Zoncor
Suncor is trading near $63 per share at the time of writing, up from $45 in April, and has more than tripled from its 2020 lows.
Investors punished the stock during the pandemic after Suncor surprised the market with a big dividend cut in the early weeks of the crash. The board eventually reversed the cuts and Suncor has since raised the payout above previous levels, but it took some time to convince investors to return to the shares.
Management has done a good job reducing costs, improving efficiency and delivering solid production growth over the past two years. Suncor delivered production of 870,000 barrels per day (bbls/d) in the third quarter (Q3) of 2025, compared to 829,000 bbls/d in the same quarter last year.
The refinery saw throughput reach a record 492,000 bbls/d. Suncor’s refineries convert crude oil into gasoline, jet fuel and other products.
On the retail side, Suncor reported record refined product sales of 647,000 bbls/d in the quarter.
Suncor recently increased its dividend by 5%. Investors who buy SU shares at the current share price can get a dividend yield of 3.8%.
Suncor benefits from its integrated corporate structure. When oil prices fall, the refining and retail divisions tend to do well. This helps to compensate for the margin pressure on production resources. The business model historically made Suncor the preferred choice in the Canadian energy space before running into operational problems.
Looking ahead, the slowdown in electric vehicle adoption could benefit the refining and retail divisions. Suncor operates Petro-Canada branded gas stations across Canada. At the same time, expanding oil pipeline capacity will enable Suncor to increase oil production and sales in the coming years.
Canadian natural resources
Canadian Natural Resources has increased its dividend annually for the past 25 years. This is an impressive track record in an industry that relies on commodity prices to determine margins. CNRL has a diversified asset base that includes oil sands, offshore oil, conventional heavy and light oil, natural gas and natural gas liquids production.
The company is the sole or majority owner of most of its operations. This increases risk, but also gives CNRL the flexibility to quickly move capital within the portfolio to take advantage of positive movements in oil and natural gas prices. CNRL is best known for its oil activities, but is also a major natural gas producer.
Demand for natural gas is expected to increase in the coming years as gas-fired power generation facilities are built to both replace coal-fired power plants and to supply electricity to new AI data centers. New liquefied natural gas (LNG) export facilities in British Columbia will allow CNRL and other producers to sell their product in higher-priced international markets.
CNRL continues to drive production growth through acquisitions and successful drilling programs. Adjusted profits rose in the first nine months of 2025 compared to last year, despite weaker energy prices.
Investors who buy CNQ stock at the current price can get a dividend yield of 4.9%.
Is one a better choice?
Investors who focus purely on passive income should make CNQ their first choice for the higher returns.
That said, Suncor has made good progress on its turnaround plan and should continue to attract investors who previously shunned the stock. The integrated business structure provides a more balanced revenue stream than pure-play producers.
At current prices, I would probably split a new investment between the two stocks.
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