the pack in Canada’s vibrant energy sector. Below, we’ll rank the best Canadian energy stocks to buy in 2024 based on their performance, growth potential, and market position.

  1. Enbridge (ENB.TO)
  2. Canadian Natural Resources (CNQ.TO)
  3. Suncor Energy Inc. (SU.TO)
  4. Cenovus Energy Inc. (CVE.TO)
  5. TC Energy (TRP.TO)
  6. Parkland Fuel (PKI.TO)
  7. Tourmaline Oil (TOU.TO)
  8. Pembina Pipeline Corporation (PPL.TO)
  9. Cameco Corporation (CCO.TO)
  10. Arc Resources. (ARX.TO)
  11. Topaz Energy (TPZ.TO)
  12. Imperial Oil (IMO.TO)

Analyzing The Best Canadian Energy Stocks To Buy In 2024

Canadian energy stocks offer diverse opportunities for growth, income, and portfolio diversification. Whether you’re a seasoned investor or just starting, this guide will serve as your roadmap to unlocking the potential of the Canadian energy sector and navigating the complexities of energy investing in today’s market. To learn more about the top 10 energy stocks in Canada, read on below.

1. Enbridge (ENB.TO) — The Best Canadian Energy Stock To Buy In 2024

Enbridge is one of The Best Canadian Energy Stocks To Buy That Pays A Dividend

  • Rating: ⭐⭐⭐⭐⭐
  • 52 Week Range: 42.75 – 54.05
  • Avg. Volume: 6,901,720
  • Market Cap: 98.755B
  • PE Ratio (TTM): 16.36
  • EPS (TTM): 2.84
  • Earnings Date: May 07, 2024
  • Forward Dividend & Yield: 3.66 (7.88%)

Enbridge represents a solid investment opportunity for Canadians seeking steady income streams and exposure to the evolving energy sector. With a diverse portfolio spanning pipelines, renewable energy, and natural gas distribution, Enbridge provides essential services facilitating the efficient movement of energy resources across North America.

One of the top energy stocks in Canada, Enbridge’s key strengths lie in its stable cash flow generation, supported by long-term contracts with creditworthy counterparties, which help mitigate revenue volatility. Additionally, the company’s extensive network and strategic assets offer a competitive advantage, enabling it to capitalize on growing energy demand and changing market dynamics.

Enbridge’s commitment to sustainability and transitioning towards renewable energy sources further enhances its long-term growth potential, aligning with global trends towards cleaner energy solutions.

2. Canadian Natural Resources (CNQ.TO) — Global Leader In Crude Oil & Natural Gas Production

Canadian Natural Resources is one of the best Canadian industrial stocks

  • Rating: ⭐⭐⭐⭐⭐
  • 52 Week Range: 67.13 – 93.44
  • Avg. Volume: 6,425,251
  • Market Cap: 92.597B
  • PE Ratio (TTM): 13.16
  • EPS (TTM): 6.47
  • Earnings Date: Feb 29, 2024
  • Forward Dividend & Yield:4.00 (4.70%)

As one of the largest independent crude oil and natural gas producers in the world, Canadian Natural Resources boasts a diverse asset base, including extensive reserves in the Western Canadian Sedimentary Basin and offshore developments. One of the top dividend stocks in Canada, CNQ offers investors a stable income with a $4.00 annual dividend payment and a 4.70% yield at the current stock price.

Investing in Canadian Natural Resources offers Canadians exposure to the domestic energy market, a crucial component of the nation’s economy. With a strong focus on operational efficiency and cost management, Canadian Natural Resources has consistently delivered solid financial performance, generating substantial cash flow even in challenging market conditions.

3. Suncor Energy Inc. (SU.TO) — Driving Sustainable Growth in Canada’s Energy Sector

Suncor Energy is one of the best Canadian blue chip stocks to buy right now.

  • Rating: ⭐⭐⭐⭐⭐
  • 52 Week Range: 37.09 – 48.26
  • Avg. Volume: 7,411,600
  • Market Cap: 57.732B
  • PE Ratio (TTM): 7.20
  • EPS (TTM): 6.19
  • Earnings Date: Feb 21, 2024
  • Forward Dividend & Yield: 2.18 (4.89%)

One of the largest integrated energy companies in Canada, Suncor boasts diverse operations spanning oil sands development, refining, and downstream distribution.

Buying Suncor stock provides Canadians with exposure to multiple facets of the energy value chain, from resource extraction to refined product delivery. This diversity helps mitigate risks associated with fluctuations in commodity prices, fostering stability in earnings and cash flows.

