It is so Canadian to enjoy a healthy dividend. Investing in oil and gas stocks is also as Canadian as needing to wear a toque in October or stopping at Timmie’s before heading off on a road trip. We have a resource-based economy and many investors have learned to embrace our dominant sectors. And of course if you buy a core index-based Canadian equity ETF, it will be dominated by financials, energy and other materials. When investing in the very cyclical oil and gas sector, you have to be prepared for a rocky ride, and you’ll have to be patient. It’s also possible you’ll get ‘lucky’ on the timing. In late 2020, I put Canadian oil and gas stocks back on the table. The returns have been fantastic, the index recently made a sneaky move to a new all-time high. Utilities and pipelines are also making the Canadian energy complex a rewarding space.
The Canadian energy sector
Canadian oil and gas stocks quietly moved to an under-the-radar new all-time high, including dividends.
The investment thesis for Canadian oil and gas stocks (that I put on the table in October of 2020) is playing out. The index (XEG-T) is up 410% from 2020. The oil sands companies invested heavily in their projects. They can now pump and print. They are ‘well-positioned’ for a lower price environment. U.S. shale producers are in decline.
I like the big diversified/integrated CNQ, IMO, and SU hat trick, plus Tourmaline TOU-T that ironically is more of a natural gas play. Many of our accounts hold those 4 stocks, I’ve continued to chip away at those holdings.
Be a toll-taker
Canadian pipeline companies are also ramping up for greater volumes of oil and gas. Why not also make money taking tolls on oil and gas delivery? In August of 2023 I suggested I liked the concentrated natural gas play for TC Energy TRP-T after the oil pipeline spin off. It has been on a nice run. I’ve help TC Energy (and Enbridge) forever .
The above Portfolio Visualizer chart runs to the end of October. TC is up 7% in November. Being in semi-retirement, and given my taste for defensive equities I have been adding generously to TC Energy over the last 2 months, in my RRSP account and in my wife’s accounts. While still working, my wife is in the retirement risk zone. We get defensive several years before the retirement start date.
Permian gas wave sparks the biggest pipeline build out since the shale boom.
Canada’s important sectors are working
Enbridge is also looking to make new all-time highs.
Net, net, the energy holdings are performing well. This is good news for Canadian investors and the Canadian indices. Materials XMA-T has been a big driver of Canadian stock out performance (vs the U.S.) in 2025. Contrary to what the President of the United States might proclaim, Canada has a lot of the ‘stuff’ that America needs (and the world needs).
RBC Capital Markets analyst Maurice Choy is pleasantly surprised by the earnings results from domestic regulated utilities. Why not complete the energy hat trick – oil and gas producers / pipelines / energy creation.
Canadian utilities
Be sure to check out – Playing defense with Canadian utility stocks and ETFs.
The following was offered (subscription required) by Scott Barlow in the Globe & Mail.
“Our view: The Q3/25 results represented another milestone in highlighting the Canadian regulated utilities’ earnings durability, with results that were broadly in line to stronger-than-expected relative to our estimates and consensus, and with the companies at least reaffirming their previously[1]communicated near-term growth outlooks. Notably, some of the utilities (including Fortis, Hydro One, and Brookfield Infrastructure) have communicated stronger growth trajectories that are underpinned by their respective abilities to capture many favourable secular themes related to the rising North American energy demand and the importance of grid resilience.
Durable, low-risk
We believe the sector’s durable and low-risk growth, coupled with sustainably rising dividends, should offer investors a reliable high-single digit to low double-digit total return over the long-term. Indeed, an area that warrants continued monitoring on a local level will be how the industry balances keeping bills affordable while ensuring a fair and timely return on and of capital. Stock-wise, we highlight our Outperform-rated utility stocks, which include AltaGas, Brookfield Infrastructure, and Emera”
Canadian utility stocks
The following is from Canadian utilities under the microscope, analysis by Stockcalc.
Fortis Inc. FTS-T was founded in 1885 and is headquartered in St. John’s. Fortis operates as an electric and gas utility company in Canada, the United States and the Caribbean, generating, transmitting and/or distributing electricity to customers in those regions. It has approximately 185,300 kilometres of electrical transmission and distribution lines, 59,100 km of natural gas lines and a total generation capacity of 4,243 megawatts.
