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

These 3 Value Stocks Are Absurdly Cheap Right Now

| Adam Othman

It's been months since the crash, but you can still find amazing stocks that are trading at a very low…

Read more »

Dividend Stocks

TFSA Retirees: Generate an Extra $7,920 With This Ultimate Dividend Portfolio and Pay Zero Taxes to the CRA

| Aditya Raghunath

Here's how retirees can boost income and not be hit by CRA taxes.

Read more »

Dividend Stocks

Suncor (TSX:SU) Slashes Dividends by 55%

| Christopher Liew, CFA

Despite the 55% dividend cut, the Suncor stock remains a solid pick if you want exposure in the energy sector.…

Read more »

Dividend Stocks

Recession Warning: Earn $324 a Year in Passive Income Today

| Kris Knutson

Central banks are printing money at an incredible pace to keep interest rates artificially low. Right now, Enbridge Inc. (TSX:ENB)(NYSE:ENB)…

Read more »

Dividend Stocks

2 Stable Renewable Energy Stocks

| Demetris Afxentiou

Finding one or more stable renewable energy stocks can be a daunting task. Fortunately, these stocks offer growth and income-earning…

Read more »

Energy Stocks

Why These 3 TSX Stocks Rallied on Thursday

| Jitendra Parashar

Parex Resources (TSX:PXT), First Quantum (TSX:FM), and Cenovus Energy (TSX:CVE)(NYSE:CVE) are among the top TSX gainers on Thursday. Let’s find…

Read more »

Energy Stocks

Reopening Rollback: 2 TSX Stocks at Risk of Correcting

| Joey Frenette

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) and another TSX stock could pull back amid a potential economic reopening rollback.

Read more »

Dividend Stocks

Buy Enbridge (TSX:ENB) Stock at a Bargain Price Now

| Kay Ng

Buy Enbridge (TSX:ENB)(NYSE:ENB) stock on the pullback for passive income that exceeds market returns this year.

Read more »

Dividend Stocks

4 Safe Dividend Stocks for Canadian Investors

| Victoria Hetherington

TransAlta Renewables Inc. (TSX:RNW) and three other dividend aristocrats have proven resilient during the health crsis. Here’s why to get…

Read more »

Energy Stocks

3 TSX Stocks You Can Still Buy at a Discount

| Sneha Nahata

Missed the stock market rally? Consider buying these TSX stocks at a discount.

Read more »

Dividend Stocks

Don’t Cheat the CRA: Your $2,000 CERB Can Get You Fined

| Christopher Liew, CFA

After being too lenient, the CRA is starting to focus on CERB cheaters. Fines are forthcoming if you’re attempting to…

Read more »

close-up photo of investor Warren Buffett
Dividend Stocks

What Does Warren Buffett Know That We Don’t?

| Adam Othman

Suncor could be an attractive Warren Buffett stock as he continues to remain patient with the market right now.

Read more »

Dividend Stocks

CERB Is Taxable: Here’s How Much the CRA Can Tax Your $500/Week Benefit

| Aditya Raghunath

While your CERB will be taxed by the CRA, you can allocate stocks such as Emera to your TFSA and…

Read more »

Energy Stocks

3 TSX Penny Stocks to Buy Now in 2020

| Kay Ng

Looking for cheap penny stocks? Here are three that trade at $1 that could double your money!

Read more »

Energy Stocks

A Solid Dividend and 3 More Reasons to Buy This Stock

| Jitendra Parashar

There are many other reasons to buy Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) stock apart from its solid dividend. Let's explore.

Read more »

Dividend Stocks

Income Investing: 3 TSX Heavyweights to Buy

| Jared Seguin

Some top income investing stocks are now trading at great prices. These three TSX giants are now offering great yields…

Read more »

Dividend Stocks

If You Have $2,000, Buy These 2 Stocks Right Now

| Ryan Vanzo

If you have $2,000, strongly consider putting the capital into low-downside stocks like Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP).

Read more »

Dividend Stocks

Why Buy These 2 TSX Stocks for Your TFSA Portfolio Now?

| Sneha Nahata

TFSA investors should consider buying these two TSX stocks now for capital appreciation and steady income.

Read more »

Dividend Stocks

TFSA Investors: 3 Great Dividend Stocks Yielding Over 7.2%

| Aditya Raghunath

Investing in quality dividend stocks such as Enbridge (TSX:ENB)(NYSE:ENB) can help TFSA investors generate a passive stream of tax-free income.

Read more »

Dividend Stocks

3 TSX Stocks to Buy Before the Next Oil Rally

| Robin Brown

Oil is starting to rally and now may be the time to buy in! Here are three TSX energy stocks…

Read more »

Coronavirus

Why You Should Start Lapping Up Enbridge (TSX:ENB) Stock

| Sneha Nahata

With improving prospects and a 7.7% yield, investors should start to lap up Enbridge stock.

