Member Login
  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

Dividend Stocks

3 Awesome Canadian Stocks to Buy Cheap Now

| Christopher Liew, CFA

Yield-hungry investors can feast on three cheap but awesome Canadian stocks now. You can create recurring passive income from high-dividend…

Read more »

close-up photo of investor Warren Buffett
Dividend Stocks

As Markets Touch Record Highs, Warren Buffett Looks to Be Wary of Valuations

| Vineet Kulkarni

The broader markets have shown a remarkable bounce-back rally since last year, but Warren Buffett has largely been a net…

Read more »

Dividend Stocks

3 Top Canadian Stocks to Buy Now for Passive Income

| Sneha Nahata

Their strong fundamentals, a high-quality earnings base, and good growth opportunities could continue to drive future dividends. 

Read more »

Energy Stocks

4 Canadian Stocks That I Would Never Sell

| Rajiv Nanjapla

Given their recession-proof business model and healthy growth prospects, these four Canadian stocks could continue to boost shareholders' returns.

Read more »

investment research
Dividend Stocks

2 Fantastic Canadian Stocks to Buy in 2021

| Christopher Liew, CFA

Restaurant Brands International stock and ARC Resources stock are the best buys in 2021. Business growth is almost certain and…

Read more »

Dividend Stocks

Warren Buffett Warns: Inflation Is Coming

| Andrew Button

Inflation is on the rise in North America, but Suncor Energy Inc (TSX:SU)(NYSE:SU) actually profits from the trend.

Read more »

Dividend Stocks

2 No-Brainer Stocks to Buy on the TSX in 2021

| Adam Othman

Kirkland Lake Gold and Fortis Inc. are ideal stock picks you should have on your radar right now.

Read more »

Energy Stocks

4 Top Canadian Stocks Under $100 to Buy Today

| Sneha Nahata

The ongoing vaccination and revival in consumer demand have reignited hopes of solid growth in stocks.

Read more »

Dividend Stocks

Enbridge (TSX:ENB) Stock: A Top Stock to Buy Now

| Karen Thomas, MSc, CFA

Enbridge's stock price is set to rally, as this top stock to buy now benefits from continued strong cash flows…

Read more »

Dividend Stocks

4 Canadian Stocks to Buy With the $299 Average GST Refund

| Puja Tayal

Have you filed your income tax returns? You can get an average GST return of $299. You can buy four…

Read more »

Dividend Stocks

Buy These 3 Dividend Stocks Amid Rising Volatility

| Rajiv Nanjapla

Given their healthy growth prospects, stable cash flows, and strong liquidity position, I believe these three Canadian stocks could stabilize…

Read more »

Dividend Stocks

2 of the Best Canadian Stocks Under $7 You Can Buy

| Adam Othman

Rogers Sugar and Sangoma Technologies could be excellent investments for value-seeking investors looking for long-term wealth growth.

Read more »

investment research
Dividend Stocks

3 Dividend Studs to Grab in May

| Andrew Button

Canadian dividend stocks like Enbridge Inc (TSX:ENB)(NYSE:ENB) are looking good.

Read more »

Dividend Stocks

Got $3,000? 3 TSX Stocks to Buy Today

| Vineet Kulkarni

Although markets are trading close to all-time highs, some TSX stocks still offer handsome growth potential.

Read more »

Dividend Stocks

Enbridge (TSX:ENB) Earnings: Excellent Results for Q1 2021

| Adam Othman

It might be time to buy up Enbridge Inc. shares after it reported excellent numbers in its first-quarter report for…

Read more »

Dividend Stocks

Dogefather Sends Dogecoin to the Moon: Is Crypto Worth the Risk?

| Puja Tayal

Elon Musk is popularly known as Dogefather these days for the support he is giving to Dogecoin. Is Musk’s support enough…

Read more »

Dividend Stocks

Got $1,000? 3 Rallying TSX Stocks to Buy Right Now

| Vineet Kulkarni

While TSX stocks appear shaky, as they linger around their record highs, some indicators suggest a continued rally.

Read more »

Dividend Stocks

1 Top Canadian Energy Stock to Buy Right Now

| Chris MacDonald

Here's why Suncor Energy (TSX:SU)(NYSE:SU) continues to be one of my top picks in the energy sector today.

Read more »

stock research, analyze data
Energy Stocks

Why Canadian Natural Resources Is Soaring Right Now

| Chris MacDonald

Here's why Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) is an intriguing long-term pick in the commodities space today.

Read more »

Dividend Stocks

Ready for the Global Economy Reopening? Buy These 3 TSX Stocks

| Christopher Liew, CFA

Canada’s economy should achieve a 4.5% growth in 2021 if mass vaccination begins on mid-year. Meanwhile, investors preparing for the…

Read more »

Energy Stocks

Booming Commodity Prices: 1 Value Stock to Benefit

| Nikhil Kumar

Shawcor Ltd. (TSX:SCL) trades at an inexpensive valuation and could be a great long-term buy for retail investors.