Dividend investors will also like Suncor Energy thanks to its attractive $2.18 annual dividend, which offers a 4.89% yield at the current stock price.

4. Cenovus Energy Inc. (CVE.TO) — Poised for Strong Performance Amidst Energy Market Trends

Cenovus Energy is one of the best Canadian energy stocks

  • Rating: ⭐⭐⭐⭐⭐
  • 52 Week Range: 19.82 – 29.18
  • Avg. Volume: 5,199,122
  • Market Cap: 43.894B
  • PE Ratio (TTM): 11.08
  • EPS (TTM): 2.12
  • Earnings Date: Apr 29, 2024
  • Forward Dividend & Yield: 0.56 (2.38%)

For Canadian investors seeking a unique blend of environmental stewardship, operational excellence, and community engagement in the energy sector, Cenovus Energy stands out as a compelling investment choice.

Renowned for its expertise in oil sands production, Cenovus stands as a key player in the country’s energy landscape. With a focus on responsible resource development, the company champions innovative technologies to minimize environmental impact while maximizing operational efficiency.

Investing in Cenovus provides Canadians with exposure to a dynamic energy company that offers an attractive 2.38% dividend yield, without sacrificing the potential for future growth.

5. TC Energy (TRP.TO) — Building Canada’s Energy Future with Confidence

TC Energy is one of the top energy stocks in Canada

  • Rating: ⭐⭐⭐⭐⭐
  • 52 Week Range: 43.70 – 57.02
  • Avg. Volume: 5,757,219
  • Market Cap: 55.319B
  • PE Ratio (TTM): 19.39
  • EPS (TTM): 2.75
  • Earnings Date: Apr 30, 2024
  • Forward Dividend & Yield: 3.84 (7.20%)

A cornerstone of the nation’s energy infrastructure, TC Energy specializes in building and operating pipelines that transport natural gas, crude oil, and other energy products across North America. Its extensive pipeline network makes it a crucial player in the energy industry, ensuring that resources can be efficiently transported to where they are needed.

One of TC Energy’s key strengths is its well-established infrastructure, which includes pipelines spanning thousands of kilometers. This vast network gives the company a competitive edge, enabling it to provide reliable and cost-effective transportation solutions to energy producers and consumers alike.

Overall, TC Energy’s essential role in energy transportation, coupled with its dedication to safety and sustainability, positions it as a dependable and valuable investment opportunity for Canadians looking to participate in the energy sector.

6. Parkland Corporation (PKI.TO) — Fuelling Innovation and Growth in the Canadian Energy Sector

Parkland Corporation is one of the best Canadian energy stocks to buy and sell in 2024.

  • Rating: ⭐⭐⭐⭐⭐
  • 52 Week Range: 27.50 – 47.37
  • Avg. Volume: 445,053
  • Market Cap: 8.045B
  • PE Ratio (TTM): 18.00
  • EPS (TTM): 2.54
  • Earnings Date: N/A
  • Forward Dividend & Yield: 1.36 (2.98%)

Parkland Fuel is a leading Canadian company specializing in fuel marketing and distribution. With a widespread network of gas stations, commercial fueling sites, and convenience stores across North America, Parkland plays a crucial role in providing fuel and related services to consumers and businesses.

A key pillar of Parkland’s competitive advantage lies in its extensive retail footprint, encompassing renowned brands such as Fas Gas Plus, Pioneer, and Ultramar. This widespread presence not only ensures broad market coverage but also fosters brand loyalty and customer engagement across diverse demographics and geographic regions.

From offering loyalty programs to providing alternative fuel options, such as electric vehicle charging stations, Parkland continuously adapts to meet evolving consumer demands and environmental concerns.

7. Tourmaline Oil (TOU.TO) — Exciting Opportunities Await in Canadian Oil and Gas

Tourmaline Energy Stock Canada

  • Rating: ⭐⭐⭐⭐
  • 52 Week Range: 52.34 – 74.21
  • Avg. Volume: 1,995,420
  • Market Cap: 19.502B
  • PE Ratio (TTM): 19.73
  • EPS (TTM): 2.90
  • Earnings Date: N/A
  • Forward Dividend & Yield: 1.12 (1.96%)

Known for its strong presence in Western Canada, Tourmaline Oil Corp. is one of the leading producers of natural gas in Canada.

What makes Tourmaline stand out is its focus on drilling and producing natural gas efficiently. Tourmaline boasts an extensive portfolio of high-quality natural gas assets, strategically located in prolific resource plays such as the Montney Formation.

The company’s expertise in exploring, developing, and extracting natural gas also gives it a competitive edge. By using advanced drilling techniques and technology, Tourmaline can get more gas out of its wells while keeping costs in check.

