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

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

3 Things About Brookfield Renewable Partners Every Smart Investor Knows

| Amy Legate-Wolfe

BEP (TSX:BEP.UN) stock looks like a strong option when it comes to future growth, but right now there are still…

Read more »

Energy Stocks

Where to Invest $10,000 in a Bullish Market

| Joey Frenette

Fortis (TSX:FTS) stock is a dividend play not to sleep on going into the forefront of the new bull market.

Read more »

Energy Stocks

Is TC Energy Stock Finally a Buy in 2024?

| Jitendra Parashar

TC Energy’s consistent focus on expansion and maximizing asset value makes it a really attractive stock to buy in 2024.

Read more »

Car, EV, electric vehicle
Energy Stocks

EVs vs. Battery Metal: What’s A Better Buy in 2024?

| Adam Othman

Take a closer look at these EV and battery metal TSX stocks to identify the better holding for your self-directed…

Read more »

Energy Stocks

Get Paid $2,250 Every Year With Just $30,188 Invested in 2 Pipeline Giants

| Adam Othman

These two TSX energy pipeline stocks can be excellent holdings to consider for a dividend income portfolio for sizeable annual…

Read more »

Canadian Natural Resources 2023 earnings
Energy Stocks

Canadian Natural Resources Stock Hits a New High. So Is CNQ a Best Stock to Buy Now?

| Iain Butler

It's Canada's biggest energy company. We could argue it's Canada's best energy company.

Read more »

Energy Stocks

3 Things About Enbridge Stock Every Smart Investor Knows

| Amy Legate-Wolfe

Enbridge stock (TSX:ENB) continues to be one of the best dividend stocks out there, but with a payout ratio of…

Read more »

Energy Stocks

Buy Alert: 4 Reasons Why TC Energy Stock Is a Must-Own Now

| Christopher Liew, CFA

A large-cap energy stock is a strong buy today for four compelling reasons.

Read more »

Energy Stocks

Here’s Why Enbridge Stock Looks Like a Great Buy

| Adam Othman

Consider looking at Enbridge (TSX:ENB) if you seek high-yielding but safe dividends for your self-directed portfolio.

Read more »

oil and natural gas
Energy Stocks

3 Energy Stocks Already Worth Your While

| Brian Paradza, CFA

TSX energy stocks could shine for much longer. Here's why Canadian Natural Resources (TSX:CNQ), Parex Resources (TSX:PXT), and another oil…

Read more »

Utility, wind power
Energy Stocks

Brookfield Renewable Partners Stock: Buy, Sell, or Hold?

| Amy Legate-Wolfe

BEP stock (TSX:BEP.UN) now trades at half its share price back in 2021. So what should investors do with this…

Read more »

Technology
Energy Stocks

2 No-Brainer Energy Stocks to Buy With $5000 Right Now

| Karen Thomas, MSc, CFA

Cenovus Energy is one of two high quality energy stocks that are undervalued and well-positioned for long-term success.

Read more »

Energy Stocks

Here’s Why Enbridge Is a No-Brainer Dividend Stock

| Daniel Da Costa

Enbridge stock has resilient operations, significant competitive advantages and a safe payout ratio, making it a top dividend stock.

Read more »

Energy Stocks

Buy 849 Shares of This Super Dividend Stock for $3,100/Year in Passive Income

| Demetris Afxentiou

Looking for a super dividend stock to buy now? Here's a discounted top pick that can provide an ample income…

Read more »

Energy Stocks

Suncor Stock: A Millionaire Maker?

| Karen Thomas, MSc, CFA

With a renewed focus on extracting value from its integrated business, we can expect tremendous value creation from Suncor stock.

Read more »

Energy Stocks

Is Enerflex Stock a Good Buy Right Now?

| Aditya Raghunath

Enerflex stock is down 65% from all-time highs and trades at a compelling valuation right now.

Read more »

oil and gas pipeline
Energy Stocks

3 Reasons to Buy TC Energy Stock Like There’s No Tomorrow

| Amy Legate-Wolfe

TC stock (TSX:TRP) jumped as the company announced strong earnings as well as a dividend increase, but more could be…

Read more »

Dividend Stocks

Millionaire Makers: 2 Stocks That Could Help Turn $100,000 Into $1 Million

| Christopher Liew, CFA

Two TSX stocks with durable dividends can help turn $100,000 into $1 million over an extended period of time.

Read more »

Energy Stocks

Easing Oil Prices Reduce Cenovus Energy’s Q4 Earnings  

| Puja Tayal

Cenovus Energy’s fourth-quarter earnings show the effect of easing oil prices. The stock is down 17% from its high. Is…

Read more »

Energy Stocks

Suncor Stock Q4 Results Out Today: What to Expect

| Karen Thomas, MSc, CFA

Suncor Energy's fourth quarter results will likely benefit from record production and continued efficiency gains.

