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

The Motley Fool
Energy Stocks

Is This Oil Sands Stock Vulnerable Because of Oil’s Latest Pullback?

| Matt Smith

Latest results indicate that Pengrowth Energy Corp.'s (TSX:PGF) operational performance continues to improve.

Read more »

Dividend Stocks

This Energy Stock Popped 15% Yesterday, With More Upside to Come

| Karen Thomas, MSc, CFA

Pason Systems Inc. (TSX:PSI) stock rallied 15% after an exceptionally strong third quarter and a strong outlook.

Read more »

Dividend Stocks

Latest Results Confirm This Oil Stock Is a Buy

| Matt Smith

Surge Energy Inc. (TSX:SGY) will soar when oil recovers.

Read more »

Dividend Stocks

Get Big Dividends and Decent Growth Too

| Kay Ng

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and another stock offer dividend yields of about 6%. Which one will you buy?

Read more »

The Motley Fool
Dividend Stocks

2 Excellent Utility Companies With 7% Yields

| Kris Knutson

If you are looking to add some big, steadily growing income to your portfolio, take a look at beaten-up utility…

Read more »

Dividend Stocks

This Dividend Payer Is a Bargain on This Dip

| Kay Ng

This is a great opportunity to buy Keyera Corp. (TSX:KEY) for a 5.7% yield and at a bargain.

Read more »

Dividend Stocks

Look Here for Stable, Recurring Income and Growth Prospects

| Demetris Afxentiou

Fortis Inc. (TSX:FTS)(NYSE:FTS) may not be the most aggressive stock on the market for growth-minded investors, but given the increasing…

Read more »

Energy Stocks

1 Top Oil Stock for Every Portfolio

| Matt Smith

Latest results indicate that Parex Resources Inc. (TSX:PXT) is poised to unlock further value for investors.

Read more »

Energy Stocks

Don’t Expect $100 Oil Anytime Soon

| Matt Smith

Even if oil remains flat, Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) and Gran Tierra Energy Inc. (TSX:GTE)(NYSE:GTE) are attractive investments.

Read more »

Dividend Stocks

These 3 Natural Gas Stocks Will Soar on Chinese Demand

| Chris MacDonald

Why those looking for natural gas companies should consider Encana Corp. (TSX:ECA)(NYSE:ECA), Peyto Exploration and Development Corp. (TSX:PEY), and Altagas Ltd. (TSX:ALA).

Read more »

Energy Stocks

Should Suncor Energy Inc. (TSX:SU) or Fortis Inc (TSX:FTS) Stock Be in Your RRSP?

| Andrew Walker

Fortis Inc. (TSX:FTS)(NYSE:FTS) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) are popular Canadian stocks. Is one a better RRSP bet today?

Read more »

Dividend Stocks

This Canadian Value Play Is Having a 30% Off Sale: Buy Now!

| Chris MacDonald

Why Parex Resources Inc. (TSX:PXT) should be in every value investor's portfolio.

Read more »

Dividend Stocks

2 Bargain High-Yield Canadian Energy Stocks for Your TFSA

| Karen Thomas, MSc, CFA

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Freehold Royalties Ltd. (TSX:FRU) are great buys today, giving TFSA investors reliable high yields of…

Read more »

Dividend Stocks

Lock In a 5% Yield by Buying Pembina Pipeline Corp. (TSX:PPL)

| Matt Smith

Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) is an attractive dividend-paying play on higher oil.

Read more »

Dividend Stocks

2 TSX Index Stock That Look Cheap and Could Surge in 2019

| Andrew Walker

Royal Bank of Canada (TSX:RY)(NYSE:RY) and another top TSX Index stock look attractive today.

Read more »

The Motley Fool
Dividend Stocks

Dividend Investors: Collect Steady Income Payments While You Wait for This Top “Black Gold” King to Take Off

| Joey Frenette

Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ) is an oil sands king with a fat dividend and ample long-term upside potential. Why…

Read more »

The Motley Fool
Energy Stocks

Canada’s Heavy Oil Crisis Worsens

| Matt Smith

The deep discount applied to Canadian heavy oil will impact Athabasca Oil Corp.'s (TSX:ATH) second-half 2018 performance.

Read more »

The Motley Fool
Energy Stocks

Has the Next Oil Price Collapse Begun?

| Matt Smith

Expect oil to rebound, which will give Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) a lift.

Read more »

Dividend Stocks

What Will You Do With AltaGas Ltd. (TSX:ALA) Stock?

| Kay Ng

Why has AltaGas Ltd. (TSX:ALA) stock fallen so much?

Read more »

growing dividends
Dividend Stocks

3 Top Growth Stocks to Buy in November

| Stephanie Bedard-Chateauneuf, MBA

MEG Energy Corp. (TSX:MEG) is one of the three growth stocks that I suggest you buy this month.

Read more »

The Motley Fool
Dividend Stocks

2 Top Stocks to Hold for 30 Years in Your TFSA

| Andrew Walker

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and another top Canadian dividend stock deserve to be on your radar. Here's why.

