Fossil fuels such as coal, oil, and natural gas have been widely used to create energy since the industrial revolution. Canadian company Suncor Energy Inc. (TSX:SU)(NYSE:SU) has helped supply oil for our energy demands since the company was founded in 1917. Suncor Energy specializes in the production of crude oil from bitumen extracted from the tar sands in northern Alberta.

Canada has a large supply of fossil fuels as it is a resource-rich country, but fossil fuels are a limited resource. With a limited supply and an increasing demand for energy with growing cities and populations, what is the future of fossil fuels?

It is becoming clear that we need to address the environmental impacts of using fossil fuels for energy. People and governments are concerned about the emissions created from the combustion fuels to create energy. Fossil fuels are burned to create power; during the combustion, fossil fuels emit greenhouse gases such as carbon dioxide (CO2). And with the historic Paris Climate Agreement—an agreement dealing with greenhouse gas emissions mitigation, adaptation, and finance—countries are taking steps to reduce emissions.

Countries have been reducing their emissions by increasing the amount renewable energy being generated. Innergex Renewable Energy Inc. (TSX:INE) has been developing—as the owner and operator—renewable power-generating facilities for almost 30 years. Its focus is on hydroelectric, wind power, and solar projects.

There is no combustion to create renewable energy, so it does not produce harmful emissions, unlike fossil fuels. However, renewable energy in the past was more expensive than fossil fuels. Now, according to the World Economic Forum, solar and wind is either the same price or cheaper than fossil fuels in more than 30 countries.

Renewable energy companies continue to grow as technology improves efficiency and as governments push toward cleaner energy production. This has brought the cost to the consumer down, making it more economically viable than in the past. Fossil fuels are still the dominant energy source, but this could change.

There are huge opportunities for companies such as Boralex Inc. (TSX:BLX), which is innovating and bringing down the price for consumers. The company has increased its market share with the increasing opportunity for renewable energy projects in Canada and abroad. Boralex owns and operates an installed capacity of almost 500 MW in Canada, the northeastern United States, and France. The company also sees increased opportunities in the future.

No one knows exactly what the future for fossil fuels holds, but it is clear that renewable energy is gaining momentum and could exceed fossil fuels for the world’s energy needs. This is because governments are reducing emissions, and renewable energy technology is now efficient enough to complete with the price of fossil fuels.

The post What Is the Future of Fossil Fuels? appeared first on The Motley Fool Canada.

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Canadian banks have been stable even during times of recession in the United States and the E.U. They are known for having great dividend returns, making them core investments. Although the banks have proven stability during difficult times and great dividends, are they worth investing in right now?

Let’s look at three of Canada’s largest banks by market cap to see what analysts are recommending and if they are worth your money.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS)—the smallest of the three banks—is not only highly profitable with a net profit margin of 30%, but its stock price has also outperformed the S&P TSX by 13.88% during the last year. Bank of Nova Scotia has proven itself to be highly effective at turning revenue into profit and increasing its revenue year after year—two things investors enjoy seeing in a company, in profit, and in growth.

The analyst consensus forecast advises that Bank of Nova Scotia will outperform the market. One year ago, analysts changed their advice to investors, moving Bank of Nova Scotia from a hold position to a buy. Bank of Nova Scotia has the momentum and the right market conditions to make it an easy investment decision.

Toronto-Dominion Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD)—the second-largest bank in Canada—has consistently raised its dividends and continues to expand its market in the United States. Canadian financial institutions are considered some of the safest in the world. TD moved into the United States during the global recession and has seen healthy growth in the U.S. during the last decade. The bank has increased its dividend 8% over last year to $2.40.

Despite the strength of this Canadian bank, the consensus forecast among 17 polled analysts is to hold the position in the company. The previous consensus forecasted that TD would outperform the market.

Royal Bank of Canada

Royal Bank of Canada (TSX:RY)(NYSE:RY)—the largest bank—is highly diversified, providing customers with personal and commercial banking, wealth management services, insurance, investor services and capital markets products, and services on a global basis in Canada, the United States, and 40 other countries.

Like TD Bank, the consensus forecast among 19 polled analysts covering Royal Bank of Canada is that investors should hold their positions in the company. The previous consensus forecast advised that Royal Bank of Canada would outperform the market.

Comparison of fundaments:

Canadian banks continue to be great long-term investments for dividends and stability even in economic downturns. However, based on the current consensus among analyst, Bank of Nova Scotia is the best Canadian bank to invest in right now. Both TD Bank and Royal Bank of Canada  are great core stocks, but analysts are currently advising investors to hold their positions in these companies.

The post Are Canadian Banks Still a Good Buy? appeared first on The Motley Fool Canada.

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