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

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, January 30

| Jitendra Parashar

The U.S. consumer confidence and job openings data will remain on TSX investors’ radar today, ahead of the Fed’s monetary…

Read more »

Energy Stocks

Here’s Why Fortis is a No-Brainer Dividend Stock

| Karen Thomas, MSc, CFA

Fortis has the benefit of a predictable and reliable business model, both of which makes the stock an ideal dividend…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Here’s My Top Value Stock to Buy Right Now

| Brian Paradza, CFA

Here’s why I’d buy Parex Resources stock today for a 6.5% dividend yield, and more upside.

Read more »

Energy Stocks

2 Cheap Energy Stocks to Buy in February 2024

| Aditya Raghunath

Undervalued TSX energy stocks such as Whitecap Resources are trading at discounts to analyst price estimates right now.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Buy This Top Renewable Energy Stock to Grow Your Wealth

| Adam Othman

Northland Power (TSX:NPI) stock can be an excellent addition to your self-directed portfolio if you want a major winner in…

Read more »

oil and gas pipeline
Energy Stocks

Up by 12%: Is it Too Late to Buy Enbridge Stock?

| Adam Othman

Discounts, especially when they have the potential to beef up your yield, are worth chasing. But the absence of that…

Read more »

oil and natural gas
Energy Stocks

Avoid This Energy Stock (for Now) and Consider This Top Stock Up 21% Instead

| Amy Legate-Wolfe

Parkland stock (TSX:PKI) is at a crossroads that you may want to avoid, and instead consider this top stock that…

Read more »

canadian energy oil
Energy Stocks

The Ultimate Growth Stock to Buy With $5,000 Right Now

| Chris MacDonald

For investors looking for a top growth stock to add to a $5,000 portfolio as a core holding, the options…

Read more »

clock time
Energy Stocks

If You Invested $1,000 in Fortis Stock in 2014, This Is How Much You Would Have Today

| Brian Paradza, CFA

Here’s why you should consider Fortis stock and other utilities when building a retirement portfolio.

Read more »

data analyze research
Energy Stocks

1 Dividend Stock Down 67% to Buy Right Now

| Aditya Raghunath

Down 67% from all-time highs, Enerflex stock trades at a massive discount to consensus price target estimates.

Read more »

Utility, wind power
Energy Stocks

3 Reasons to Buy Brookfield Renewable Partners Stock Like There’s No Tomorrow

| Amy Legate-Wolfe

Looking to get into renewable energy? This undervalued stock provides an opportunity.

Read more »

Energy Stocks

Down by 14.2%: Is Enbridge Stock a Good Buy for Income Investors in January 2024?

| Adam Othman

Trading at a significant discount despite having a solid underlying business and healthy growth prospects, Enbridge stock can be an…

Read more »

Energy Stocks

Will Enbridge Stock Be Worth More Than Tesla by 2026?

| Karen Thomas, MSc, CFA

With Tesla facing big competition and Enbridge expected to steadily grow, it seems like Enbridge stock will be fast approaching…

Read more »

Energy Stocks

Forget Enbridge Stock: This Stock Is Poised for a Potential Bull Run in 2024

| Amy Legate-Wolfe

Enbridge (TSX:ENB) stock has seen major growth in the last few decades, but that's looking like it will slow down…

Read more »

oil and gas pipeline
Energy Stocks

Is Enbridge Stock a Buy Now?

| Rajiv Nanjapla

Given its solid underlying business, healthy growth prospects, attractive dividend yield, and cheaper valuation, Enbridge would be an excellent buy…

Read more »

Energy Stocks

3 Things About Canadian Utilities Stock Every Smart Investor Knows

| Amy Legate-Wolfe

Canadian Utilities stock (TSX:CU) has dropped significantly, and that could continue in 2024. But does that make it a great…

Read more »

Energy Stocks

3 Energy Stocks Already Worth Your While

| Amy Legate-Wolfe

These energy stocks are certainly worth your consideration on the TSX today, providing dividends and major growth for 2024.

