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.

Top Articles

Energy Stocks

2 Top TSX Energy Stocks to Buy in January 2023

| Robin Brown

Here are two top TSX energy stocks that had a great year in 2022 and could be primed for strong…

Read more »

An engineer works at a hydroelectric power station, which creates renewable energy.
Energy Stocks

Why Algonquin Power & Utilities Stock Slid 49.3% Last Year

| Tony Dong, MSc, CETF®

Here's why shares of AQN fell hard last year.

Read more »

Energy Stocks

Is CNQ Stock a Buy in January 2023?

| Andrew Walker

CNQ stock is down from the 2022 high. Is it time to buy?

Read more »

Energy Stocks

Worried About a Recession? 3 TSX Giants to Outpace the Market

| Aditya Raghunath

Recession-resistant TSX stocks such as Fortis and Hydro One are well poised to deliver outsized returns to shareholders in 2023.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

The Best Energy Dividend Stock for a Decade of Passive Income

| Aditya Raghunath

Canadian Natural Resources is a top TSX stock that has delivered stellar gains to long-term investors. Let's see why CNQ…

Read more »

oil and gas pipeline
Energy Stocks

Enbridge Is a High-Yielding Canadian Dividend Stock to Buy Now and Own Forever

| Adam Othman

Consider adding Enbridge stock to your portfolio, as it still trades below its all-time highs to capture its high-yielding dividend…

Read more »

Dividend Stocks

3 Growth Stocks You Can Buy Right Now with Less Than $100

| Christopher Liew, CFA

Capital of less than $100 is enough to buy one of these three promising growth stocks that don't belong to…

Read more »

Energy Stocks

2 Energy Stocks You Can Buy Right Now to Play The EV Boom

| Adam Othman

Add these two Canadian renewable energy stocks to capitalize on the growing EV popularity.

Read more »

Recent Energy Stocks News

Oil industry worker works in oilfield
Energy Stocks

Top Energy Stocks to Invest in for 2026

| Christopher Liew, CFA

Three TSX energy stocks offer a mix of income and value while bypassing the sector’s potential volatility in 2026.

Read more »

Utility, wind power
Dividend Stocks

Energy Sector Strength: A Canadian Producer That Can Thrive in Any Market

| Andrew Button

Suncor Energy (TSX:SU) can thrive in any market.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Energy Stocks

2 Canadian Dividend Stars Set for Strong Returns

| Rajiv Nanjapla

These two top dividend stocks can deliver superior returns in this uncertain outlook.

Read more »

monthly calendar with clock
Energy Stocks

This 6.3% Dividend Stock Pays Cash Every Single Month

| Aditya Raghunath

Whitecap Resources is a monthly dividend stock that offers you a tasty yield of 6.3% in 2026, making it a…

Read more »

people relax on mountain ledge
Energy Stocks

Invest $7,000 in This Dividend Stock for $710.50 in Passive Income

| Christopher Liew, CFA

A high-yield dividend stock and market leader is a desirable option for income-seeking TFSA investors.

Read more »

oil pump jack under night sky
Energy Stocks

Where Will Enbridge Stock Be in 5 Years?

| Daniel Da Costa

Here's what investors can expect from one of the best long-term dividend stocks in Canada, Enbridge, over the next five…

Read more »

dividend growth for passive income
Energy Stocks

Invest $7,000 in This Dividend Stock for $567 in Annual Passive Income

| Aditya Raghunath

Alvopetro Energy is a high-yield energy stock that offers significant upside potential to shareholders over the next three years.

Read more »

The sun sets behind a power source
Energy Stocks

3 Top Utility Sector Stocks for Canadian Investors in 2026

| Chris MacDonald

For investors looking for increased exposure to the utility sector, these are three stocks to consider right now.

