3 Top Energy Stocks for Long-Term Passive Income

Canada's energy sector offers numerous dividend-paying companies, providing investors with opportunities for long-term passive income. With many of the largest publicly traded companies on the TSX operating within the energy industry, investing in TSX energy stocks can be particularly enticing for those seeking reliable dividends over the years.


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Tourmaline Oil (TSX: TOU)

Tourmaline Oil stands out as Canada's largest natural gas producer, holding a significant edge in the market. Additionally, it ranks third in terms of liquid production, emphasizing its robust position within the energy landscape. With a substantial drilling inventory estimated to last approximately 75 years, Tourmaline Oil is poised to maintain its status as a dominant energy producer in Canada for decades to come.


Beyond its impressive production scale, Tourmaline's strategic focus on natural gas production is noteworthy. With over three-quarters of its total energy production attributed to natural gas, the company benefits from the cleaner nature of this fossil fuel. This strategic advantage positions Tourmaline Oil favorably amidst the ongoing green shift impacting energy sectors globally.

Examining Tourmaline Oil as a Dividend Stock

When evaluating Tourmaline Oil as a dividend investment, two key aspects come to light. Firstly, its relatively low yield of 1.9% may raise eyebrows among investors. However, this can be attributed to the company's robust growth trajectory following the pandemic, which has driven five-year returns to an impressive 395%. Secondly, while the company's basic dividends have experienced significant growth, the fluctuating nature of special dividends adds an element of inconsistency to its payout structure.

Canadian Natural Resources (TSX: CNQ)

As the second-largest natural gas producer in Canada and one of the largest independent upstream companies in the country, Canadian Natural Resources commands attention. Boasting an extensive portfolio of assets and the largest oil and natural gas reserves in Canada, the company enjoys a proven life index of over three decades for its reserves. Notably, more than half of its total reserves comprise highly desirable energy commodities such as light crude and natural gas liquids (NGLs).


Canadian Natural Resources stands out for its remarkable consistency, particularly during market downturns and sector-wide challenges. Few energy giants in Canada have demonstrated such resilience, with the company weathering market crashes and enjoying substantial growth in recent years. Despite a current yield of 2.1%, reflecting a slump due to post-pandemic growth, Canadian Natural Resources boasts an impressive track record of 22 consecutive years of dividend growth and a stable payout ratio history, solidifying its position as a top long-term dividend pick in the energy sector.

Adding to the Mix: Suncor Energy Inc. (TSX: SU)

Suncor Energy Inc. joins the ranks of esteemed Canadian energy companies, contributing to the nation's energy landscape with its diverse portfolio and strategic initiatives. As a leading integrated energy company, Suncor Energy operates across the entire energy value chain, encompassing exploration, production, refining, and marketing activities.


The Canadian energy sector offers a wealth of opportunities for investors seeking stable dividend income over the long term. With companies like Tourmaline Oil, Canadian Natural Resources, and Suncor Energy Inc. leading the charge, investors can capitalize on the sector's resilience, robust fundamentals, and potential for sustained growth.
Location: Canada

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