The Canadian stock market has experienced significant growth in recent weeks following interest rate cuts announced by the Bank of Canada. The S&P/TSX Composite Index has reached new all-time highs, with a 12.3% increase in the last six months.
However, Canadian energy stocks are not performing as well as the broader market, with the S&P/TSX Capped Energy Index down by 1.1% in the same period. This presents an opportunity for investors to consider investments in the energy sector.
Several top energy stocks in the industry are currently attractive for investors seeking high yields and long-term capital gains. Two stocks worth considering for a self-directed portfolio in this sector are Suncor Energy and Canadian Natural Resources.
Suncor Energy Inc., headquartered in Calgary and with a market capitalization of $70.7 billion, specializes in producing synthetic crude oil from oil sands operations. The company’s integrated business model, which includes refineries and a fuel station network, makes it an appealing investment option.
Canadian Natural Resources Ltd., also based in Calgary with a market capitalization of $109.3 billion, is primarily an upstream energy company with the largest natural gas and oil reserves in Canada. The company offers earnings reliability through dividends, with a track record of increasing payouts at a compound annual growth rate of 21% for the last 24 years.
Both Suncor Energy and Canadian Natural Resources present solid investment opportunities in the energy sector, with potential for long-term growth and dividends. Consider these stocks for a well-rounded portfolio that can provide a combination of capital gains and income stability.
