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

Energy Stocks

Cameco Corp. (TSX:CCO) Stock Trading +24% Higher: Can the Rally Sustain?

| Brian Paradza, CFA

Cameco Corp. (TSX:CCO)(NYSE:CCJ) stock is outperforming today, but the odds of holding on to gains seem low.

Read more »

Energy Stocks

Should You Buy Husky Energy Inc. (TSX:HSE) or Imperial Oil Limited (TSX:IMO)?

| Andrew Walker

Husky Energy (TSX:HSE) and Imperial Oil (TSX:IMO) recently gave investors big dividend hikes. Is one a better long-term bet today?

Read more »

Energy Stocks

Now Is the Time to Buy This Oil Sands Stock

| Matt Smith

Pengrowth Energy Corp.'s (TSX:PGF) latest results confirm that it an attractive play on higher oil.

Read more »

Energy Stocks

What to Expect From Oil for the Remainder of 2018

| Matt Smith

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) will experience further earnings growth, even if oil remains flat…

Read more »

Dividend Stocks

Is 1 of the Best Energy Stocks for Dividends on Sale?

| Kay Ng

Vermilion Energy Inc. (TSX:VET)(NYSE:VET) has sustained its big dividend since 2003. Is it time to buy the energy stock on…

Read more »

The Motley Fool
Dividend Stocks

2 Top Dividend Stocks You Could Hold for the Next 30 Years

| Haris Anwar

Fortis Inc. (TSX:FTS)(NYSE:FTS) is one of the two top dividend stocks that you could hold in your retirement portfolio to…

Read more »

Dividend Stocks

Here’s a Little Stock That Can Beat Enbridge Inc. (TSX:ENB)

| Kay Ng

If you want superior returns, Enbridge Inc. (TSX:ENB)(NYSE:ENB) is probably not the best idea. Here’s a higher-growth company that you…

Read more »

Dividend Stocks

Don’t Miss This Opportunity to Buy North America’s Top Energy Infrastructure Stock

| Matt Smith

Enbridge Inc.'s (TSX:ENB)(NYSE:ENB) solid second quarter 2018 results indicates that the company is unlocking considerable value for investors.

Read more »

Dividend Stocks

Young RRSP Investors: Should You Buy Royal Bank of Canada (TSX:RY) Stock Today?

| Andrew Walker

Royal Bank of Canada (TSX:RY) (NYSE:RY) is one of Canada's top companies. Does it deserve to hold an anchor position…

Read more »

Dividend Stocks

2 Top Dividend Stocks to Buy for Your TFSA This Summer

| Karen Thomas, MSc, CFA

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and AltaGas Ltd. (TSX:ALA) dividend yields are 5.6% and 8.55%, respectively. Consider adding them to your TFSA!

Read more »

think, plan, and act to work towards your financial goals
Energy Stocks

Will Trump’s Trade Policies Trigger the Next Oil Price Collapse?

| Matt Smith

An emerging trade conflict will cap the upside for oil, but it shouldn't prevent investors from boosting exposure to quality…

Read more »

Dividend Stocks

Should Investors Buy Growth or Dividend Stocks for Energy Exposure?

| Karen Thomas, MSc, CFA

As oil holds at almost $70, now is the time to buy Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) and these two dividend-paying…

Read more »

The Motley Fool
Energy Stocks

Should Cenovus Energy Inc. (TSX:CVE) Stock Be in Your Portfolio Right Now?

| Andrew Walker

Cenovus Energy Inc. (TSX:CVE) (NYSE:CVE) might be on the verge of a rebound. Here's why.

Read more »

win
Energy Stocks

It’s Only August 1st and 1 of Our Top Dividend Stocks for the Month Has Already Rocketed 53% — Could There Be More on the Way?

| Brian Pacampara, CFA

Enercare Inc. (TSX:ECI) just soared 52.6%. Here's what happened.

Read more »

Dividend Stocks

Strengthen Your Core Portfolio With These 5 TSX-Listed Companies

| Kris Knutson

Stocks with solid earnings and consistent dividend profiles such as Canadian National Railway (TSX:CNR)(NYSE:CNI) should be core additions to your…

Read more »

The Motley Fool
Energy Stocks

Is This Oil Sands Company an Undervalued Bargain?

| Andrew Button

Energy stocks like MEG Energy Corp (TSX:MEG) are seeing strong returns driven by the rising price of oil.

Read more »

The Motley Fool
Dividend Stocks

3 Top Energy Stocks to Buy This Summer

| Karen Thomas, MSc, CFA

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) has emerged a financially stronger and more diversified company, and Pason Systems Inc. (TSX:PSI) has a…

Read more »

Energy Stocks

Get Ready for Canada’s Heavy-Oil Crisis to Worsen

| Matt Smith

Growing oil sands production from energy majors such as Imperial Oil Ltd. (TSX:IMO)(NYSE:IMO) and Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) will weigh…

Read more »

Energy Stocks

Latest Results Indicate This Energy Major Is Among the Best Ways to Play Higher Oil

| Matt Smith

Integrated energy major Husky Energy Inc. (TSX:HSE) is poised to unlock further value as oil appreciates.

Read more »

Energy Stocks

Which Company Has the Highest Expected Growth Rate on the TSX?

| Mat Litalien, MBA

Parex Resources Inc. (TSX:PXT) has an impressive growth profile and provides exceptional value at current prices.