Read more »

Dividend Stocks

TFSA Investors: Hold Off on U.S. Stocks. TSX Dividends Are Tax-Free

| Christopher Liew, CFA

Holding U.S. stocks is not beneficial to TFSA investors, because the account loses its tax-exemption status. Enbridge stock is a…

Read more »

Tech Stocks

Here Are 5 Top Canadian Stocks to Buy With $1,000

| Sneha Nahata

These TSX stocks are offering good value and could deliver solid strong returns in the medium- to long-term horizon.

Read more »

Energy Stocks

Elon Musk Says Bitcoin Is Not Green: How Does This Impact BTC?

| Puja Tayal

Elon Musk has suddenly backed out of accepting Bitcoin as a payment for Tesla cars. How this will impact BTC…

Read more »

calculate and analyze stock
Energy Stocks

3 Top Canadian Stocks to Buy and Hold for Next 5 Years

| Rajiv Nanjapla

Given their solid underlying business and healthy long-term growth prospects, these three Canadian stocks could deliver superior returns over the…

Read more »

Energy Stocks

Suncor Stock: Buy for Value, Stay for Dividend Growth

| Amy Legate-Wolfe

Suncor Energy (TSX:SU)(NYSE:SU) continues to climb this year, so investors should buy Suncor stock while it's still valuable!

Read more »

Energy Stocks

Forget Dogecoin: Follow Warren Buffett’s Advice and Invest in These 2 TSX ETFs

| Vineet Kulkarni

Elon Musk’s U-turn related to his view on bitcoin should be an eye-opener for Dogecoin investors.

Read more »

Dividend Stocks

2 Top Undervalued Canadian Stocks to Buy in 2021

| Adam Othman

Suncor and Enbridge are two top Canadian stocks to buy if you are looking for undervalued picks on the TSX…

Read more »

Dividend Stocks

3 Safe Dividend-Paying Canadian Stocks to Buy Amid Volatility

| Sneha Nahata

Top Canadian dividend-paying stocks continue to generate strong cash flows and deliver solid returns to shareholders.

Read more »

Energy Stocks

Enbridge Stock Is a Top TSX Stock to Buy Today

| Joey Frenette

Enbridge (TSX:ENB)(NYSE:ENB) is a top TSX stock for income-savvy Canadians who want a huge 7.2% dividend yield for a low…

Read more »

Dividend Stocks

3 Bargain Stocks to Buy While They Are Still Cheap

| Christopher Liew, CFA

Investors still have cheap options, despite the TSX’s upward trend. Village Farms stock, Crescent Point Energy stock, and Ballard Power…

Read more »

Dividend Stocks

My Top 3 Picks for Canadian Dividend Stocks

| Christopher Liew, CFA

The TSX is fertile ground again for dividend investing. If you were to build a team of solid dividend payers,…

Read more »

Dividend Stocks

4 Top Canadian Stocks With Dividend Yields Above 5%

| Rajiv Nanjapla

Given their healthy growth prospects and steady cash flows, I believe these four Canadian stocks would be excellent buys for…

Read more »

Dividend Stocks

TFSA Investors: 2 Top Canadian Dividend Stocks to Buy Right Now

| Adam Othman

Algonquin Power and TC Energy could be ideal investments for TFSA users to lock in excellent dividend yields in their…

Read more »

Dividend Stocks

Alternative Investment: 2 Stocks to Hedge Your Portfolio Against Inflation

| Puja Tayal

As the government phases out fiscal stimulus, the fear of inflation is looming. Protect your portfolio from inflation with two…

Read more »

Energy Stocks

What Is the Line 5 Closure? How Could it Impact You?

| Steven Porrello

Michigan governor Gretchen Whitmer caused an uproar when she signed an executive order that gave Calgary-based Enbridge (TSX:ENB)(NYSE:ENB) 180 days…

Read more »

Dividend Stocks

3 Amazing Canadian Stocks I’d Buy Under $50 for 2021

| Sneha Nahata

These TSX stocks could deliver stellar returns in 2021 and are trading cheap.

Read more »

Dividend Stocks

2 TSX Stocks Under $50 to Buy at Age 35

| Puja Tayal

At age 35, do you have a sufficient investment in emergency and retirement funds? Only $50 a month in these…

Read more »

Energy Stocks

Suncor Stock: How High Could it Go?

| Andrew Walker

Suncor stock is up more than 50% in the past six months, but more big gains could be on the…

Read more »

Energy Stocks

Here’s Why I’d Buy Suncor Stock Today

| Ambrose O'Callaghan

The energy sector has been disrupted by a major cyberattack. However, I’m still looking to stack Suncor Energy Inc. (TSX:SU)(NYSE:SU)…

Read more »