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

hand stacks coins
Energy Stocks

Income Investors: These Canadian Dividend Aristocrats Are Raising Payouts Again

| Karen Thomas, MSc, CFA

Canadian Natural has increased its payout to 100% of cash flow, and special dividends from Tourmaline are ramping up shareholder…

Read more »

oil pump jack under night sky
Energy Stocks

Outlook for Suncor Energy Stock in 2025

| Adam Othman

Not all Canadian energy stocks are vulnerable to tariff hikes and the international oil price tug-of-war, but they can still…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

Outlook for Canadian Natural Resources Stock in 2025

| Adam Othman

There is a reasonable doubt among many Canadian investors that the energy sector might experience a brutal correction phase.

Read more »

how to save money
Energy Stocks

The Ultimate Energy Stock to Buy With $1,000 Right Now

| Christopher Liew, CFA

A top-performing small-cap stock in the energy sector is a screaming buy right now.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Top Energy Sector Stocks to Invest in for 2025

| Brian Paradza, CFA

Dodge U.S. tariffs! Top Canadian energy stocks including Suncor (TSX:SU) stock offer growing dividends and potential growth in 2025

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Trump Tariffs: Are Canadian Energy Stocks Still a Safe Haven for Investors?

| Puja Tayal

Trump tariffs have put Canadian energy stocks in the limelight. These stocks have outperformed post-pandemic. Can they continue doing so?

Read more »

Pumpjack in Alberta Canada
Energy Stocks

Canadian Natural Resources: Buy, Sell, or Hold in 2025?

| Tony Dong, MSc, CETF®

Here's my take when it comes to CNQ this year.

Read more »

happy woman throws cash
Energy Stocks

Best Stock to Buy Right Now: Brookfield Renewable vs Canadian Solar?

| Aditya Raghunath

Clean energy stocks such as Brookfield Renewable offer significant upside potential for long-term shareholders in 2025.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Invest $16,650 in this TSX Stocks for $1,000 in Passive Income

| Sneha Nahata

This TSX stock offers a 6% yield and will enable you to earn $1,000 in stress-free passive income with a…

Read more »

Make a choice, path to success, sign
Energy Stocks

2 Sectors That Could Take a Big Hit in a U.S.-Canada Trade War

| Puja Tayal

The potential of a U.S.-Canada trade war has sent shockwaves in the TSX. A few sectors could face the biggest…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Dividend Investors: Top Canadian Energy Stocks for February

| Puja Tayal

Are Canadian energy stocks worth considering amid the threat of import tariffs from the United States? Let's find the answer.

Read more »

oil pump jack under night sky
Energy Stocks

Better Energy Stock: Brookfield Renewable or Northland Power?

| Amy Legate-Wolfe

Renewable stocks have a strong outlook, but which of these two are the best to buy?

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Energy Stocks

Where Will Suncor Stock Be in 3 Years?

| Karen Thomas, MSc, CFA

Suncor continues to drive operational efficiencies and value. Expect this momentum to drive Suncor stock higher.

Read more »

oil and natural gas
Energy Stocks

Outlook for Canadian Natural Resources Stock in 2025

| Karen Thomas, MSc, CFA

We can expect more of the same for Canadian Natural Resources stock in 2025: strong production, returns, and shareholder value…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

What to Know About Canadian Energy Stocks in 2025

| Karen Thomas, MSc, CFA

Energy stocks like Canadian Natural Resources are well-positioned to benefit from strong energy markets in 2025.

Read more »

data analyze research
Energy Stocks

Enbridge Stock Has a Nice Yield, But This Dividend Stock Looks Safer

| Amy Legate-Wolfe

Don't be fooled by a pretty dividend yield. Dig deeper to find the real golden goose.

Read more »

Oil industry worker works in oilfield
Energy Stocks

Better Energy Stock: Suncor vs Canadian Natural Resources?

| Andrew Walker

Investors are wondering if Suncor (TSX:SU) or Canadian Natural Resources (TSX:CNQ) are undervalued and good to buy for a TFSA…

Read more »

dividends can compound over time
Energy Stocks

3 No-Brainer Energy Stocks to Buy Right Now for Less Than $500

| Amy Legate-Wolfe

Energy stocks offer returns, dividends, and more. But which offers the best long-term buy?

Read more »

3 colorful arrows racing straight up on a black background.
Energy Stocks

A Canadian Energy Stock Poised for Big Growth in 2025

| Amy Legate-Wolfe

The energy sector has faced a lot of changes this new year, so is this energy stock going to sink…

Read more »

Natural gas
Energy Stocks

Is Natural Gas the Smart Energy Investment Right Now?

| Adam Othman

For investors interested in energy, it's essential to look at the businesses and their fundamentals, not just the asset they…

Read more »

Hourglass and stock price chart
Energy Stocks

Invest $10,000 in This TSX Stock for $60.33 in Monthly Income

| Christopher Liew, CFA

A high-yield TSX stock can transform your $10,000 investment into monthly income streams and keep it intact.

