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2 Top Canadian Energy Stocks for Lifetime Dividends

Creating sustained revenue via Canadian energy stocks goes beyond merely selecting several firms and waiting for success. It involves identifying dependable, progressive enterprises capable of increasing profits, compensating investors, and adjusting to a changing landscape. Two examples that meet these criteria include:

Cameco

(

TSX:CCO

) and

Capital Power

(

TSX:CPX

These stocks provide varied perspectives on energy, with one focusing on the nuclear aspect and the other on alternative sources.

diversified

Generation, yet each has the potential to offer a consistent lifelong income.

Cameco

Cameco stands among the top global producers of uranium, which serves as the primary fuel for nuclear power plants. This energy-focused company experienced prolonged periods of surplus in the uranium market; however, it currently finds itself on steadier footing. With many nations reconsidering nuclear energy as a cleaner and more reliable option compared to fossil fuels, demand is increasing. This transition has positioned Cameco favourably. According to their latest quarterly report, Cameco’s revenues reached $634 million, down slightly from $687 million during the equivalent period the previous year. Before-tax net earnings amounted to $70 million, bolstered by robust operations and favourable market conditions.

Moreover, Cameco’s production levels are increasing once more following several years of decreased output. By employing a long-term contracting approach, the company maintains favorable prices that surpass current market rates. In the first quarter of 2025, their average selling price for uranium stood at US$66.44 per pound, contrasting with a spot price of US$58.15. This pricing tactic ensures consistent cash flows and aids in navigating through temporary fluctuations in the market.

Cameco holds a 49% share in Westinghouse, a prominent supplier of nuclear technology solutions. This investment has proven beneficial as evidenced by Cameco’s financials for 2024. The company announced an adjusted EBITDA exceeding $1.5 billion, much of which was attributed to Westinghouse’s performance. Coupled with a strong financial position and approximately $3 billion in available funds, Cameco appears ready to sustain dividends and invest further in expanding operations over the long term.

Capital Power

At the opposite end of the energy continuum lies Capital Power, a utility-style firm primarily involved in power production throughout North America. This enterprise encompasses an array of assets including natural gas, wind, solar, and waste-heat installations, generating revenue through extended contract agreements that ensure consistent financial returns. During the initial quarter of 2025,

earnings

Capital Power announced a net income of $150 million along with an adjusted EBITDA of $367 million. The company’s funds from operations amounted to $218 million, which aided in bolstering its expanding dividend payments.

Capital Power is committed to expanding its asset base. At the beginning of 2025, they finalized an agreement to purchase two natural gas stations located in the United States within the PJM region, boosting their total capacity by 2.2 gigawatts. These installations offer dispatchable electricity generation, ensuring a steady power output during times when wind or solar sources fall short. Given the increasing dependence on renewable energies across the grid, such facilities will continue to be crucial assets.

Over the past ten years, Capital Power has consistently increased its dividend each year. Most recently, as of the end of Q2 2025, they distributed $0.6519 per share. This track record positions it well for those seeking steady income from their investments. The company plans to boost its dividend at an annual rate of 5-6%, all while maintaining a healthy payout ratio.

Bottom line

Cameco and Capital Power both profit from enduring industry shifts. Cameco’s fortunes are closely linked to the worldwide shift towards cleaner energy sources, especially since nuclear power is experiencing resurgence in regions like Asia and Europe. As governments seek out emission-free steady electrical supply, nuclear emerges as an ideal solution. The company stands out due to its advantageous contracts, strong pricing capabilities, and strategic alliance with Westinghouse which provides comprehensive coverage across the sector.

In contrast, Capital Power provides a conventional utility approach with an innovative angle. Unlike a regulated utility, it enjoys greater freedom to explore expansion prospects, yet still benefits from stable income through extended power purchase agreements. With its expanding asset base and emphasis on rewarding shareholders, the company is well-suited for long-term investors seeking reliability alongside potential for increased investment value.

Long-term earnings aren’t solely dependent on securing the highest returns; they also require investments in businesses with robust competitive advantages—companies capable of growth, flexibility, and rewarding their investors amid shifting market conditions. Both Cameco and Capital Power offer distinct qualities, yet each possesses the necessary attributes to ensure such durability. Keeping these stocks over an extended period might prove to be a prudent strategy for establishing your financial base for future decades.

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2 Canadian Energy Shares to Purchase and Keep for Lifetime Earnings

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Fool contributor

Amy Legate-Wolfe

has no stake in any of the aforementioned stocks. The Motley Fool endorses Cameco and Capital Power. The Motley Fool has a

disclosure policy

.