On Nov. 4, it announced its third-quarter results, which included net earnings of $409-million, or 81 cents a common share, as well as its capital plan for 2026 to 2030 of $28.8-billion. It also increased the fourth-quarter common share dividend by 4.1 per cent and extended annual dividend growth guidance of 4 to 6 per cent through 2030.
Our models (from Stockcalc) are mixed on FTS, with the overall valuation slightly less than current price.
Brookfield Infrastructure Partners
Brookfield Infrastructure Partners LP BIP-UN-T engages in the utilities, transport, midstream and data businesses. The utilities segment operates approximately 2,900 km of electricity transmission lines, 3,900 km of natural gas pipelines, 8.4 million electricity and natural gas connections and 700,000 long-term contracted sub-metering services.
It operates in the United States, Canada, India, Britain, Brazil, Colombia, France, Australia, Germany and other locations internationally. The company was incorporated in 2007 and is based in Hamilton, Bermuda.
Our models are both above and below the current price, with our weighted average valuation 7.9 per cent higher than the current price.
Here are the favourite utilities stocks from Dan at Stocktrades.
South of the border utilities
If you’re looking south of the border Gordon Pape has a couple of good ideas IMHO. Of course, you can also use a utilities sector ETF.
The Southern Company (SO-N)
Background: Atlanta-based Southern Company was founded about a century ago. It supplies power to customers in Georgia, Alabama, Mississippi and Northern Florida. Its facilities range from fossil-fuel plants (mainly coal and natural gas) to clean energy and nuclear. Its four Vogtle reactors, the last of which recently came online, comprise the largest generator of clean energy in the U.S. and are expected to produce more than 30 million megawatt-hours of electricity each year. Southern was recently named by Newsweek’s World’s Most Trustworthy Companies list as the highest-ranked U.S. energy company.
Southern’s third-quarter operating revenues were US$7.8-billion, up from US$7.3-billion in the same period last year, an increase of 7.5 per cent. For the nine months ended Sept. 30, 2025, operating revenues were US$22.6-billion, compared with US$20.4-billion for the same period in 2024, an increase of 10.7 per cent.
Earnings on the rise
The company earned US$1.8-billion (US$1.60 per share) during the third quarter, compared with US$1.6-billion (US$1.43 per share) during the third quarter of 2024. For the nine months ended Sept. 30, Southern earned US$4.1-billion (US$3.76 per share), compared with US$3.9-billion (US$3.56 per share) for the same period in 2024.
Southern operates the Alvin W. Vogtle Electric Generating Plant, located near Waynesboro, Ga. It is one of the largest and most significant nuclear power facilities in the United States.
Vogtle originally began operation with Units 1 and 2 in the late 1980s, each generating around 1,100 megawatts of electricity. Together, they established Vogtle as a cornerstone of Georgia’s clean energy portfolio, providing reliable baseload power to millions of customers across the Southeast.
In 2009, construction began on Units 3 and 4, the first new commercial nuclear reactors built in the U.S. in more than three decades. Both units use the advanced Westinghouse AP1000 pressurized water reactor design, which features passive safety systems that can cool the reactor core without operator action or external power for extended periods.
After years of construction challenges, delays and cost overruns, Unit 3 began commercial operation in July, 2023, and Unit 4 followed in April, 2024. Together, they add more than 2,200 megawatts of carbon-free generation capacity, enough to power more than one million homes and businesses. That makes Vogtle the largest producer of clean nuclear energy in the U.S.
In late October, RBC Capital Markets resumed coverage of the stock, rating it Sector Perform with a price target of US$107.
Duke Energy Corporation (DUK-N)
Comments: Duke Energy DUK-N is based in Charlotte, N.C.The company’s electric utilities serve 8.6 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky and collectively own 55,100 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky.
The company is executing an ambitious energy transition, investing in major electric grid upgrades and cleaner generation, including natural gas, nuclear, renewables and energy storage.
Duke recently released strong third-quarter results. Operating revenue for the three months to Sept. 30 was US$8.5-billion, up from US$8.2-billion in the same quarter of 2024. Net income applicable to shareholders was US$1.4-billion (US$1.81 per diluted share), compared with US$1.3-billion (US$1.60 per share) a year ago.
For the first nine months of the fiscal year, operating revenue was US$24.3-billion, an increase of 5.7 per cent from US$23-billon in the same period in 2024. Net income was US$3.8-billion (US$4.81 per diluted share), compared with US$3.2-billion (US$4.16 a share) the year before.
