Dividend Investors: 3 Canadian Energy Stocks Look Like Buys Right Now

Energy stocks never show up in polite “sleep well at night” lists, yet dividend investors have a reason to peek right now. Canada’s big caps soak up most attention, but the cash in energy often comes from different places, at different times. When prices cooperate, producers can fund dividends, buy back shares, and still invest in the next wells. The catch is real. Commodity cycles turn, headlines swing, and payouts can move. That is why stock selection matters more here than in most sectors. Which is why today, we’re looking at three strong options.

PXT

Parex Resources (TSX:PXT) feels like a stock investors miss because it lives outside the usual Canadian narrative. It produces oil and gas in Colombia, so it can behave differently than a producer tied to Alberta’s policy noise or Canadian pipeline constraints. Analysts also tend to talk about it as a valuation story, not a hype story, because the energy stock does not need sky-high prices to look attractive.

The dividend pulls you in, but the earnings need to keep up. Parex has a current dividend yield near 8.9% at writing. In its Q3 2025 update, Parex reported funds flow from operations of $105 million, and it declared a $0.385 quarterly dividend for Q4 2025. That is the basic appeal: cash flow first, payout second. The risk sits in the same place as the opportunity. Colombia adds country risk, and a bad price tape can pressure free cash flow, which is why investors should treat the yield as variable, not guaranteed.

TOU

Tourmaline Oil (TSX:TOU) gets ignored for a different reason. Some investors see natural gas and assume wild pricing and unreliable income. Yet Tourmaline calls itself Canada’s largest natural gas producer, and it has scale in the Western Canadian Sedimentary Basin. Analysts tend to respect that scale and see room for higher total returns when gas markets tighten.

For dividend investors, Tourmaline’s structure matters as much as its production. It declared a $0.50 quarterly dividend payable December 31, 2025, and it also declared a $0.25 special dividend paid November 25, 2025. That approach can feel more honest than promising a huge fixed yield. You get a core payout, and you also get upside when cash piles up. The risk is simple, of course. Warm winters, weak prices, or transport constraints can shrink specials quickly, so you want patience and a plan to reinvest when gas sentiment dips.

ARX

Finally, ARC Resources (TSX:ARX) may be the cleanest pick for a dividend investor who wants energy exposure without betting on a single product. It produces natural gas, condensate, NGLs, and crude across Alberta and British Columbia, with a heavy focus on the Montney. Analysts often highlight that mix because it can smooth cash flow when one commodity lags.

ARC’s recent quarter also backs up the income case. In Q3 2025, it reported funds from operations of $779 million and approved an 11% dividend increase to $0.21 quarterly, or $0.84 annualized. The longer runway is LNG. It now offers a long-term agreement tied to Cedar LNG, with ExxonMobil set to buy ARC’s LNG offtake, which can add demand visibility over time. The risk is that LNG timelines slip, or prices soften before that payoff shows up, so you still want a balance sheet that can handle lower prices without cutting the dividend.

Bottom line

Energy stocks can absolutely disappoint, so treat these as businesses first and income streams second. Parex offers a high payout and diversification, Tourmaline offers scale and flexible returns, and ARC offers a balanced platform with an LNG catalyst. Yet right now, all three also offer one thing: dividends. Here’s what $7,000 in each could bring in.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDEND TOTAL ANNUALPAYOUTFREQUENCYTOTAL INVESTMENTPXT$17.57398$1.54$612.92Quarterly$6,992.86TOU$60.60115$2.00$230.00Quarterly$6,969.00ARX$25.11278$0.84$233.52Quarterly$6,980.58

In short, if you stay selective and keep your position sizes sane, you can get paid while the market watches the same big caps do their usual thing. Keep a watchlist, read earnings, and reinvest dividends with discipline.

The post Dividend Investors: 3 Canadian Energy Stocks Look Like Buys Right Now appeared first on The Motley Fool Canada.

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More reading

• The Absolute Best Canadian Stocks to Buy and Hold Forever in a TFSA
• TFSA Contribution Room Strategies for Canadian Investors in 2026
• TSX Today: What to Watch for in Stocks on Wednesday, December 10
• Dividend Investors: Premier Canadian Energy Stocks to Buy in December
• 2 Dividend Stocks to Double Up on Right Now

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Parex Resources and Tourmaline Oil. The Motley Fool has a disclosure policy.