Read more »

Energy Stocks

Should You Buy Athabasca Oil While it’s Below $5?

| Christopher Liew, CFA

A mid-cap energy stock with enormous gains in the last two years and trading below $5 remains a buying opportunity…

Read more »

Energy Stocks

5 Reasons to Buy Canadian Utilities Stock Like There’s No Tomorrow

| Amy Legate-Wolfe

Shares are valuable, the dividend is high, and growth is on the way for Canadian Utilities (TSX:CU) stock on the…

Read more »

Energy Stocks

3 Reasons to Buy Enbridge Stock Like There’s No Tomorrow

| Demetris Afxentiou

Are you looking for a great stock that can provide growth and income for decades? Investors may want to buy…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Friday, January 12

| Jitendra Parashar

The U.S. wholesale inflation data will be the key focus of TSX investors today.

Read more »

Energy Stocks

3 Dividend Stocks to Buy No Matter What 2024 Brings

| Amy Legate-Wolfe

These dividend stocks are a strong buy in the next year, and even stronger beyond that. All while continually collecting…

Read more »

Energy Stocks

If You Had Invested $5,000 in Enbridge Stock in 2018, This Is How Much You Would Have Today

| Amy Legate-Wolfe

Enbridge stock (TSX:ENB) has a long history of dividend increases, but what about returns? There, the stock tends to fall…

Read more »

Energy Stocks

Is it Now Too Late to Buy Enbridge Stock?

| Andrew Walker

Enbridge rallied through Q4 last year. Are more gains on the way for ENB stock?

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, January 9

| Jitendra Parashar

The main TSX index just reached its highest closing level in more than 20 months.

Read more »

Energy Stocks

Here’s Why Canadian Utilities Is a No-Brainer Dividend Stock

| Chris MacDonald

Canadian Utilities (TSX:CU) is among the leading dividend growth stocks long-term investors may want to consider on dips moving forward.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, January 8

| Jitendra Parashar

Weakening crude oil, natural gas, and metals prices could weigh on commodity-linked TSX stocks at the open today.

Read more »

Energy Stocks

This Canadian Energy Stock Is Making Moves to Totally Eclipse its Peers

| Adam Othman

TC Energy stock has had some interesting developments that might see it soar past its competition on the stock market…

Read more »

Energy Stocks

Forget Suncor: This Growth Stock Is Poised for a Potential Bull Run

| Puja Tayal

Suncor Energy’s stock price growth has peaked. It is time to book profits from Suncor and invest in a stock…

Read more »

Energy Stocks

Where Will Enbridge Stock Be in 10 Years?

| Andrew Button

Enbridge Inc (TSX:ENB) stock has a high dividend yield, but can the company afford to keep the dividends coming?

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

3 Energy Stocks to Buy Hand Over Fist in January

| Adam Othman

With 2024 starting on a positive momentum for stock market investing, these three TSX energy stocks are excellent buys right…

Read more »

Energy Stocks

Could This Low-Performing Stock Make You a Millionaire One Day?

| Amy Legate-Wolfe

Brookfield Renewable stock (TSX:BEP.UN) looks like a strong choice for future growth, but how long will investors have to wait?

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, January 4

| Jitendra Parashar

Early morning gains in crude oil and a rebound in metals prices could lift the commodity-heavy TSX index at the…

Read more »

Caution, careful
Energy Stocks

Warning: This Skyrocketing Stock Has a Hidden Risk

| Andrew Button

SNC Lavalin (TSX:ATRL) stock is roaring higher, but the company faces political risks.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, January 2

| Jitendra Parashar

Overnight gains in commodity prices could help the main TSX index open on a bullish note on the first trading…

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

1 Renewable Energy Stock That Could Have You Rolling in Green

| Amy Legate-Wolfe

Northland (TSX:NPI) stock could be a major winner in the next year, especially with the company getting back to normal…

Read more »

Energy Stocks

TFSA Investors: The Best Energy Stocks for Fast-Growing Dividends

| Rajiv Nanjapla

Given their excellent record of dividend growth and solid underlying businesses, these two energy stocks are a perfect addition to…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Friday, December 29

| Jitendra Parashar

With its 8% year-to-date gains, the main TSX index remains on track to end 2023 in the green territory.

Read more »

Energy Stocks

The TFSA Change in 2024 That Will Make You Richer

| Christopher Liew, CFA

The increased size of the TFSA contribution limit in 2024 is an opportunity to become richer and build a fortune…

Read more »

Energy Stocks

Should You Buy Enbridge Stock for its 7.65% Yield?

| Demetris Afxentiou

One of the main reasons investors love Enbridge (TSX:ENB) is for its dividend. But should you buy Enbridge stock just…

Read more »