Another strength is its solid financial position and smart money management. Tourmaline is careful about how it spends and invests, which helps it weather ups and downs in gas prices and take advantage of growth opportunities when they arise.

8. Pembina Pipeline Corporation (PPL.TO) — Connecting Canada’s Energy Landscape for Success

Pembina Pipeline is one of the best energy stocks Canada has to offer.

  • Rating: ⭐⭐⭐⭐
  • 52 Week Range: 38.79 – 46.95
  • Avg. Volume: 2,462,972
  • Market Cap: 25.222B
  • PE Ratio (TTM): 21.16
  • EPS (TTM): 2.17
  • Earnings Date: Feb 22, 2024
  • Forward Dividend & Yield: 2.67 (5.82%)

Pembina Pipeline Corporation is a key player in Canada’s energy infrastructure sector, specializing in transporting and processing hydrocarbons like oil and natural gas.

What sets Pembina apart is its extensive network of pipelines and facilities across North America, which allows it to efficiently move energy products from where they’re produced to where they’re needed.

Pembina’s competitive advantage lies in its integrated approach to the energy value chain. Not only does it operate pipelines for transportation, but it also owns and operates processing plants and storage facilities.

This means Pembina can offer comprehensive solutions to its customers, providing services like gathering, transporting, and processing energy resources all in one package.

9. Cameco Corporation (CCO.TO) — Harnessing Nuclear Power for a Sustainable Tomorrow

Cameco Corporation is one of Canada's top energy stocks.

  • Rating: ⭐⭐⭐⭐
  • 52 Week Range: 32.65 – 69.18
  • Avg. Volume: 1,328,246
  • Market Cap: 24.687B
  • PE Ratio (TTM): 68.51
  • EPS (TTM): 0.83
  • Earnings Date: Apr 30, 2024
  • Forward Dividend & Yield: 0.12 (0.21%)

Cameco Corporation is a major player in the global uranium industry, specializing in mining and refining uranium ore. They’re big in Canada, the United States, and Kazakhstan, supplying uranium for nuclear power plants.

Cameco’s strength lies in its huge uranium reserves and ability to produce a lot of it. This is important because more countries are turning to nuclear power as a cleaner energy option.

What sets Cameco apart is that they handle everything from mining to refining, giving them better control over costs and quality.

Plus, they’re known for being reliable, safe, and environmentally friendly. This matters to investors who care about sustainability and safety.

10. Arc Resources (ARX.TO) — Pioneering Solutions for Canadian Energy Challenges

Arc Resources is one of the top Canadian energy stocks to buy right now

  • Rating: ⭐⭐⭐⭐
  • 52 Week Range: 14.34 – 23.76
  • Avg. Volume: 2,060,306
  • Market Cap: 13.37B
  • PE Ratio (TTM): 8.58
  • EPS (TTM): 2.16
  • Earnings Date: Feb 12, 2024
  • Forward Dividend & Yield: 0.68 (3.04%)

ARC Resources is a prominent entity in Canada’s energy landscape, specializing in the exploration, development, and production of crude oil, natural gas, and natural gas liquids primarily in Alberta and British Columbia. The company’s operational focus extends to leveraging advanced drilling techniques and technological innovations to optimize production efficiency and mitigate environmental impact.

A distinguishing feature of ARC Resources is its integrated business model, encompassing ownership and operation of key infrastructure such as pipelines and processing facilities. This integration facilitates streamlined transportation and processing of resources, enhancing operational efficiency and ensuring a competitive edge in the market.

Despite inherent industry challenges, including commodity price volatility, ARC Resources maintains a robust financial position, underpinned by prudent risk management and strategic capital allocation. This financial resilience, coupled with a commitment to sustainable growth, positions ARC Resources as an attractive investment opportunity for stakeholders seeking exposure to the Canadian energy sector.

11. Topaz Energy (TPZ.TO) — Emerging as a Top Contender in Canada’s Energy Sector

Topaz Energy Stock Canada

  • Rating: ⭐⭐⭐
  • 52 Week Range: 17.76 – 22.55
  • Avg. Volume: 220,756
  • Market Cap: 2.829B
  • PE Ratio (TTM): 61.12
  • EPS (TTM): 0.32
  • Earnings Date: Feb 26, 2024
  • Forward Dividend & Yield: 1.24 (6.34%)

With a focus on sustainable growth and value creation, Topaz Energy presents an appealing investment opportunity for stakeholders seeking exposure to the Canadian energy sector.