Read more »

alcohol
Energy Stocks

Could This Undervalued Canadian Stock Be Your Ticket to Millionaire Status?

| Chris MacDonald

There are plenty of undervalued stocks in the market for investors to consider, but this Canadian company could provide the…

Read more »

man looks worried about something on his phone
Top TSX Stocks

Enbridge: Buy, Sell, or Hold in 2026?

| Demetris Afxentiou

Enbridge stock is a divisive pick among investors. Here’s a look at whether investors should buy, sell, or hold in…

Read more »

Two seniors walk in the forest
Energy Stocks

Age 65? The Average TFSA Balance Isn’t Enough

| Amy Legate-Wolfe

At 65, the average TFSA balance is a useful checkpoint and Emera can be a steadier way to build tax-free…

Read more »

A lake in the shape of a solar, wind and energy storage system in the middle of a lush forest as a metaphor for the concept of clean and organic renewable energy.
Energy Stocks

2 No-Brainer Energy Stocks to Buy With $1,000 Right Now

| Sneha Nahata

These Canadian energy stocks are likely to benefit from high demand, driven by decarbonization, energy security, and digital infrastructure.

Read more »

Warning sign with the text "Trade war" in front of container ship
Energy Stocks

Outlook for Suncor Stock in 2026 

| Puja Tayal

Learn how Suncor Energy is navigating the new oil landscape and what it means for investors in the energy market.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Canadian Pipeline Stocks: TC Energy vs Enbridge

| Andrew Walker

TC Energy and Enbridge are giants in the Canadian pipeline sector. Is one a better pick right now?

Read more »

Oil industry worker works in oilfield
Energy Stocks

Is Enbridge Stock a Dump for This Dividend Knight?

| Amy Legate-Wolfe

Enbridge is still a dependable dividend payer, but Brookfield Infrastructure offers a more growth-tilted income story for 2026.

Read more »

donkey
Energy Stocks

The Only Canadian Stock I Refuse to Sell

| Christopher Liew, CFA

Enbridge is the only Canadian stock I will buy now and hold – or even refuse to sell a single…

Read more »

Man meditating in lotus position outdoor on patio
Energy Stocks

Enbridge Stock: Buy Now or Wait for More Downside?

| Andrew Walker

Enbridge is down in recent months. Has the pullback gone too far?

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

If I Could Only Buy 2 Dividend Stocks in 2026, These Would Be My Picks

| Sneha Nahata

These TSX stocks are likely well-positioned to maintain their payouts and increase their dividend year after year.

Read more »

The sun sets behind a power source
Energy Stocks

Canadian Utility Stocks Poised to Win Big in 2026

| Adam Othman

Add these two TSX Canadian utility stocks to your self-directed investment portfolio as you gear up for another year of…

Read more »

Pumps await a car for fueling at a gas and diesel station.
Energy Stocks

Canadian Oil and Gas Stocks to Watch for in 2026

| Christopher Liew, CFA

Canadian oil and gas stocks with integrated business models are strong buys in 2026 amid changing dynamics.

Read more »

leader pulls ahead of the pack during bike race
Energy Stocks

Outlook for Cenovus Stock in 2026

| Brian Paradza, CFA

Can Cenovus stock continue its momentum throughout 2026?

Read more »

oil pump jack under night sky
Energy Stocks

A Canadian Energy Stock Poised for Big Growth in 2026

| Aditya Raghunath

Down 29% from al-time highs, Tourmaline Oil is a TSX energy stock that offers shareholders upside potential over the next…

Read more »

Investor wonders if it's safe to buy stocks now
Energy Stocks

Canadian Natural Resources: Buy, Sell, or Hold in 2026?

| Brian Paradza, CFA

Buy, Sell, or Hold? Ignore the speculative headlines. With a 5.2% yield and 3% production growth, Canadian Natural Resources stock…

Read more »

Concept of multiple streams of income
Energy Stocks

An Incredible Canadian Dividend Stock Up 19% to Buy and Hold Forever

| Amy Legate-Wolfe

Suncor’s surge looks earned, powered by real cash flow, strong operations, and aggressive buybacks that support long-term dividends.

Read more »

monthly calendar with clock
Energy Stocks

Passive Income Investors: This TSX Stock Has a 6.5% Dividend Yield With Monthly Payouts

| Chris MacDonald

Let's dive into why Whitecap Resources (TSX:WCP) and its 6.5% dividend yield (paid monthly) is worth considering right now.

