Amid the ongoing Israel–Iran conflict, Iran has announced plans to block the Strait of Hormuz, a critical shipping route that carries roughly 20% of the world’s oil and natural gas supply. This potential disruption has pushed crude oil and natural gas prices higher, heightening concerns across global markets.
Rising energy prices could fuel inflationary pressures, prompting central banks to delay or slow the pace of interest rate cuts. As a result, investor sentiment has weakened, leading to increased volatility in global equity markets.
In this uncertain environment, investors may want to focus on high-quality dividend stocks to help strengthen their portfolios. Companies with consistent cash flow and reliable payouts tend to be more resilient during periods of market turbulence and also provide steady passive income.
Against this backdrop, here are two Canadian energy stocks that investors can consider buying today despite the volatile outlook.
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Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is a diversified oil and natural gas producer with operations across Western Canada, the North Sea, and Offshore Africa. The company owns a large portfolio of low-risk, high-value reserves that require relatively modest capital reinvestment. Combined with its efficient operations and disciplined cost management, the company has lowered its breakeven levels, enabling it to generate strong profitability and robust free cash flow across economic cycles.
Backed by healthy cash flow, CNQ has increased its dividend for 25 consecutive years, with an impressive annualized growth rate of 21%. Its current quarterly dividend of $0.5875 per share yields 3.89%, making it attractive to income-focused investors.
The Calgary-based energy producer also maintains a solid balance sheet, with a debt-to-adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio of 0.9 and liquidity of $4.3 billion. This financial strength provides flexibility to manage volatility and pursue growth opportunities.
Despite the global transition toward cleaner energy sources, oil and natural gas are expected to remain key components of the global energy mix for years to come. In the near term, elevated crude and natural gas prices—driven by geopolitical tensions and supply disruptions—could further support CNQ’s earnings and cash flows.
Importantly, CNQ holds the second-largest proven reserve base among its global peers, with over five billion barrels of oil equivalent (BOE) and a proven reserve life index of 32 years. A significant portion of these reserves consists of high-value petroleum products. In addition, the company plans to invest $6.4 billion in capital expenditures this year to strengthen its production capabilities.
Considering its resilient asset base, strong balance sheet, disciplined capital allocation, and consistent dividend growth, CNQ appears well-positioned to continue rewarding shareholders with attractive income and long-term value creation.
Enbridge
Enbridge (TSX:ENB) is a leading North American energy infrastructure company that transports crude oil and natural gas, operates three U.S.-based natural gas utilities, and maintains a growing presence in renewable energy. Approximately 98% of its adjusted EBITDA is generated from long-term take-or-pay contracts or regulated assets, with about 80% of that cash flow indexed to inflation. This structure reduces exposure to commodity price volatility and economic cycles, resulting in stable and predictable cash flows.
Supported by this resilient business model, Enbridge has paid dividends for more than 70 years and increased its payout for 31 consecutive years. The stock currently offers an attractive forward yield of 5.22%, making it appealing for income-focused investors.
Looking ahead, Enbridge has identified $50 billion in secured growth opportunities through the end of the decade and plans to invest roughly $10 billion annually to advance these projects. As these investments come online, management expects adjusted EBITDA, adjusted earnings per share, and distributable cash flow per share to grow at a mid-single-digit rate over the next several years.
With liquidity of $10.8 billion at the end of last year and a visible growth pipeline, Enbridge appears well-positioned to sustain steady earnings expansion and continued dividend growth, making it a compelling energy stock to consider in today’s market.