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

Dividend Stocks

Energy Shares Offer Investors 2 Smart Pre-Recession Plays

| Victoria Hetherington

Energy stocks like Enbridge Inc. (TSX:ENB)(NYSE:ENB) are relatively undervalued, and could see some growth as inflation runs its course.

Read more »

Energy Stocks

3 of the Most Surprising Stocks Halfway Through 2019

| Christopher Liew, CFA

Air Canada (TSX:AC)(TSX:AC.B), Canadian National Railway Company (TSX:CNR)(NYSE:CNI), and TC Energy Corp (TSX:TRP)(NYSE:TRP) are among the biggest surprises on the…

Read more »

Energy Stocks

Are These 3 Energy Stocks a Bargain?

| Ambrose O'Callaghan

Stocks like Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Vermilion Energy Inc. (TSX:VET)(NYSE:VET) have been throttled this summer.

Read more »

Dividend Stocks

2 Top Energy Stocks to Power Your Portfolio

| Daniel Da Costa

Integrated energy companies are much more stable investments than a traditional exploration company. Two top integrated stocks are Cenovus Energy…

Read more »

Dividend Stocks

TFSA Investors: This Stock Just Hit an Amazing Buy Point

| Kris Knutson

Due to its volatility, excellent dividend, and long-term growth prospects, Methanex Corp. (TSX:MX)(NASDAQ:MEOH) makes a great TFSA purchase at this…

Read more »

Dividend Stocks

TFSA Investors: 3 Rock-Solid Dividend Payers Yielding +6%

| Nelson Smith

Capital Power Corp (TSX:CPX), Rogers Sugar Inc. (TSX:RSI), and Northview Apartment REIT (TSX:NVU.UN) offer some of the sweetest dividends around.

Read more »

Energy Stocks

3 Stocks for People Who Hate Investing

| Amy Legate-Wolfe

Investing can be a lot of work, frankly. So consider Royal Bank of Canada (TSX:RY)(NYSE:RY) and these other stocks to buy,…

Read more »

Energy Stocks

A Top Income Stock for Your RRSP

| Mat Litalien, MBA

Pembina Pipeline Corp's (TSX:PPL)(NYSE:PBA) stock is the perfect defensive investment. It provides a safe and high yield, and it is…

Read more »

Dividend Stocks

Construction to Resume on Trans Mountain: Is Now the Time to Buy Enbridge (TSX:ENB) Stock?

| David Jagielski

Enbridge Inc (TSX:ENB)(NYSE:ENB) and other oil and gas stocks could see investment dollars return to the industry if the Trans Mountain…

Read more »

Dividend Stocks

1 Safe Dividend Stock to Make Your TFSA Bulletproof

| Joey Frenette

Enbridge Inc. (TSX:ENB)(NYSE:ENB) is a top pick as the markets head south.

Read more »

Dividend Stocks

Retirees: Boost Your CPP Payments the Easy Way

| Christopher Liew, CFA

Retirees who are uncertain of receiving the maximum CPP benefits can invest in BCE Inc. (TSX:BCE)(NYSE:BCE), Canadian Imperial Bank of…

Read more »

Energy Stocks

3 Explosive Stocks Under $7 to Make Your First Million

| Brian Pacampara, CFA

Looking for big upside? This group of explosive penny stocks, including HEXO Corp (TSX:HEXO)(NYSE:HEXO), might provide the pop you're looking…

Read more »

Energy Stocks

3 Under-the-Radar Stocks to Buy Immediately

| Christopher Liew, CFA

Investors are failing to notice the earning potentials from Ceridian HCM Holding Inc. (TSX:CDAY)(NYSE:CDAY), Savaria Corp. (TSX:SIS), and Whitecap Resources…

Read more »

Dividend Stocks

Should You Buy Enbridge (TSX:ENB) Stock for the 6.8% Dividend Yield?

| Andrew Walker

Enbridge Inc. (TSX:ENB)(NYSE:ENB) offers an above-average yield and attractive upside potential. Is this the right time to buy the stock?

Read more »

Dividend Stocks

Is This 8% Yield in the Energy Patch Safe?

| Matt Smith

Whitecap Resources Inc.'s (TSX:WCP) dividend appears sustainable, making it an attractive stock to play higher oil.

Read more »

Dividend Stocks

Why Inter Pipeline (TSX:IPL) Might Be the Best Dividend Stock to Own Today

| David Jagielski

Inter Pipeline Ltd (TSX:IPL) can be a great stock for dividend investors to have in their portfolios as it can offer…

Read more »

Dividend Stocks

3 Growth Stocks With Tremendous Upside

| Christopher Liew, CFA

goeasy Ltd. (TSX:GSY), Kinaxis Inc. (TSX:KXS), and Keyera Corp. (TSX:KEY) are the top growth stocks today for investors looking for…

Read more »

Energy Stocks

1 Stock to Buy and Hold for the Next 30 Years

| Prosper Bakiny

Here is why Brookfield Infrastructure Partners LP (TSX:BIP.UN)(NYSE:BIP) is an excellent long-term stock pick.

Read more »

Dividend Stocks

Retire Rich: Add These Stocks to Become a Dividend Millionaire

| Kris Knutson

Getting retirement income from dividend stocks is easy, with yields on dividend all-stars like Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM)…

Read more »

Energy Stocks

TFSA Investors: Is Suncor Energy (TSX:SU) Stock Too Cheap to Ignore?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) just reported record Q2 results, yet the stock is well below its 52-week high. Time to…

Read more »

Dividend Stocks

A Top Dividend Stock for Your Buy-on-the-Dip Strategy

| Haris Anwar

Brookfield Infrastructure Partners LP (TSX:BIP.UN)(NYSE:BIP) is a top stock to buy on weakness. Here is why.