Topaz Energy Corp. specializes in the acquisition, development, and production of oil and natural gas reserves. Operating primarily in Alberta and British Columbia, Topaz focuses on optimizing operational efficiency and maximizing returns for its stakeholders.

A notable aspect of Topaz Energy’s strategy is its emphasis on leveraging technological advancements and innovative approaches to enhance production capabilities while minimizing environmental impact.

By adopting cutting-edge drilling techniques and reservoir management practices, the company strives to optimize resource recovery and uphold sustainable development principles.

12. Imperial Oil (IMO.TO) — Positioned for Profitability in Canada’s Oil Market

Imperial Oil Is One of the Best Canada Energy Stocks To Buy

  • Rating: ⭐⭐⭐
  • 52 Week Range: 60.19 – 85.11
  • Avg. Volume: ​​1,249,354
  • Market Cap: 43.269B
  • PE Ratio (TTM): 9.51
  • EPS (TTM): 8.49
  • Earnings Date: Apr 30, 2024
  • Forward Dividend & Yield: 2.40 (2.97%)

Imperial Oil is a prominent leader in Canada’s energy sector, with a strong foothold in both oil and natural gas production and refining. Their extensive experience and commitment to innovation make them a standout choice for investors seeking stability and growth potential in the energy market.

With a proven track record of efficient resource extraction and a keen focus on technological advancements, Imperial Oil is well-positioned to capitalize on opportunities in the ever-evolving energy landscape.

Comparing The Top Energy Stocks In Canada

Rank Company Symbol Market Cap Dividend & Yield
1 Enbridge ENB.TO 98.755B 3.66 (7.88%)
2 Canadian Natural Resources CNQ.TO 92.597B 4.00 (4.70%)
3 Suncor Energy Inc. SU.TO 57.732B 2.18 (4.89%)
4 Cenovus Energy Inc. CVE.TO 43.894B 0.56 (2.38%)
5 TC Energy TRP.TO 55.319B 3.84 (7.20%)
6 Parkland Fuel PKI.TO 8.045B 1.36 (2.98%)
7 Tourmaline Oil TOU.TO 19.502B 1.12 (1.96%)
8 Pembina Pipeline Corporation PPL.TO 25.222B 2.67 (5.82%)
9 Cameco Corporation CCO.TO 24.687B 0.12 (0.21%)
10 Arc Resources ARX.TO 13.37B 0.68 (3.04%)
11 Topaz Energy TPZ.TO 2.829B 1.24 (6.34%)
12 Imperial Oil IMO.TO 43.269B 2.40 (2.97%)

What Are Energy Stocks?

An energy stock refers to shares of a publicly traded company that operates within the energy sector. These companies are involved in the exploration, production, refining, distribution, or marketing of energy resources such as oil, natural gas, coal, and renewable energy sources like solar or wind power. Like some of the best Canadian bank stocks, many energy companies in Canada pay a dividends and offer a consistent revenue stream for income-oriented investors.

There are several different types of energy stocks in Canada. Canadian energy stocks can be categorized into different segments based on their primary activities, including upstream, midstream, downstream, and renewable energy companies.

Types of Energy Stocks in Canada

In Canada, the energy sector encompasses a variety of companies involved in different aspects of energy production, distribution, and services. Investors interested in the Canadian energy sector can choose from a diverse range of stocks based on their investment preferences and objectives.

Here are the different types of energy stocks in Canada along with examples of Canadian companies for each type.

Upstream Energy Stocks

These are involved in the exploration and production of oil and natural gas. They search for new reserves, drill wells, and extract hydrocarbons from underground reservoirs.

Examples:

  • Canadian Natural Resources Limited
  • Suncor Energy Inc.
  • Cenovus Energy Inc.
  • Imperial Oil Limited

Midstream Energy Stocks

These focus on transporting, storing, and processing energy resources. They operate pipelines, storage terminals, and processing facilities to move crude oil, natural gas, and refined products from production sites to end users.

Examples:

  • Enbridge Inc.
  • TC Energy Corporation
  • Pembina Pipeline Corporation
  • Keyera Corp.

Downstream Energy Stocks

These companies refine crude oil into products like gasoline, diesel, and jet fuel. They also market and distribute these products to consumers through gas stations, retail outlets, and wholesale channels.

Examples:

  • Husky Energy Inc.
  • Parkland Corporation
  • Gibson Energy Inc.
  • North West Refining Inc.

Renewable Energy Stocks

These companies produce energy from renewable sources such as solar, wind, hydro, or biomass. They may develop and operate renewable energy projects, manufacture renewable energy equipment, or provide related services.

Examples:

  • Brookfield Renewable Partners LP
  • TransAlta Renewables Inc.
  • Innergex Renewable Energy Inc.
  • Algonquin Power & Utilities Corp.

