Top 5 Energy Stocks To Watch in 2021

Melisa R. H. Posted On January 6, 2021

Energy saw a recovery later in the year as demand outpaced supply. The sector has been hit by negative sentiments towards traditional energy and perceived non-ESG friendliness. The Biden presidency is a headwind in some regards, but existing energy infrastructure will become more valuable. There has been consolidation in the sector. Many companies in the sector offer high yield and stable dividends.

Here are the top 5 energy stocks to watch in 2021:

1.-MEG Energy Corp (MEG-T)

MEG Energy Corp (MEG-T) — Stockchase

How could you not like MEG? Massively de-leveraging. Will be going to the balance sheet. Next year, should return a lot of capital. 24% free cashflow at $70 oil. Could buy back all stock in a year. Inevitably will get scooped up. Expects for this to do very well. A 6x multiple would be realistic…

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2.-Tourmaline Oil Corp (TOU-T)

Tourmaline Oil Corp (TOU-T) — Stockchase

10.5B market cap. While it has oil, a lot of the upside for the stock comes from gas. Sale of their small holding of Topaz has also helped them. Could see a special dividend from the proceeds. A shareholder friendly company that bumps up the dividend over time. Low finding and drilling costs.

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3.-Enbridge (ENB-T)

Enbridge (ENB-T) — Stockchase

Owns it for the safe 7% dividend. In energy, she owns only the pipelines. ENB can keep raising the dividend. ENB has long contracts so there's a safe income stream.

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4.-Canadian Natural Rsrcs (CNQ-T)

Canadian Natural Rsrcs (CNQ-T) — Stockchase

CNQ vs. Suncor The energy sector looks good. Today's news says that we could see oil prices topping $100 in 2022, but he thinks $80 is a more realistic target. Growing demand for oil should continue into 2022. CNQ could crack the summer's resistance level. Stick with the large-cap oil names. CNQ vs. Suncor? Own…

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5.-Suncor Energy Inc (SU-T)