Read more »

Dividend Stocks

3 Excellent Reasons for Holding Enbridge (TSX:ENB) Stock

| Victoria Hetherington

Enbridge Inc. (TSX:ENB)(NYSE:ENB) beat expectations this month, but there are more reasons besides a solid Q2 to buy and hold.

Read more »

Dividend Stocks

Better Stock: AltaGas (TSX:ALA) or Baytex Energy (TSX:BTE)

| Andrew Button

AltaGas Ltd (TSX:ALA) has been on a wild ride this year, but could this beaten down energy stock be a…

Read more »

Dividend Stocks

3 Key Numbers From Enbridge’s (TSX:ENB) Q2 Results

| David Jagielski

Enbridge Inc (TSX:ENB)(NYSE:ENB) released what was another strong quarter for the company, but is it enough to make investors buy the…

Read more »

Dividend Stocks

2 Dividend Stocks With Rising Yields

| Joey Frenette

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and one other oil king to back up the truck on right now.

Read more »

Dividend Stocks

TFSA Investors: Pick Up This Top Dividend Stock While its Shares Are Down

| Prosper Bakiny

Here is why, despite its recent troubles, Enbridge Inc (TSX:ENB)(NYSE:ENB) is still worth investing in.

Read more »

Dividend Stocks

Is Vermilion’s (TSX:VET) Monster 12% Yield in the Oil Patch Safe?

| Matt Smith

Vermilion Energy Inc.'s (TSX:VET)(NYSE:VET) double digit 12% dividend yield appears safe for now.

Read more »

Dividend Stocks

TFSA Investors: Build a “Mini Pension” With These 3 High-Yield Dividend Stocks

| Andrew Button

With high-yield stocks like Genworth MI Canada (TSX:MIC), you can build a second income in the form of dividends.

Read more »

Energy Stocks

Canada’s Best Oil Stock Delivers a Solid 2nd Quarter 2019

| Matt Smith

Parex Rexources Inc. (TSX:PXT) is attractively valued and the best way to play the next oil rally.

Read more »

close-up photo of investor Warren Buffett
Energy Stocks

Invest Like Warren Buffett Using His Value Principles

| Adam Othman

Warren Buffett has been so successful with his value-investing strategies. Suncor Energy Inc. (TSX:SU)(NYSE:SU) is one of his most profitable…

Read more »

Energy Stocks

A Close Look at the Fair Value of ATCO (TSX:ACO.X)

| Amy Legate-Wolfe

Analysts price ATCO Ltd. (TSX:ACO.X) at around $55 per share, but is that fair?

Read more »

Energy Stocks

3 New Stocks Hitting 52-Week Lows

| Amy Legate-Wolfe

While stocks hitting 52-week lows come with risk, there are a lot of potential rewards for shareholders of Cameco Corp. (TSX:CCO)(NYSE:CCJ)…

Read more »

Dividend Stocks

Latest Results Confirm Enbridge (TSX:ENB) Is a Stock Every Investor Should Own

| Matt Smith

Enbridge Inc. (TSX:ENB)(NYSE:ENB) delivered solid second-quarter 2019 results, making now the time to buy.

Read more »

Dividend Stocks

3 Must-Have Defensive Stocks to Help Save You from a Market Crash

| Jason Phillips

With markets selling off sharply, three dividend stocks will help you weather any storm, including Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP),…

Read more »

Dividend Stocks

TFSA Investors: It’s Finally Time to Buy This Rock-Solid 4.4% Yielder

| Nelson Smith

It's finally time to start getting bullish on Canada's finest integrated energy company, Suncor Energy Inc. (TSX:SU)(NYSE:SU).

Read more »

Dividend Stocks

Are These 3 Succulent Energy Dividends Safe?

| Nelson Smith

Can Vermilion Energy Inc. (TSX:VET)(NYSE:VET), Whitecap Resources Inc. (TSX:WCP) and Husky Energy Inc. (TSX:HSE) all maintain their generous dividends?

Read more »

Dividend Stocks

TFSA Investors: Turn the TFSA into Your Cash Machine With These Proven Dividend-Growth Stocks

| Kay Ng

Build a $100,000 TFSA portfolio safely and get rising dividend income from Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) and another stock.

Read more »

Energy Stocks

Why Encana (TSX:ECA) Stock Is So Cheap — and Why That’s About to Change

| Karen Thomas, MSc, CFA

Encana Corp. (TSX:ECA) (NYSE:ECA) is finally delivering on driving returns and profitability higher, which should in turn drive the stock…

Read more »

Energy Stocks

$7-and-Under Bargain Stocks to Buy Today

| Christopher Liew, CFA

If you’re shopping for stocks at bargain prices, include BELLUS Health Inc. (TSX:BLU), Encana Corp. (TSX:ECA)(NYSE:ECA), and International Petroleum Corp…

Read more »

Dividend Stocks

Retirees: This Passive-Income Stream of $10,250/Year Is Real and it Grows

| Brian Pacampara, CFA

This group of dividend-growth streakers, including Enbridge Inc. (TSX:ENB)(NYSE:ENB), can help build your wealth the prudent way.

Read more »