Read more »

monthly desk calendar
Energy Stocks

Passive Income Investors: This TSX Stock Has an 8% Dividend Yield With Monthly Payouts

| Karen Thomas, MSc, CFA

This TSX stock benefits from operational excellence, which continues to drive the company's strong results and dividend reliability.

Read more »

Utility, wind power
Energy Stocks

Renewable Energy Is a Must-Watch Sector This Year

| Amy Legate-Wolfe

Renewable energy stocks are here to stay and could in fact provide a huge investment opportunity this year.

Read more »

oil pump jack under night sky
Energy Stocks

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

| Jitendra Parashar

With their solid long-term growth prospects, these two value energy stocks could give you strong returns in the long run.

Read more »

engineer at wind farm
Energy Stocks

Suncor Energy: Buy, Sell, or Hold in 2025?

| Chris MacDonald

Here's the buy, sell or hold case for Suncor (TSX:SU) in 2025, given the shifting market dynamics and interest around…

Read more »

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

Outlook for Fortis Stock in 2025

| Karen Thomas, MSc, CFA

The year ahead looks good for Fortis stock, as the company ramps up its spending amidst the possibility of new…

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Got $1,000? 3 Pipeline Stocks to Buy and Hold Forever

| Jitendra Parashar

Here are three top dividend-paying Canadian pipeline stocks you can buy right now and hold for as long as you…

Read more »

man touches brain to show a good idea
Energy Stocks

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

| Rajiv Nanjapla

Given their solid underlying businesses and healthy growth prospects, I am bullish on these three energy stocks.

Read more »

oil pump jack under night sky
Energy Stocks

Top Energy Sector Stocks to Invest in for 2025

| Chris MacDonald

Here are three top Canadian energy sector stocks that look like solid buys in 2025 for those looking to ride…

Read more »

A meter measures energy use.
Energy Stocks

Got $2,500? 3 Utility Stocks to Buy and Hold Forever

| Sneha Nahata

These utility stocks are known for their solid earnings and consistent dividend growth, making them compelling investments.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Got $2,500? 3 Energy Stocks to Buy and Hold Forever

| Sneha Nahata

Along with capital gains, many Canadian energy stocks often pay dividend or enhance shareholder value through share buybacks.

Read more »

Oil industry worker works in oilfield
Energy Stocks

Canadian Investors: Should You Buy Canadian Natural Resources Stock While Under $50?

| Amy Legate-Wolfe

If there's one thing I love, it's a deal. And right now, CNQ stock looks like it could be a…

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Better Pipeline Stock: Enbridge vs. TC Energy?

| Aditya Raghunath

Enbridge and TC Energy are two pipeline stocks that offer shareholders tasty dividend yields in January 2025.

Read more »

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

2 TSX Stocks to Invest $20,000 and Create $2,597.60 in Passive Income

| Amy Legate-Wolfe

Need income? We got you, with these two top dividend stocks due for more solid growth and passive income.

Read more »

money cash dividends
Dividend Stocks

Trump Tariffs: 1 TSX Stock That Could Take a Huge Hit

| Christopher Liew, CFA

This TSX stock hopes to improve shareholder returns in 2025 but could take a huge hit instead from Trump’s tariffs.

Read more »

canadian energy oil
Energy Stocks

Invest $21,000 in 1 Dividend Stock and Create $1,224 in Passive Income

| Amy Legate-Wolfe

This one dividend stock is a great option for those looking toward the future, with growth opportunities and dividends on…

Read more »

bulb idea thinking
Energy Stocks

What to Know About Canadian Energy Stocks in 2025

| Amy Legate-Wolfe

Energy stocks like these look promising in 2025, but there are still a few items investors need to watch.

Read more »

oil and natural gas
Energy Stocks

3 Top Energy Sector Stocks for Canadian Investors in 2025

| Sneha Nahata

These energy companies have a solid business model, generate growing cash flows and pay higher dividends to their shareholders.

Read more »

oil pump jack under night sky
Energy Stocks

1 Canadian Energy Stock Poised for Big Growth In 2025

| Adam Othman

Undervaluation, a heavy discount, and a favourable regional outlook might push one energy stock up, even if the sector is…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

1 Canadian Energy Stock Poised for Big Growth in 2025

| Amy Legate-Wolfe

Enbridge stock is looking more and more attractive these days, especially with a 6% dividend yield on deck.

Read more »