The company narrowed its 2025 adjusted EPS guidance range to US$6.25 to US$6.35. Long-term adjusted EPS growth rate is expected to be 5 to 7 per cent through 2029.
RBC Capital Markets has a target price of US$143 for the stock.
Back to Dale …
Thanks to our rich natural resources, Canada has been harder to kill (economically) than the U.S. expected.
Going nuclear
In the energy space, and in my TFSA, I’m also investing in nuclear by way of HURA-T. I see this as an undeniable trend. We’ll need nuclear to meet the growing energy demand; it is reliable and emission-free. It is a clean source of energy. Small reactors are game changers in the electricity generating space.
It is a robust sector that has taken a hit during the recent risk-off period.
The defensive line
I like the idea of playing defense with utilities and pipelines (quasi-utilities in their own right). On the defensive line we also hold the (wonderful) Canadian consumer staples ETF XST-T. Here’s some ‘crazy stuff’ on the sector …
And south of the border our defensive stocks are holding up more than well vs the market, S&P 500 – IVV.
Yes, I consider defensive equities ‘a lot’. They’ll work in concert with cash and bonds and gold. Here’s our U.S. staples anchor …
Be sure to join Retirement Club for ideas on how to build retirement-ready portfolios at the appropriate risk levels. You’ll match those portfolios to the optimized cash flow plan.
Of course, you don’t have to build a stock portfolio. You can look to the wonderful, managed, global, all-in-one ETF portfolios – they’re called asset allocation ETFs.
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More Sunday Reads
At Findependence Hub they’re also taking a look at defensive ETFs.
At Booming Encore, why starting a business later in life might be the opportunity you’ve been waiting for. It’s important to design our life in retirement, and that can include creating the job of your dreams. With real-life experience I can assure you, it’s a wonderful idea.
From the Retirement Manifesto the gap between living and living well.
While life expectancy keeps rising, healthy life expectancy isn’t keeping up.
That gap, the years we live in poor health, has widened to an average of 10–12 years in most developed nations.
- In the US, it’s 12.4 years.
- Australia: 12.2 years.
- New Zealand: 11.8 years.
- UK: 11.3 years.
And while we often talk about adding years to life, we’ve done a poor job of adding life to those years.
At Retirement Club I recently shared a post on two longevity hot spots in Canada. They’re living longer and they’re living happier and healthy lives. There are no secrets to this success. It’s often a combination of a strong personal connections, a sense of purpose plus exercise and a healthy diet.
Here’s a personal finance roundup courtesy of GenYMoney.
The Loonie Doctor takes a look at Canadian Dividend ETFs.
And, the portfolio review from Dividend Hawk.
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Here’s Canada’s top-performing Robo Advisor, Justwealth. You can get advice, planning and low-fee ETF portfolios all at one shop. Canadians can have it all.
Consider Justwealth for RESP accounts. That is THE option in Canada with target date funds that adjust the risk level as the student approaches the College or University start date.
OUR SAVINGS ACCOUNTS
Make your cash work a lot harder at EQ Bank. RRSP and TFSA account rates are at 1.75%, other savings rates up to 3.0%. You’ll find some higher rates on GICs up to 3.60%. They also offer U.S. dollar accounts at 3.0%. We use EQ Bank, they have been awesome.
OUR CASHBACK CREDIT CARD
We make between $40 to $70 every month! And that’s on everyday spending. There are no fees with …
The Tangerine Cash Back Credit Card
For October we received $43.41 in cash from everyday spending. You can select 3 categories for 2.0% cash back. Remaining categories pay up at 0.50%.
That cash went into my TFSA account to help buy some CBIL-T, CHPS-T and HURA-T.
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I read an interesting article online recently about bitcoin mining.
Is it really necessary to supply huge amounts of cheap Canadian electricity (BC and Quebec), to Canadian based bitcoin mining operations and thus enrich people like Donald Trump and his sons’ private companies?
Donald Trump keeps saying he does not need anything from Canada. It seems some companies his private investments are involved in do.
On general principles, I think there are better uses for Canadian generated electricity, than bitcoin mining.
Made my energy plays a couple of weeks back. This will likely be the sector to beat for the next decade.
https://divistockchronicles.substack.com/p/a-non-registered-play-in-the-energy