Read more »

Dividend Stocks

Yield Hogs: These Are Canada’s 5 Biggest Dividends

| Nelson Smith

Can high-yield stocks like AltaGas Ltd. (TSX:ALA), TransAlta Renewables Inc. (TSX:RNW), and Inter Pipeline Ltd. (TSX:IPL) maintain their massive payouts?

Read more »

Dividend Stocks

1 Top High-Yield, Cheap Energy Stock to Buy in November

| Neha Chamaria

Enbridge Inc.’s (TSX:ENB)(NYSE:ENB) latest earnings, growth efforts, and hefty dividend yield make it an intriguing energy stock to watch.

Read more »

solar panels
Dividend Stocks

High-Yield Renewable Energy Stock Battle Royale: Who Wins?

| Kay Ng

Should you buy Northland Power Inc. (TSX:NPI) or its two other peers for income and total returns?

Read more »

Energy Stocks

2 Highly Volatile Clean Energy Stocks for Big Upside Potential

| Karen Thomas, MSc, CFA

Ballard Power Systems Inc. (TSX:BLDP)(NASDAQ:BLDP) disappoints again as revenue declines and losses accelerate. But is the long-term thesis intact?

Read more »

oil, petroleum, refinery
Energy Stocks

Revealed: 5 Dirt-Cheap Oil Stocks Trading Under $5

| Nelson Smith

Cheap oil stocks like Baytex Energy Corp (TSX:BTE)(NYSE:BTE), Birchcliff Energy Ltd. (TSX:BIR), and Athabasca Oil Corp (TSX:ATH) could provide massive…

Read more »

Dividend Stocks

3 Takeaways From Enbridge Inc’s (TSX:ENB) Q3 Results

| David Jagielski

Enbridge Inc (TSX:ENB)(NYSE:ENB) showed strong growth in Q3, but is it enough to make investors bullish on the stock?

Read more »

Dividend Stocks

Buy These 3 Dividend Stocks Today

| Kris Knutson

Sometimes the market offers you a gift. Right now, excellent incomes stocks like BCE Inc. (TSX:BCE)(NYSE:BCE) are trading at low…

Read more »

Dividend Stocks

Dividend Stocks for a Quality Portfolio Today

| Kay Ng

Outperform with TransCanada Corp. (TSX:TRP)(NYSE:TRP) and other quality stocks that are great values for your buck right now!

Read more »

The Motley Fool
Energy Stocks

Latest Results Confirm it Is Time to Buy This Driller to Play Higher Oil

| Matt Smith

Get ready for Gran Tierra Energy Inc. (TSX:GTE)(NYSE:GTE) to soar when oil recovers.

Read more »

Dividend Stocks

2 Best-in-Class Canadian Energy Stocks for Your TFSA

| Karen Thomas, MSc, CFA

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Enerplus Corp. (TSX:ERF)(NYSE:ERF) are two high-quality energy stocks trading at attractive valuations.

Read more »

Dividend Stocks

Why Dividend Stocks Win in a Downturn

| Kay Ng

Vermilion Energy Inc. (TSX:VET)(NYSE:VET) offers an 8% return from dividend income compared to its peer that offers none.

Read more »

Energy Stocks

TFSA Investors: 2 Safe Dividend Stocks Yielding Up to 4.8%

| David Jagielski

Hydro One Ltd (TSX:H) and this other dividend stock haven't put investors on a roller coaster ride the way the TSX…

Read more »

Dividend Stocks

2 High-Yield Dividend Stocks, but Which One Is Safe?

| Haris Anwar

North America’s largest pipeline operator, Enbridge Inc. (TSX:ENB)(NYSE:ENB) is one of the two high-yielding dividend stocks. But is it safe…

Read more »

Energy Stocks

TFSA Investors: 3 TSX Index Stocks That Could Rally Through the End of 2018

| Andrew Walker

Barrick Gold Corp. (TSX:ABX)(NYSE:ABX) is one of a handful of TSX Index industry leaders that could take off in 2019.

Read more »

Dividend Stocks

Enbridge’s (TSX:ENB) Stock Is Gaining Momentum and Offers Significant Upside

| Mat Litalien, MBA

Enbridge Inc's (TSX:ENB)(NYSE:ENB) stock offers plenty of upside. A high starting yield and a growing dividend also make it a…

Read more »

Dividend Stocks

3 Oil And Gas Monthly Dividend Payers With Significant Upside

| Kris Knutson

If you want big returns in the oil and gas sector, try investing in monthly dividend-payers like Interpipeline Corp. (TSX:IPL)…

Read more »

Dividend Stocks

Investors, Act Now: Canadian Energy Stocks Are at an Inflection Point

| Karen Thomas, MSc, CFA

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is a great long-term buy, as the company continues to address and resolve its problems, and…

Read more »

Dividend Stocks

2 Great Green Energy Stocks for Dividend Investors

| Victoria Hetherington

Green energy stocks like Northland Power Inc. (TSX:NPI) are paying big dividends and have growth ahead of them too –…

Read more »

Energy Stocks

3 Amazing Gravity-Defying Stocks to Buy Right Now

| Brian Pacampara, CFA

Market turbulence is back. But this trio of stocks, including Barrick Gold (TSX:ABX)(NYSE:ABX), is moving against the downturn.

Read more »