Can You Invest In Canadian Energy ETFs?

Yes, investors can invest in Canadian energy exchange-traded funds (ETFs) to gain exposure to the Canadian energy sector.

These ETFs provide a diversified portfolio of energy-related stocks, offering a convenient way to invest in the sector without having to select individual companies. Investing in Canadian energy ETFs also allows traders to benefit from potential growth opportunities while spreading out risk across multiple companies.

As with any investment, it’s essential to conduct thorough research and consider your investment objectives and risk tolerance before investing in ETFs.

Top Canadian Energy ETFs

Canadians can invest in several different Canadian ETFs to gain exposure to the energy sector.

Below, we’ll uncover some of the top Canadian energy ETFs to buy in 2024:

iShares S&P/TSX Capped Energy Index ETF (XEG.TO)

This ETF seeks to track the performance of the S&P/TSX Capped Energy Index, providing exposure to Canadian energy sector companies. It includes large and mid-cap companies engaged in the exploration, production, and distribution of oil and gas.

BMO Equal Weight Oil & Gas Index ETF (ZEO.TO)

This ETF aims to replicate the performance of the Solactive Equal Weight Canada Oil & Gas Index. It provides exposure to Canadian oil and gas companies but with an equal-weighting approach, meaning each company in the index has the same weight regardless of its market capitalization.

First Trust AlphaDEX Canadian Energy Sector Index ETF (FHE.TO)

This ETF seeks to replicate the performance of the NASDAQ AlphaDEX Canadian Energy Index. It employs a rules-based methodology to select and weight Canadian energy companies based on various fundamental factors, aiming to outperform traditional market-capitalization-weighted indexes.

CI First Asset Energy Giants Covered Call ETF (NXF.TO)

This ETF invests primarily in equity securities of large Canadian energy companies and writes covered call options on up to 33% of the portfolio to generate additional income. It focuses on providing exposure to established energy companies while generating income through options premiums.

Horizons Global Uranium Index ETF (HURA.TO)

This ETF seeks to replicate the performance of the Solactive Global Uranium Pure-Play Index. It provides exposure to global companies involved in uranium exploration, mining, and production, including Canadian uranium companies.

Best Stock Trading Apps To Buy Energy Stocks In Canada

Whether you’re a seasoned investor or just starting, choosing the right stock trading app can make all the difference in your investment journey.

Some stock trading apps offer commission-free trading and great promo offers while others are renowned for their robust research tools. Since each of the top stock trading apps in Canada offers various features and pricing structures, it’s essential to evaluate them based on your individual trading needs and preferences.

Below, we’ll break down some of the best stock trading apps to buy Canadian energy stocks and ETFs in 2024.

Questrade

Questrade is a popular online trading platform in Canada that offers a wide range of investment options, including stocks, ETFs, and options. It provides advanced trading tools and research resources for investors interested in trading energy stocks.

Wealthsimple

Wealthsimple is a commission-free trading platform that offers a user-friendly interface and allows you to buy and sell stocks, including energy stocks, with no commissions or account minimums.

Qtrade

Qtrade is known for its user-friendly platform and comprehensive research tools. It provides access to a wide range of investment products, including stocks, ETFs, mutual funds, bonds, and options. Qtrade Investor offers competitive pricing with no annual fees, and it provides access to research reports, analyst recommendations, and market data to help investors make informed decisions.

Why Buy Canadian Energy Stocks In 2024

Canadian energy stocks might not make the same type of headlines as crypto stocks or blue-chip stocks, but they remain an important part of a diversified portfolio. As the global energy demand continues to rise, the Canadian energy sector remains a compelling opportunity for investors in 2024.

Global energy demand reaches about 660 quadrillion Btu in 2050, up about 15% from current levels, according to a report from ExxonMobil. Currently, demand for fossil fuels (oil, gas, and coal) represents 66% of total energy demand, which positions Canada as a major player in the global energy landscape. Meanwhile, IEA World Energy Outlook estimates that electricity consumption will increase 50% by 2040.

Despite challenges such as fluctuating commodity prices and evolving regulatory landscapes, Canadian energy stocks offer unique advantages and potential growth opportunities for decades to come.

What Is The Best Canadian Energy Stock To Buy Right Now?

With a track record of delivering shareholder value, Enbridge Inc. is our top pick for the best Canadian energy stock to buy in 2024. Thanks to its stable cash flows derived from long-term, fee-based contracts, Enbridge offers investors predictable revenue streams and a consistent dividend yield, making it an attractive option for Canadian investors.