Read more »

Dividend Stocks

5 Top Dividend Stocks to Buy in August

| Stephanie Bedard-Chateauneuf, MBA

Emera Inc. (TSX:EMA) and Enercare Inc. (TSX:ECI) are among the five dividend stocks I suggest you buy in August.

Read more »

Dividend Stocks

2 Beaten-Down Energy Stocks: Will They Recover This Year?

| Brian Paradza, CFA

This 8.6%-yielding drilling giant could outperform, and the latest Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) stock deal entices.

Read more »

utility power supply
Energy Stocks

Should You Invest in Hydro One Ltd. (TSX:H)?

| Demetris Afxentiou

Despite the ousting of the CEO and board by the Ontario government, Hydro One Ltd. (TSX:H) remains an intriguing long-term…

Read more »

The Motley Fool
Dividend Stocks

Should You Buy Enbridge Inc. (TSX:ENB) or Suncor Energy Inc. (TSX:SU) for Your TFSA Dividend Portfolio?

| Andrew Walker

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) gave investors big dividend raises in 2018. Should one be on your…

Read more »

The Motley Fool
Energy Stocks

Is This Oil Sands Stock the Best Way to Play Higher Oil?

| Matt Smith

MEG Energy Corp. (TSX:MEG) is well positioned to benefit from higher oil.

Read more »

Energy Stocks

Even After Oil’s Latest Rally, Cenovus Energy Inc. (TSX:CVE) Is an Unattractive Investment

| Matt Smith

There are more attractive alternatives to cash in on higher oil than Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE).

Read more »

Dividend Stocks

2 Energy Stocks to Buy to Earn Growing Dividends

| Haris Anwar

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) are two reliable stocks from the Canadian energy space. Let’s find out…

Read more »

The Motley Fool
Energy Stocks

What to Expect From This Oil Sands Stock Over the Remainder of 2018

| Matt Smith

Heavily leveraged Pengrowth Energy Corp. (TSX:PGF) is poised to soar should higher oil remain in play for a sustained period.

Read more »

Dividend Stocks

This Is Why Cenovus Energy Inc. (TSX:CVE) Stock Is Up 42% in the Last 5 Months

| Jason Phillips

Shares in Cenovus Energy Inc (TSX:CVE)(NYSE:CVE) are up 42% in the last 5 months since the beginning of March. Is…

Read more »

Dividend Stocks

High Arctic Energy Services Inc. (TSX:HWO): 1 Value Stock With a Big Dividend Worth Looking at

| Kris Knutson

High Arctic Energy Services Inc. (TSX:HWO) is a value stock in the energy sector that has a solid balance sheet,…

Read more »

Dividend Stocks

These 2 Stocks Can See Big Gains (or Losses) This Week

| Mat Litalien, MBA

Shopify Inc. (TSX:SHOP)(NYSE:SHOP) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) are two of the most anticipated quarterly results of the current earnings season.

Read more »

Dividend Stocks

Red Sea Woes Could Put Oil Stocks Back in the Black

| Victoria Hetherington

The closure of Red Sea oil routes could see stocks like Parex Resources Inc. (TSX:PXT) surge on higher oil prices…

Read more »

Energy Stocks

Stash This Renewable Energy Stock Yielding 5% in Your TFSA

| Ambrose O'Callaghan

Investors looking to green-energy should consider adding Innergex Renewable Energy Inc. (TSX:INE) this summer.

Read more »

The Motley Fool
Dividend Stocks

Why Enbridge Inc. (TSX:ENB) Stock Is up 9% This Month

| Jason Phillips

The price of Enbridge Inc. (TSX:ENB)(NYSE:ENB) has risen 9% over the past month and 20% since April 25. Is the…

Read more »

electric power transmission
Energy Stocks

Which Utility Heavyweight Is Better to Invest Your Money Into?

| Demetris Afxentiou

Fortis Inc. (TSX:FTS)(NYSE:FTS) and Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) are two great utilities for long-term investors, but which of…

Read more »

Dividend Stocks

This Oil Company Just Raised its Dividend 67%

| Andrew Walker

Husky Energy Inc. (TSX:HSE) is generating significant free cash flow and investors are reaping the rewards.

Read more »

Energy Stocks

Cenovus Energy Inc. (TSX:CVE) in the Red for Q2 Despite Strong Sales Growth

| David Jagielski

Cenovus Energy Inc (TSX:CVE)(NYSE:CVE) had a great showing in its top line, but that unfortunately didn't translate into a strong bottom…

Read more »

Dividend Stocks

2 Top Dividend Stocks to Buy for Your TFSA This Summer

| Haris Anwar

Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) is one of the top dividends stocks that could help create TFSA wealth.

Read more »

Dividend Stocks

AltaGas Ltd. (TSX:ALA) and These 2 Energy Stocks Are Must-Own Stocks for the 2nd Half of 2018

| Karen Thomas, MSc, CFA

We can expect AltaGas Ltd. (TSX:ALA), Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE), and Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) to see their stock prices…

Read more »

Dividend Stocks

2 Dividend-Growth Stocks to Fuel Your TFSA Retirement Fund

| Andrew Walker

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) and another top Canadian energy company are generating significant cash flow for investors.

Read more »