Read more »

Energy Stocks

Got $1,000? 2 Canadian Energy Stocks to Buy and Hold Forever

| Jitendra Parashar

These high-dividend-paying Canadian energy stocks can make your stock portfolio more stable.

Read more »

oil and gas pipeline
Energy Stocks

3 Reasons to Buy TC Energy Stock Hand Over Fist After its Q4 Earnings Event

| Jitendra Parashar

These top reasons make TRP stock worth considering after its fourth-quarter earnings event.

Read more »

Energy Stocks

Sweet Returns: 2 No-Brainer Oil & Gas E&P Stocks to Buy With $200 Right Now

| Christopher Liew, CFA

Two oil & gas E&P stocks are no-brainer buys for their strong fundamentals and high-growth potential.

Read more »

Energy Stocks

Better Buy: Suncor Stock vs. Exxon Mobil

| Aditya Raghunath

Oil giants such as Exxon Mobil and Suncor offer investors a tasty dividend yield today. But which energy stock is…

Read more »

Energy Stocks

Down 3.5%: Is Now the Right Time to Buy Enbridge Stock?

| Christopher Liew, CFA

A Canadian energy giant remains a first-choice investment right now, despite the weak start in 2024.

Read more »

Energy Stocks

New Study Shows 36% of Couples Hide Spending From Partner, And It’s a Pressure Point

| Amy Legate-Wolfe

Having the hard talk? It can literally pay to do so. Here's how to stop holding out on your partner…

Read more »

Energy Stocks

2 Energy Stocks to Buy Hand Over Fist in February

| Jitendra Parashar

Here are two of the best Canadian energy stocks you can buy in February 2024.

Read more »

Energy Stocks

2 Growth Stocks That Could Skyrocket in 2024

| Nicholas Dobroruka

Are you looking to add some growth to your investment portfolio this year? Here are two top growth stocks to…

Read more »

Utility, wind power
Energy Stocks

Is Brookfield Renewable Partners Stock a Buy Now?

| Sneha Nahata

Brookfield Renewable Partners continues to generate solid earnings, distribute higher dividends, and deliver above average capital gains.

Read more »

canadian energy oil
Energy Stocks

Better Energy Stock: SU or CNQ?

| Karen Thomas, MSc, CFA

Suncor stock is grossly undervalued, as the company makes headway to recover from operational and safety challenges that have plagued…

Read more »

Energy Stocks

How Long Would It Take to Turn $20,000 Into $100,000 With TSX Dividend Stocks?

| Puja Tayal

TSX dividend stocks can convert a one-time $20,000 investment into $100,000 if you make your dividends work for you. Let’s…

Read more »

Energy Stocks

Retirees: Is Enbridge (TSX:ENB) the Best Dividend Stock for You to Buy Now?

| Andrew Walker

Enbridge rallied in recent months. Are more gains on the way?

Read more »

Energy Stocks

3 Stocks That Could Make You Significantly Richer in 2024

| Christopher Liew, CFA

Three outperforming small-cap stocks could deliver outsized gains and make investors richer in 2024.

Read more »

dividends grow over time
Energy Stocks

If You Had Invested $5,000 in Enbridge Stock in 2004, This Is How Much You Would Have Today

| Aditya Raghunath

Enbridge stock has delivered outsized to shareholders in the last 20 years. But is this TSX dividend stock a good…

Read more »

Energy Stocks

Oil Shortage Is Coming, Experts Warn: One Stock to Buy Before a Production Crunch

| Amy Legate-Wolfe

Oil and gas stocks face a severe supply shortage as we continue to go through 20th century reserves. So what…

Read more »

Energy Stocks

2 Ultra High-Yield Energy Stocks to Buy Hand Over Fist and 1 to Avoid

| Adam Othman

Two energy stocks offer ultra-high-yielding dividends, but one might be better avoided as a holding in your self-directed investment portfolio.

Read more »

An engineer works at a hydroelectric power station, which creates renewable energy.
Energy Stocks

Better Buy in February 2024: Brookfield Renewable Partners Stock vs. TC Energy Stock

| Andrew Button

Brookfield Renewable Partners (TSX:BEP.UN) is a quality energy company. Could TD Energy (TSX:TRP) be even better?

Read more »

Energy Stocks

Could Enbridge Help You Become a Millionaire?

| Demetris Afxentiou

Want to generate a growing income on autopilot? Enbridge (TSX:ENB) offers that and more. In fact, it can help you…

Read more »

oil and gas pipeline
Energy Stocks

Better Buy: Enbridge Stock or TC Energy?

| Aditya Raghunath

High-dividend stocks such as Enbridge and TC Energy can help you generate a stable stream of passive income for life.

Read more »

Energy Stocks

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

| Karen Thomas, MSc, CFA

With a 7.75% dividend yield, strong cash flows, and a resilient business to back it up, Enbridge stock is looking…

Read more »