The Canadian energy sector has shown steady growth since the post-pandemic period, with the energy index rising by 18% since the beginning of the year. However, some investors believe that the bullish market phase may be coming to an end due to increasing uncertainty in the industry.
Despite these concerns, there are two energy companies that investors can consider in August 2024. One of these companies is an upstream energy company, Canadian Natural Resources, which is one of the largest oil and gas producers in Canada and North America. With significant reserves and low-cost production, Canadian Natural Resources is well-positioned to remain financially viable even in uncertain market conditions.
Another company to consider is TC Energy, a midstream energy company that focuses on energy infrastructure, particularly natural gas transportation. TC Energy’s revenues are tied to long-term contracts, offering more stability compared to companies focused on extraction and distribution. With a solid dividend history and a focus on natural gas transportation, TC Energy may offer long-term potential for investors.
Investors can consider both companies for their dividends, as they have a history of sustaining and increasing payouts. Additionally, any potential capital appreciation on top of dividends can be seen as a bonus for investors.
