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

Energy Stocks

Market Crash: Protect Your Portfolio with These 3 Defensive Bets

| Rajiv Nanjapla

With their recession-proof business model and strong liquidity positions, these three stocks can withstand an economic downturn.

Read more »

Dividend Stocks

2 of the Smartest Stocks to Buy Right Now

| Adam Othman

The crash might be in the past, but many stocks are still carrying the burden it left and haven't adequately…

Read more »

Dividend Stocks

Alberta Is on Track for a $24 billion deficit in 2020

| Adam Othman

Energy companies like Suncor could play a vital role in helping Alberta recover from its massive $24 billion deficit as…

Read more »

Energy Stocks

Got $1,000? These 3 TSX Stocks Could Soar in a Post-Pandemic World

| Aditya Raghunath

Here's why you can look to buy beaten-down stocks such as Air Canada (TSX:AC) and Suncor (TSX:SU)(NYSE:SU) to benefit from…

Read more »

Dividend Stocks

CRA CERB Extended by $2,000: Finally Some Good News

| Christopher Liew, CFA

The CERB extension and the coming emergency measures have prescribed periods. It’s still best to earn perpetual income from reliable…

Read more »

Dividend Stocks

Forget Suncor (TSX:SU): This Energy Stock Has a 7.5% Yield!

| Andrew Button

Suncor Energy (TSX:SU)(NYSE:SU) is a pretty popular dividend stock, but this one pipeline company has a much higher yield.

Read more »

Dividend Stocks

3 Top Stocks to Buy in September

| Stephanie Bedard-Chateauneuf, MBA

Barrick Gold (TSX:ABX)(NYSE:GOLD), Innergex Renewable Energy (TSX:INE), and Metro (TSX:MRU) are three top stocks to buy in September.

Read more »

Dividend Stocks

Got $500? Consider These 3 TSX Stocks That Could Soar Post-Pandemic

| Vineet Kulkarni

Here are three top TSX stocks that could see a massive recovery after the pandemic. Do you have any of…

Read more »

close-up photo of investor Warren Buffett
Dividend Stocks

Billionaire Diaries: What Did Warren Buffett Buy on His 90th Birthday?

| Puja Tayal

Warren Buffett celebrated his 90th birthday in August with some interesting stock purchases. What can you take away from Buffett’s…

Read more »

Dividend Stocks

Should Suncor (TSX:SU) Stock or Enbridge (TSX:ENB) Stock Be in Your TFSA?

| Andrew Walker

Suncor (TSX:SU) and Enbridge (TSX:ENB) are cheap stocks right now with attractive dividend yields. Is this the right time to…

Read more »

Dividend Stocks

2 Things Buffett Is Doing to Avoid Losing Money

| Puja Tayal

Many analysts are touting a second market crash when the government aid eases. See what Warren Buffett is doing to…

Read more »

Dividend Stocks

Here’s How the Upcoming Market Crash Can Make You a Millionaire

| Daniel Da Costa

It's not often that the stock market has a major crash, creating exceptional buying opportunities for investors. Here's how you…

Read more »

Dividend Stocks

Better Buy: Enbridge (TSX:ENB) Stock or This Other 7.7% Dividend Stock?

| Kay Ng

Should you buy Enbridge (TSX:ENB)(NYSE:ENB) stock or its peer for a juicy 7.7% dividend yield?

Read more »

Dividend Stocks

3 Dividend Aristocrat Stocks That Haven’t Cut Dividends in the Pandemic

| Adam Othman

The pandemic has decimated the earnings of many businesses. Several Dividend Aristocrats have slashed their dividends, even if it is…

Read more »

Dividend Stocks

3 TSX Dividend Stocks for First-Time Investors to Buy in September

| Vineet Kulkarni

Some high-quality, dividend-paying TSX stocks look attractive at the moment. Consider these stocks for solid long-term total return potential.

Read more »

Dividend Stocks

Retirees: Did COVID-19 Ruin Your Retirement Plans?

| Christopher Liew, CFA

The lingering fear of the pandemic and the financial uncertainty that comes with it are ruining retirement plans. To ensure…

Read more »

Dividend Stocks

4 TSX Darling Stocks That Dug a Deep Hole in Investors’ Pockets in 2020

| Vineet Kulkarni

Amid the recent epic rally, some TSX stocks recovered, while some dug a deep hole in investors’ pockets. Do you…

Read more »

Dividend Stocks

28 Weeks of CRA CERB Now: Are You Eligible for $14,000?

| Adam Othman

Invest in Brookfield Renewable Partners LP to secure your financial freedom as you prepare to transition to the post-CERB era.

Read more »

Dividend Stocks

Enbridge (TSX:ENB): The Best Dividend Stock for September?

| Ryan Vanzo

Enbridge (TSX:ENB)(NYSE:ENB) stock has a 7.6% dividend backed by a monopoly business. Is this your best income bet for the…

Read more »

Dividend Stocks

2 Top Dividend Stocks for September 2020

| Kay Ng

Safely park your money in these blue-chip dividend stocks for massive dividend income. So, you don't need to rely on…

Read more »

Bank Stocks

3 Attractive Dividend Stocks to Buy Now

| Sneha Nahata

Holding these dividend-paying stocks for the long term could fetch you higher returns.