Read more »

Dividend Stocks

Retirees: Create Your Own Pension With These 3 Investments

| Aditya Raghunath

Retirees can look to buy CPP-backed stocks such as CNQ and BNS to supplement their pension payouts.

Read more »

Dividend Stocks

2 Stocks I Wouldn’t Want to Hold If the Market Crashes Again

| Joey Frenette

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) and another high-yield dividend stock that could fall sharply if coronavirus news worsens.

Read more »

Dividend Stocks

Buy These 2 Hot Stocks That Can Make You Wealthy

| Adam Othman

Consider investing in Jamieson Wellness and Northland Power for excellent bargains that can make you wealthy.

Read more »

Dividend Stocks

2 Dividend Stocks to Buy Right Now

| Ryan Vanzo

Dividend stocks like Hydro One Limited (TSX:H) and Brookfield Property Partners L.P. (TSX:BPY.UN)(NASDAQ:BPY) can protect you from downside.

Read more »

Dividend Stocks

3 Cheap Canadian Dividend Stocks to Buy Now

| Stephanie Bedard-Chateauneuf, MBA

If you're interested in dividend stocks, Enbridge Inc. (TSX:ENB)(NYSE:ENB) will give you a safe dividend that you can count on…

Read more »

Energy Stocks

3 Higher-Risk Stock Types to Sell Now

| Victoria Hetherington

Are names like Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) too risky to hold in a stock portfolio right now?

Read more »

Dividend Stocks

TFSA Investors: 3 Dividend Studs Yielding Up to 5.8%

| Nelson Smith

Build a TFSA passive income machine with stocks like CT REIT (TSX:CRT.UN), Brookfield Renewable Power (TSX:BEP.UN)(NYSE:BEP) and Sun Life Financial…

Read more »

Dividend Stocks

Investors: 3 Boring Stocks That Can Make You Rich

| Nelson Smith

It won't be an exciting journey, but boring stocks like Fortis (TSX:FTS)(NYSE:FTS), TC Energy (TSX:TRP)(NYSE:TRP) and National Bank of Canada…

Read more »

Energy Stocks

Investor Alert: This Energy Stock Is Yielding Over 7%!

| Karen Thomas, MSc, CFA

Canadian Natural Resources stock is a quality energy stock that provides investors with a generous dividend yield and significant upside.

Read more »

Dividend Stocks

CRA Snitch Line: CERB Cheaters Will Get Punished!

| Adam Othman

The CRA continued CERB, despite knowing that some people will abuse the system, because they needed to get the money…

Read more »

Dividend Stocks

Why You Should Buy This Oil Stock Now

| Debra Ray

Why Saudi Arabia Sovereign Wealth Fund's recent buy in the TSX oil stock, Canadian Natural Resources Ltd (TSX:CNQ)(NYSE:CNQ), makes sense.

Read more »

Dividend Stocks

Oil Rush! 2 Energy Stocks for the Coming Recovery

| Kris Knutson

Oil is a volatile space, so it might be better for more risk-averse investors to take advantage of the oil…

Read more »

Dividend Stocks

2 Common TFSA and RRSP Mistakes to Avoid

| Christopher Liew, CFA

Users of both the TFSA and RRSP should be aware of the purpose and rules regarding proper utilization. For the…

Read more »

Dividend Stocks

Supplement Your Monthly Income With These 3 TSX Stocks

| Sneha Nahata

Consider buying these TSX stocks for consistent monthly dividend income.

Read more »

Dividend Stocks

Income Investor: Buy These 3 Dividend Stocks for Long-Term Wealth!

| Kris Knutson

Growth stocks seem like a great deal today, but you would be better off putting your money into Canada's cheap…

Read more »

Dividend Stocks

Dividend Investing: 4 TSX Giants to Watch

| Jared Seguin

If you're looking at long-term dividend investing, these four stocks could be great choices. Find out which ones are offering…

Read more »

Dividend Stocks

Canada Revenue Agency: How to Generate $350 in Extra Monthly Pension Income and Avoid OAS Clawbacks

| Aditya Raghunath

Here's how you can invest in dividend-paying stocks like AltaGas to generate tax-free passive income.

Read more »

Dividend Stocks

CERB Isn’t Enough? Buy Dividend Stocks to Get More Passive Income

| Stephanie Bedard-Chateauneuf, MBA

The CERB might not be enough to cover your expenses since its only $2,000 per month and it's taxable. Buying…

Read more »

Dividend Stocks

Is Warren Buffett Too Old to Make Risky Bets?

| Adam Othman

Suncor and Restaurant Brands might be safe investments as Warren Buffett continues to play it safe in the stock market.

Read more »