Canadian oil stocks have proven over the past decade that they can navigate downturns in commodity prices.

Canadian oil stocks also tend to pay higher dividends than many U.S.-based oil stocks, making them potentially more appealing for income investors.

Valuations have also remained quite low recently, boosting their respective total return profiles as a result.

These 3 Canadian oil stocks have high dividend yields and appear to be undervalued.

Enbridge Inc. (ENB)

Enbridge is an oil & gas company that operates the following segments: Liquids Pipelines, Gas Distributions, Energy Services, Gas Transmission & Midstream, and Green Power & Transmission. Enbridge bought Spectra Energy for $28 billion in 2016 and has become one of the largest midstream companies in North America.

Enbridge was founded in 1949 and is headquartered in Calgary, Canada.

During fiscal 2024, Enbridge grew its adjusted EBITDA by 13% year over year, to CAD$18.6 billion, up from CAD$16.5 billion during the previous year’s quarter. For the year, Enbridge was able to generate distributable cash flows of CAD$12.0 billion, which equates to US$8.3 billion, or US$3.84 on a per-share basis.

Enbridge put billions worth of projects into service over the last couple of years, and more growth projects are under construction, which includes new energy assets such as wind farms as well as hydrocarbon assets such as pipelines. According to management, growth will persist going forward, as Enbridge targets long-term cash flow per share growth of 5%-7%.

Enbridge is one of the largest pipeline operators in North America. Its vast asset footprint serves as a tremendous competitive advantage, as it would take tens of billions of dollars of investments from new market entrants if they wanted to be able to replace Enbridge’s assets.

ENB has increased its dividend for 30 consecutive years and currently yields 5.8%.

Suncor Energy (SU)

Suncor Energy is one of the largest integrated energy producers in Canada. The company is involved in all the aspects of the energy value chain, operating in three segments: Exploration & Production, Refining & Marketing, and Other.

Suncor is headquartered in Calgary, Alberta, Canada and is cross listed on both the Toronto Stock Exchange and the New York Stock Exchange. Suncor reports financial results in Canadian dollars. However, the figures listed in this research report are in USD.

In early May, Suncor reported (5/6/25) results for the first quarter of 2025. It posted record first-quarter production and refining volumes. It grew its production 2% over last year’s quarter and posted refinery utilization of 104%. However, due to lower prices of oil and gas, adjusted earnings-per-share dipped -7%.

Suncor reiterated its guidance for essentially flat production this year and a decrease in refinery utilization from 100% to 93%-97% due to maintenance. Given also the recent decline in oil prices, we have lowered our forecast for earnings-per-share in 2025 from $3.20 to $3.00.

SU stock currently yields 4.5%.

Canadian Natural Resources (CNQ)

Canadian Natural Resources is an energy company that operates in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas liquids (NGLs), and natural gas. It is headquartered in Calgary, Alberta.

In early May, Canadian Natural Resources reported (5/8/25) financial results for the first quarter of fiscal 2025. The company grew its production 19% over the prior year’s quarter, to a new all-time high. In addition, the price of natural gas significantly increased. As a result, the earnings-per-share of Canadian Natural Resources surged 70%.

Canadian Natural Resources has raised its quarterly dividend by 4% this year and thus it has grown its dividend (in CAD) for 26 consecutive years, at a compound annual growth rate of 20%.

Canadian Natural Resources grew its proved reserves by 9% in 2024 which has enhanced its reserve life index to 33 years. As this figure is triple the average life of reserves of its peers (~11 years), it is impressive and certainly bodes well for the production growth prospects of the company.

The competitive advantage of Canadian Natural Resources is the high quality of its assets, which have a long life, low decline rates and low production costs.

CNQ has increased its dividend for 26 consecutive years and the stock currently yields 5.1%.

Disclosure: No positions in any stocks mentioned

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Bob Ciura has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul.