Motley Fool Premium
  1. Category
    2. /
  2. Investing
    3. /
  3. Energy Stocks
    4. /

Energy Stocks

What are energy stocks? 

Energy stocks represent partial ownership in companies that supply electricity and fuel for the global economy. The energy sector in Canada is vast, comprising a large portion of the TSX. Energy stocks include: 

  • Liquefied natural gas companies
  • Natural gas companies 
  • Oil companies 

(Renewable energy stocks are part of the TSX’s utilities sector.)

How can you pick energy stocks?

1. Look for companies with a promising future 

It’s no surprise that the energy sector is under intense scrutiny. With climate change at the front of many people’s minds (from governments to investors), energy companies, old and new, are constantly adapting to a new world. Many people want cleaner energy. And it’s the energy sector’s challenge to make clean energy available — and profitable, too. 

For that reason, investors will do well to look for innovative companies that are actively solving contemporary energy problems. Though we’re not suggesting investors ignore bigger companies in oil or natural gas, we are suggesting you keep an eye on the future as you’re picking your energy stocks. 

Given the direction the world is going, ask yourself: who will be around in 20, 30, or even 40 years? That’s one of the biggest questions you can answer as an energy stock investor. 

2. Analyze an energy company’s financial standing

The future of an energy company depends in part on how it’s handling its finances now. Given that prices within the energy sector are extremely volatile — just look at how the price of gas fluctuates — you want to be sure an energy company has the financial strength to withstand a recession. Some factors you may want to analyze include: 

  • Strong balance sheet: the company should have lots of liquid cash on hand, as well as a capacity to borrow (if needed). It should also have low amounts of debt and a high investment grade. 
  • Low production costs: the company shouldn’t be spending the majority of its revenue on producing energy. The company should have a stable revenue with minimal exposure to price fluctuations. 
  • Conservative dividend payout ratio: though everyone likes to make money on dividends, if a company dishes too much out, it could end up cutting or reducing its dividend program during hard times. 

3. Check here for our writer’s picks

Our writers are constantly analyzing the energy sector, as they look for Canadian energy stocks that are growing, as well as those that are under- or over- valued. Keep checking back here to see which stocks they recommend — and which they don’t. 

[KevelPitch/]

In addition, you should read up on our Renewable Energy Stocks list.

Check back here for the most up to date information about energy stocks.

Recent Energy Stocks News

Oil industry worker works in oilfield
Energy Stocks

The Canadian Energy Stock I’m Buying Now: It’s a Steal

| Aditya Raghunath

Tourmaline Oil just posted record output and strong free cash flow while its share price lags. Here is why I…

Read more »

oil pump jack under night sky
Energy Stocks

I’m Betting My Future on This Canadian Dividend Giant

| Amy Legate-Wolfe

North America’s coming natural-gas surge could turn one Canadian pipeline giant into a long-lived retirement income machine.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Energy Stocks

The Only Stock You Need to Buy and Hold for Retirement

| Amy Legate-Wolfe

One Canadian utility has raised its dividend every year since 1973, making it a rare retirement income anchor.

Read more »

Oil industry worker works in oilfield
Energy Stocks

How Much Does a Typical 45-Year-Old Alberta Resident Have Saved in a TFSA?

| Joey Frenette

Canadian Natural Resources (TSX:CNQ) and another energy stock worth stashing in a TFSA.

Read more »

oil pumps at sunset
Energy Stocks

A 6.6% Dividend Stock to Buy and Hold While Rates Pause

| Amy Legate-Wolfe

Collect a 6.6% monthly dividend during the Bank of Canada’s rate pause with a royalty-based energy stock that gets paid…

Read more »

man in bowtie poses with abacus
Dividend Stocks

How Much a Typical 45-Year-Old Has in TFSA and RRSP Accounts

| Demetris Afxentiou

See how much a typical 45-year-old has in TFSA and RRSP accounts and how XIC, ZSP, and Enbridge could help…

Read more »

trading chart of brent crude oil prices
Energy Stocks

3 Canadian Energy Stocks to Watch as Oil Headlines Heat Up

| Puja Tayal

Uncover the potential of energy stocks and learn about investment strategies in the current energy sector upcycle.

Read more »

Hourglass projecting a dollar sign as shadow
Energy Stocks

A 6.5% Dividend Stock That Pays Cash Monthly

| Jitendra Parashar

This monthly dividend stock offers a dividend yield of over 6%, regular cash payouts, and the potential for strong long-term…

Read more »

financial chart graphs and oil pumps on a field
Energy Stocks

3 Canadian Energy Stocks to Watch as Oil Headlines Heat Up

| Puja Tayal

Explore the latest trends in energy as oil prices surge to US$79 per barrel amidst ongoing United States-Iran negotiations.

Read more »

a person watches a downward arrow crash through the floor
Energy Stocks

A Canadian Dividend Pick Down 13%: A Forever Hold

| Adam Othman

With the possibility of a strong rebound, this battered and bruised TSX energy stock might be an excellent pick to…

Read more »

engineer at wind farm
Energy Stocks

How Many Canadians Actually Hit That $109,000 TFSA Milestone?

| Adam Othman

By building a portfolio of high-quality TSX stocks, you can set yourself up to cover the gap between your actual…

Read more »

electrical cord plugs into wall socket for more energy
Dividend Stocks

1 Dividend Stock That’s Been Quietly but Constantly Raising Its Dividend

| Andrew Button

Fortis (TSX:FTS) has been quietly raising its dividend for 52 years.

Read more »

senior man and woman stretch their legs on yoga mats outside
Energy Stocks

2 Dividend Stocks to Buy for Lifetime Income

| Amy Legate-Wolfe

Two Canadian dividend growers with decades of payout increases can be a simple foundation for lifetime passive income.

Read more »

nuclear power plant
Energy Stocks

A Canadian Company Set to Make a Fortune From the $650 Billion Data Centre Buildout

| Aditya Raghunath

Tech giants need nuclear power to run their AI data centres. This Canadian uranium miner could be one of the…

Read more »

Woman running in front of pack in marathon
Energy Stocks

The Best High-Yield Dividend Stock to Buy Right Now for Unbeatable Income

| Christopher Liew, CFA

An outperforming high-yield dividend stock is a strong buy candidate right now for investors seeking outsized income.

Read more »

dividend growth for passive income
Energy Stocks

2 Dividend Stocks to Buy if You Want Income and Growth

| Joey Frenette

TC Energy (TSX:TRP) and another dividend star worth buying up here.

Read more »

woman stares at chocolate layer cake
Energy Stocks

The Average TFSA and RRSP for a 45-Year-Old Canadian

| Christopher Liew, CFA

Canadians at age 45 have significant headroom in their TFSA and RRSP to build retirement wealth on a 20-year runway.

Read more »

monthly calendar with clock
Energy Stocks

A 6% Dividend Stock Paying Out Monthly

| Karen Thomas, MSc, CFA

Here's why you should consider Peyto Exploration and Development as your high-yield monthly dividend payor.

Read more »

pumpjack on prairie in alberta canada
Energy Stocks

Got $25,000? Turn Your TFSA Into a Cash-Pumping Machine

| Amy Legate-Wolfe

A $25,000 TFSA can start producing real tax-free income, but only if you have enough contribution room to avoid penalties.

Read more »

ARC resources's ante creek asset
Energy Stocks

ARC Resources Agrees to Buyout by Shell: What Investors Need to Know

| Motley Fool Staff

Now that shareholders have approved the deal, we're just waiting for finalization.

Read more »

crisis concept, falling stairs
Energy Stocks

1 Canadian Dividend Stock Down 14% to Buy and Hold for Decades

| Andrew Walker

This TSX energy company has increased its dividend annually for decades.

Read more »

dividend growth for passive income
Energy Stocks

3 Ultra-High-Yield Energy Dividend Stocks to Buy and Hold for 2026

| Demetris Afxentiou

These energy dividend stocks offer yields of up to 7.2%, combining pipeline stability, royalty income, and producer upside for 2026.

Read more »

Woman running in front of pack in marathon
Energy Stocks

Suncor Stock in 3 Years: Could This Dividend Giant Still Beat the TSX?

| Amy Legate-Wolfe

This energy major does not need oil to soar every month. It needs enough cash flow to reward investors, strengthen…

Read more »

concept of growth
Energy Stocks

3 Ultra-High-Yield Energy Dividend Stocks to Buy and Hold for 2026

| Adam Othman

Add these three TSX energy stocks to your investment radar if you’re on the hunt for high-yielding dividends to add…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Energy Stocks

How to Use Your TFSA to Double Your Annual Contribution

| Adam Othman

Make the most of your TFSA contribution room by using the additional limit to get far more returns.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Where I See Enbridge Stock Heading Over the Next 3 Years

| Demetris Afxentiou

Enbridge stock could offer investors steady income and gradual growth over the next three years as major projects come online.

Read more »

a man celebrates his good fortune with a disco ball and confetti
Energy Stocks

Where Will Enbridge Stock Be in 3 Years?

| Rajiv Nanjapla

Given its resilient business model, consistent dividend growth, and attractive long-term return potential, Enbridge remains an excellent investment for long-term…

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

1 High-Yield Dividend Stock You Can Buy and Hold for a Decade

| Andrew Walker

This stock offers a 5% yield and good growth prospects.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Energy Stocks

How Much You Really Need in a TFSA to Make $800 a Month

| Amy Legate-Wolfe

A TFSA paying $800 a month sounds great, but the real challenge is building the balance needed to produce $9,600…

Read more »

Canadian investor contemplating U.S. stocks with multiple doors to choose from.
Energy Stocks

Enbridge vs. Suncor: The Dividend Pick I’d Own Through 2026

| Joey Frenette

Enbridge (TSX:ENB) and Suncor Energy (TSX:SU) are cheap dividend growers, but only one is the better bet for the second…

Read more »

man makes the timeout gesture with his hands
Energy Stocks

Enbridge Stock: Buy, Sell, or Hold in Summer 2026?

| Amy Legate-Wolfe

Enbridge is a “boring on purpose” dividend payer, and in summer 2026 it still looks like a hold, or a…

Read more »

oil pumps at sunset
Energy Stocks

1 Dividend Stock That’s Been Quietly but Constantly Raising Its Dividend

| Demetris Afxentiou

This dividend stock offers a 4.2% yield, 26 consecutive years of dividend increases, and a strong business that generates cash…

Read more »

drinker sniffs wine in a glass
Energy Stocks

What the Average Canadian TFSA Balance Looks Like at 70

| Jitendra Parashar

Many Canadians reach 70 with a solid TFSA balance. The next step is choosing investments that can keep delivering income…

Read more »

Data Center Engineer Using Laptop Computer crypto mining
Energy Stocks

1 Canadian Stock Set to Profit From Canada’s Data Centre Buildout

| Amy Legate-Wolfe

AI data centres may feel like software, but their massive power needs could make Brookfield Renewable a stealth winner.

Read more »

man crosses arms and hands to make stop sign
Energy Stocks

Enbridge: Buy, Sell, or Hold in 2026?

| Jitendra Parashar

Enbridge has rewarded investors with strong gains and dependable dividends, but is there still enough upside left to justify buying…

Read more »

Couple working on laptops at home and fist bumping
Energy Stocks

2 Canadian Dividend Stocks That Look Reasonably Priced Right Now

| Andrew Walker

These energy sector stocks have increased their dividends annually for decades.

Read more »

stock chart
Energy Stocks

1 Canadian Dividend Stock Down About 14% to Buy and Hold Forever

| Amy Legate-Wolfe

Suncor’s pullback looks less like a dividend warning and more like a chance to buy a cash-generating energy heavyweight at…

Read more »

Meta buildout in Alberta and stocks to watch
Energy Stocks

The Sneaky Stocks to Profit From Meta’s $13 Billion Data Centre in Alberta

| Iain Butler and Nick Sciple

Meta just announced a US$13 billion AI data centre in Alberta — but the real investing story here isn't Meta…

Read more »

Canadian investor contemplating U.S. stocks with multiple doors to choose from.
Energy Stocks

Suncor Stock vs. Enbridge Stock: Which Dividend Energy Stock Looks Better Now?

| Rajiv Nanjapla

Let’s evaluate Suncor Energy and Enbridge to see which of these two dividend energy stocks offers the better buying opportunity…

Read more »

truck transport on highway
Energy Stocks

1 Canadian Energy Stock Positioning for a Big 2026

| Amy Legate-Wolfe

Canada’s LNG exports are finally real, and Tourmaline may be one of the biggest ways to benefit.

Read more »