Read more »

Dividend Stocks

3 Evergreen Warren Buffett Quotes to Help You Invest Better!

| Aditya Raghunath

Follow Warren Buffett and invest in quality companies like Enbridge (TSX:ENB)(NYSE:ENB).

Read more »

Dividend Stocks

The Top 2 TSX Stocks I Would Buy in September

| Puja Tayal

The calendar page is turning, and the stock market indices are rallying. Buy these two stocks in September to enjoy…

Read more »

Dividend Stocks

Suncor (TSX:SU): Will This Stock Double in Price?

| Ryan Vanzo

Suncor (TSX:SU)(NYSE:SU) stock is trading near multi-year lows. Armed with a bargain valuation, is this the time to buy, or…

Read more »

Dividend Stocks

Warren Buffett: Is Another Stock Market Crash Inevitable?

| Puja Tayal

The stock market is surging, even though the GDP is contracting. The Warren Buffett Indicator signals that equities are overvalued…

Read more »

Energy Stocks

Warren Buffett: Is Air Canada (TSX:AC) Stock a Value Trap?

| Puja Tayal

When Warren Buffett sold his airline stocks in April, he exited the value trap the March-sell off created. Don’t fall…

Read more »

close-up photo of investor Warren Buffett
Dividend Stocks

Warren Buffett Sold 50% of His Canadian Stocks: Should You?

| Christopher Liew, CFA

Warren Buffett briefly held only one TSX stock after selling all his Restaurant Brands International stock holdings. But he’s back…

Read more »

Dividend Stocks

2 TSX Energy Stocks That Could Double in 12 Months

| Daniel Da Costa

These days after most sectors have had strong recoveries, the best value opportunities for long-term investors can be found in…

Read more »

Energy Stocks

2 TSX Dividend Stocks to Strengthen Your Portfolio

| Rajiv Nanjapla

With their high dividend yields and strong balance sheets, BCE and TransAlta Renewables could provide stability to your portfolio.

Read more »

Dividend Stocks

Canadians, $37 Billion CRA CERB Replacement Is Coming Your Way

| Christopher Liew, CFA

After CERB, displaced Canadians workers will have a new lifeline worth $37 billion. However, investment income from the Pembina Pipeline…

Read more »

Dividend Stocks

Should You Buy Enbridge (TSX:ENB) Stock for the 7.6% Yield?

| Joey Frenette

Enbridge Inc. (TSX:ENB)(NYSE:ENB) stock has been in the doghouse for years, but is the stock a buy with its now…

Read more »

Energy Stocks

Forget Enbridge (TSX:ENB): These 3 Stocks Could Make You a Fortune

| Nicholas Dobroruka

With all the headwinds surrounding the oil and gas sector today, I’m staying away from Enbridge stock for now. Instead,…

Read more »

Dividend Stocks

Want a Safe 10% Dividend Yield for Your TFSA? Here’s How You Can Get it

| David Jagielski

TC Energy Inc (TSX:TRP)(NYSE:TRP) pays a 5% yield today, but you can earn a lot more in dividend income if you…

Read more »

Dividend Stocks

Get Big Passive Income From These Renewable Energy Kings!

| Joey Frenette

Northland Power Inc. (TSX:NPI) and another compelling passive income stock that investors should look to scoop up amid the crisis.

Read more »

Dividend Stocks

CERB Ends in One Month! Prepare With These 3 Top Stocks

| Amy Legate-Wolfe

CERB has been a lifeline, but unfortunately it's coming to an end. So prepare by purchasing these three top stocks,…

Read more »

close-up photo of investor Warren Buffett
Dividend Stocks

Warren Buffett Was Right to Sell This Stock

| Puja Tayal

I know Air Canada (TSX:AC) stock is up 4%, but don’t buy it. Warren Buffett was right to sell its…

Read more »

Dividend Stocks

Retirees: Give Yourself a Raise With These 2 Passive Income Giants

| Aditya Raghunath

Here's why retirees can consider adding stocks such as Enbridge (TSX:ENB) to their portfolio and benefit from a regular stream…

Read more »

Dividend Stocks

Hooray! Canadians Can Get an Extra $400 GST Crisis Payment

| Christopher Liew, CFA

Every dollar counts in the pandemic that Canadians won’t pass up on the $400 GST one-time credit payment. A minimal…

Read more »

Energy Stocks

How to Retire Rich From a Juicy 7.6% yield

| Demetris Afxentiou

Investors looking for a superb income-producing stock to help them retire rich will be hard-pressed to find a better option…

Read more »

Dividend Stocks

Get Wealthy Like Warren Buffett With This Stock

| Robin Brown

Warren Buffett has made one major bet in 2020. Invest like the Oracle of Omaha and buy into this top-value,…

Read more »