Energy Stocks Could Be Canada’s Secret Weapon in 2026

The energy sector has long been a pillar of the TSX. This has only intensified in 2026, as a renewed focus on energy security is creating a unique entry point for investors. In fact, investors seeking stability, income, and long-term growth potential will find that energy stocks can offer a unique mix that few other sectors can match.

Why 2026 is all about Canadian energy

Global energy markets are witnessing something unique. Following years of underinvestment in large-scale projects, supply growth remains limited. Adding to this, geopolitical risks and market volatility continue to influence pricing. For Canada, this confluence of events plays into the strengths of its energy sector.

Here’s a trio of stocks that are set to benefit from that current market opportunity.

Unmatched cash flow and production

Some of the best energy stocks on the market benefit from long-life, low-decline assets. This allows those energy stocks to generate substantial cash flow, irrespective of how oil prices move.

One company that personifies this is Canadian Natural Resources (TSX:CNQ). The company’s stability in the market, fueled by its impressive portfolio and disciplined approach, has allowed it to provide consistent dividend growth and strong capital returns.

That’s a key reason behind the impressive 33% gain the stock has made over the past year.

Canadian Natural Resources’ efficient yet defensive operations make it a standout pick for 2026. The company’s stable cash flow and defensive appeal also means that it can offer one of the most attractive dividends on the market.

As of the time of writing, Canadian Natural Resources offers a yield of 4.1%. The company has also provided annual upticks to that dividend going back 25 years without fail, making it a top option for income-seeking investors.

Integrated strength and reliable income

Suncor Energy (TSX:SU) is another top pick among Canada’s energy stocks that warrants mention. In fact, Suncor offers investors a different kind of stability. As an integrated energy company, Suncor benefits from both upstream production and downstream refining and retail operations.

That integrated business model means that Suncor isn’t as vulnerable to shifts in one part of the energy sector, as its unique setup allows it to smooth out earnings during periods of price volatility. Recent operational improvements have strengthened Suncor’s outlook even further.

The company continues to generate strong cash flow, supporting a solid dividend and ongoing share buybacks. As of the time of writing, Suncor offers a quarterly dividend paying out a yield of 3.2%. The company has also provided annual upticks to that dividend for years and actively engages in share buybacks.

For investors seeking a balanced energy holding with defensive characteristics, Suncor remains a compelling option heading into 2026.

The infrastructure backbone that benefits from volume, not price

Enbridge (TSX:ENB) completes the list of energy stocks for investors to consider. The infrastructure behemoth plays a critical role in transporting North America’s energy. As a pipeline and utility operator, Enbridge generates stable, regulated cash flows that are less sensitive to commodity prices. Instead, the company benefits from the sheer volume of oil and natural gas moving through its network.

That stable, recurring revenue stream also allows Enbridge to invest in growth and pay out a handsome dividend. As of the time of writing, Enbridge offers a yield of 5.5%, making it one of the better-paying options on the market.

Prospective investors should also note that Enbridge has provided investors with generous annual upticks to that dividend for three consecutive decades without fail.

This defensive profile, combined with an attractive dividend, makes Enbridge a valuable complement to traditional producers. As energy demand remains steady and infrastructure needs to grow, Enbridge’s diversified asset base positions it well for the year ahead.

Invest in energy stocks in 2026

Canadian Natural Resources, Suncor, and Enbridge offer investors exposure to the entire energy chain. All three offer defensive appeal, strong growth potential and recurring, growing dividends.

This combination gives investors a diversified approach to the energy sector that caters to both growth and income-seeking investors.

The post Energy Stocks Could Be Canada’s Secret Weapon in 2026 appeared first on The Motley Fool Canada.

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* Returns as of February 17th, 2026

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• Worried About a Bear Market in 2026? 3 Stocks for Peace of Mind

Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy.