Energy Loves a New Year: 2 TSX Dividend Stocks That Could Shine in January 2026

January is when a lot of Tax-Free Savings Account (TFSA) investors get serious. As you look at the year ahead, you want something that feels practical, not complicated. Dividend stocks fit that mood as they turn patience into a small, repeating reward. Still, a juicy yield is only comforting if it’s supported by cash flow. In energy, that support can change quickly, so the best January stocks are the ones that can keep paying even when oil prices stop cooperating.

CVE

Cenovus Energy (TSX:CVE) is the kind of dividend stock that can look brilliant when the cycle is on your side. It’s a big Canadian producer with meaningful oil sands exposure, which usually means long-life assets and plenty of leverage to crude prices. When prices are healthy and operations are steady, the cash can pile up fast. That often shows up in bigger shareholder returns. It also has downstream refining assets, which can act like a shock absorber when upstream margins get squeezed. That diversification can make quarterly results less extreme than those of a pure producer, even though the dividend stock still trades with oil.

For new investors, the smartest way to frame Cenovus is as a cash-flow business first, and a dividend stock second. You want to see management fund the core operations, keep debt under control, and only then reward investors. If the Bank of Canada cuts rates in 2026, that can help sentiment. Yet it will not rescue an oil producer from weak commodity prices. Cenovus will still be driven mainly by oil pricing, differentials, and operating execution.

Valuation in energy also works differently than in banks or utilities. A low multiple can mean cheap, or it can mean the market thinks peak earnings are fading. With Cenovus, the practical signals to watch are simple. These include production stability, cost discipline, a clear plan for net debt, and a dividend that’s supported after maintenance spending. I like seeing buybacks tied to clear targets, not just enthusiasm after a strong quarter. If those boxes stay checked, the dividend stock can feel like a steady January pick. If they don’t, it can quickly become a lesson in volatility.

WCP

Whitecap Resources (TSX:WCP) is easier to understand as it lays out the dividend math in plain cash terms. In its third-quarter 2025 results, Whitecap reported net income of $191.6 million and funds flow of $346.3 million. After capital spending and distributions, it generated free funds flow of $204.4 million, which is the kind of cushion income investors like to see.

Whitecap also kept its income story simple. It maintained a monthly dividend of $0.0608 per share. That monthly rhythm can be perfect for a TFSA as it feels like a recurring paycheque, and it can soften the emotional sting of energy volatility. Market data around the same time showed a forward annual dividend of about $0.73 per share and a forward yield around 6.8%. This underlines that income is a big part of the return profile.

The balancing act is that Whitecap’s cash flow still depends on oil and natural gas prices, and that can turn a comfortable yield into a stressful one if prices slide. The reassuring part of the quarter is that the dividend sat inside meaningful free funds flow rather than relying on optimistic assumptions. The key thing to track into early 2026 is whether free funds flow stays positive after sustaining capital expenditure, and whether the balance sheet stays manageable through the cycle.

Bottom line

Put together, Cenovus and Whitecap can shine in January 2026, but only if you treat them like what they are: cyclical dividend payers. These can deliver real cash and can also test your nerves. For instance, here’s what $7,000 right now could bring in for investors today.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDEND TOTAL ANNUALPAYOUTFREQUENCYTOTAL INVESTMENTCVE$22.32313$0.80$250.40Quarterly$6,986.16WCP$11.10630$0.73$459.90Quarterly$6,993.00

A beginner-friendly approach is to size stocks modestly, pair them with steadier sectors elsewhere in the TFSA, and judge them on cash discipline more than headlines. Do that, and the dividends can feel like payday season without turning your new-year portfolio into a rollercoaster.

The post Energy Loves a New Year: 2 TSX Dividend Stocks That Could Shine in January 2026 appeared first on The Motley Fool Canada.

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More reading

• Cenovus Energy: Should You Buy the Pullback?
• The January Effect Is Real: 5 Canadian Stocks That Could Pop First
• Buy 2,000 Shares of This Top Dividend Stock for $121.67/Month in Passive Income
• 2 Worry-Free High-Yield Dividend Stocks for 2026
• 3 Secret-ish Bargains as the TSX Keeps Topping Record Highs

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