Read more »

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

Tourmaline Oil Stock Has Been Tanking So Far in 2026: Is the Sell-Off a Buying Opportunity?

| Puja Tayal

Learn about Tourmaline oil stock amidst geopolitical tensions and its significance in Canada's oil exports to the United States.

Read more »

Yellow caution tape attached to traffic cone
Energy Stocks

2 Stocks You May Want to Avoid at All Costs in 2026

| Puja Tayal

Get insights on stock investment strategies for 2026 as uncertainties push investors toward more cautious choices.

Read more »

dividends grow over time
Energy Stocks

3 High-Conviction Stocks With 10X Potential by 2035

| Karen Thomas, MSc, CFA

BlackBerry is just one of my high-conviction stocks that I believe have massive potential for outsized shareholder returns.

Read more »

earn passive income by investing in dividend paying stocks
Energy Stocks

1 Reason I’ll Never Sell This ‘Boring’ Utility Stock

| Demetris Afxentiou

Owning a utility stock in your portfolio can be a source of growth and stable, recurring income. Here’s one every…

Read more »

dividends grow over time
Energy Stocks

1 Canadian Energy Stock Poised for Big Growth in 2026

| Karen Thomas, MSc, CFA

Canadian energy stocks like Tourmaline Oil are well-positioned as bullish natural gas fundamentals should really take hold in 2026.

Read more »

Hourglass and stock price chart
Energy Stocks

Where Will Enbridge Stock Be in 5 Years?

| Brian Paradza, CFA

Enbridge is no longer just a pipeline stock. Here is a 2030 forecast for the 6.1% yielder as it pivots…

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Outlook for TC Energy Stock in 2026

| Brian Paradza, CFA

TC Energy stock generated an industry-leading total return exceeding 17% last year. Can growing EBITDA and a hidden AI-energy asset…

Read more »

Group of people network together with connected devices
Energy Stocks

A 4.5% Dividend Stock That’s a Standout Buy in 2026

| Amy Legate-Wolfe

TC Energy stands out for 2026 because it pairs a meaningful dividend with contracted-style cash flows and a clearer, simplified…

Read more »

a person watches stock market trades
Energy Stocks

Outlook for Canadian Natural Resources Stock in 2026

| Aditya Raghunath

CNQ is a blue-chip TSX dividend stock that has crushed broader market returns in the past 10 years. Is it…

Read more »

The RRSP (Canadian Registered Retirement Savings Plan) is a smart way to save and invest for the future
Energy Stocks

RRSP Investors: 2 TSX Dividend Stocks to Consider for 2026

| Andrew Walker

These stocks are contrarian picks for 2026.

Read more »

Child measures his height on wall. He is growing taller.
Energy Stocks

A Canadian Energy Stock Poised for Major Growth in 2026

| Amy Legate-Wolfe

ARC Resources could be a 2026 energy standout because it pairs Montney scale with disciplined spending and growing shareholder returns.

Read more »

Dividend Stocks

Suncor Energy: Buy Now or Wait?

| Andrew Walker

Suncor just hit a multi-year high. Are more gains on the way?

Read more »

Hourglass and stock price chart
Energy Stocks

Two High-Yield Dividend Stocks You Can Buy and Hold for a Decade

| Andrew Walker

These companies have increased their dividends annually for decades.

Read more »

Oil industry worker works in oilfield
Energy Stocks

Canadian Investors: Should You Buy Canadian Natural Resources Stock While Under $45?

| Brian Paradza, CFA

Is the Venezuela scare a threat or an opportunity? Here is why Canadian Natural Resources (TSX:CNQ) stock looks like a…

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Canadian Energy Stocks Took a Big Hit to Start 2026: Should Investors Worry?

| Joey Frenette

iShares S&P/TSX Capped Energy Index ETF (TSX:XEG) and Canadian crude have taken a hit to start the year, but it…

Read more »