The energy sector in Canada has gone through its powerful post-pandemic growth phase and has been fluctuating near its peak for almost two years. The current year has (so far) been quite decent for the sector, and the energy index has actually risen 18% since the beginning of the year.

But to many investors, it's clear as day that the bull market phase is over, and it doesn't require a correction to mark its official ending.

Even if you are on the other side of this argument and believe that the energy sector still has growth to offer, it's impossible to deny that there is a lot of uncertainty in the industry. But this doesn't mean there is nothing in the industry to buy right now. There are at least two energy companies you can buy into confidently in August 2024.

An upstream energy company

Canadian Natural Resources (TSX:CNQ) is a senior and one of the largest oil and gas producers in Canada and North America. It has the second-largest proved reserves among global energy giants, mostly oil shales for liquid production.

The company also holds the distinction of being the largest crude oil producer in Canada. Another major strength of the business is lower-priced production per barrel compared to its Canadian peers.

All of this essentially boils down to the fact that unless there is a significant drop in global demand, Canadian Natural Resources is well-positioned to remain financially viable, even profitable, thanks to its massive reserves and low-cost production.

The stock experienced exceptional growth in the bullish, post-pandemic market, and despite already being a heavyweight, the stock rose by about 146% from its pre-pandemic levels, reaching a market valuation of about $104 billion, making it one of the most valuable energy stocks in the country.

However, considering how far this growth might continue is a big question mark, and the stable dividends, a 4.3% yield, and a fair valuation are reasons enough to buy this stock confidently.

A midstream energy company

Midstream energy giants like TC Energy (TSX:TRP) that focus on energy infrastructure, more accurately pipelines used to move natural gas and oil across the continent, have one significant advantage over upstream or downstream energy companies.

Their revenues are tied to contracts that are often long term in nature, so they are not as affected by price ups and downs as the revenues of energy companies focused on extraction and distribution.

That doesn't make it inherently safe, but relatively safer compared to the rest of the sector. TC Energy has another advantage, even over other pipeline companies and it's the primary focus of its business — natural gas transportation.

It's the cleaner of the two fossil fuels and, thanks to its use cases, may experience a slower decline in demand compared to oil. This endorses the long-term potential of the company's dividends along with its solid dividend history and makes its 6.3% yield even more attractive.

Foolish takeaway

You can buy both of these companies for their dividends. They both have solid dividend histories and financial strength to sustain and increase their payouts and are offering decent yields. Any capital-appreciation potential you gain in addition to their dividends can be considered a bonus.