Canadian investors planning to buy top energy stocks in 2025 might consider Canadian Natural Resources Limited (TSX: CNQ), TC Energy (TSX: TRP), and Brookfield Renewable Partners (TSX: BEP.UN). These Canadian stocks are supported by solid businesses and generate stable, consistent cash flow. Moreover, these fundamentally strong companies continue to pay and increase their dividends.
Canadian Natural Resources Limited is one of the leading producers of oil and natural gas. Benefitting from long-life, low-decline assets, the company maintains stable production, thereby driving profitability. Strong earnings and cash flow support dividend payments and help the stock achieve above-average returns. This energy giant has raised its dividend at a compound annual growth rate (CAGR) of 21% over the past 25 years. Additionally, the stock offers an attractive yield of about 4.4%. The company’s robust balance sheet, focus on strategic acquisitions, and opportunities for low-capital, high-growth projects may accelerate growth in the coming years.
TC Energy is another compelling investment in the energy sector. This energy infrastructure company has a highly contracted and regulated asset base that generates stable earnings and strong cash flow, supporting increased dividends and rising stock prices. Notably, with growing cash flow, TC Energy has consistently increased its dividend. For example, since 2000, the dividend has been raised at a CAGR of 7%. Furthermore, the company is expected to increase its dividends by about 3-5% annually in the long term.
Brookfield Renewable Partners is a top investment option in the growing field of green energy. The company is one of the largest owners and operators of clean energy assets globally. Brookfield Renewable Partners’ long-term contracts and highly diversified renewable assets generate stable cash flow, providing consistent dividends and continually increasing payouts. Additionally, the company’s strategic acquisitions create promising prospects for future growth. The company aims to increase its dividends by 5% to 9% annually, while also offering a high yield of over 6%, making it an attractive choice for income investors.
