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

offshore wind generation
Dividend Stocks

Forget About Oil: 1 Renewable Energy Stock for Long-Term Income and Growth

| Matt Smith

After misfiring for years, Brookfield Renewable Partners L.P. (TSX:BEP.UN)(NYSE:BEP) is ready to soar and unlock considerable value for investors.

Read more »

stock market volatility
Dividend Stocks

Top Small-Cap Stocks to Snap Up Before They Gap Up

| Victoria Hetherington

Playing the gaps can lead to tidy profits -- or even unexpected long-term stock romances! Here’s why watching Encana Corp.…

Read more »

Dividend Stocks

Here’s Why Everyone Should Hold Canadian Oil Stocks

| Victoria Hetherington

When we say everybody, we mean everybody. Canada sits on vast reserves of oil, and stocks are currently undervalued. Buy…

Read more »

Dividend Stocks

Get +5% Yields From These 2 Dividend Growth Stocks

| Kay Ng

Get high income and price appreciation, too, from Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) and another quality stock.

Read more »

Dividend Stocks

Dividend Investors: Is it Time to Buy Inter Pipeline Ltd. or TransCanada Corporation?

| Andrew Walker

Inter Pipeline Ltd. (TSX:IPL) and TransCanada Corporation (TSX:TRP)(NYSE:TRP) are bouncing back. Is one a better bet today?

Read more »

telephone pole
Dividend Stocks

Fortis Inc.: A Top-Quality Canadian Dividend Stock to Start Your RRSP

| Andrew Walker

Here's why Fortis Inc. (TSX:FTS)(NYSE:FTS) should be on your RRSP radar.

Read more »

Dividend Stocks

Enbridge Inc. Stock: Why Is This Top Dividend Stock Rebounding?

| Haris Anwar

Here is why a rebound in Enbridge Inc. (TSX:ENB)(NYSE:ENB) stock may have already begun after a 30% slide in the…

Read more »

Dividend Stocks

2 Top Canadian Dividend Stocks to Start Your TFSA Retirement Plan

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Toronto-Dominion Bank (TSX:TD)(NYSE:TD) have generated impressive returns for buy-and-hold investors.

Read more »

Energy Stocks

Now Up by 50%, This Energy Stock Is Still One of the Best Ways to Play Higher Oil

| Matt Smith

Cash in on higher oil by investing in Baytex Energy Inc. (TSX:BTE)(NYSE:BTE).

Read more »

The Motley Fool
Dividend Stocks

Why TransAlta Renewables Is the High-Yield Dividend Stock You’ve Dreamed of

| Victoria Hetherington

TransAlta Renewables Inc. (TSX:RNW) is a hot stock to buy and hold right now. We compare it with one other…

Read more »

Dividend Stocks

Suncor Energy Inc. vs. Canadian National Railway: Which Dividend Stock Is a Better Buy?

| Haris Anwar

Both Canadian National Railway (TSX:CNR)(NYSE:CNI) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) are two dividend stocks which have histories of performing better…

Read more »

Dividend Stocks

This Utility Just Increased its Dividend by 10%

| Kay Ng

Should you buy Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) for a 5.1% yield? What is its upside potential?

Read more »

Dividend Stocks

Buy These 2 Dividend Stocks As Oil Soars

| Ambrose O'Callaghan

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Encana Corp. (TSX:ECA)(NYSE:ECA) stocks have thrived as oil prices rise.

Read more »

Dividend Stocks

Another Reason Investors Should Back Up the Truck on Suncor Energy Inc. Stock

| Chris MacDonald

Here is one deal you may not have heard about from Suncor Energy Inc. (TSX:SU)(NYSE:SU), which represents why Suncor is such…

Read more »

The Motley Fool
Dividend Stocks

Buy Canadian Tire and 1 Other Defensive Dividend Stock for a Solid Tag Team

| Victoria Hetherington

Canadian Tire Corporation Limited (TSX:CTC.A) is about to get handed a freebie. Here’s how pairing it with a utilities giant…

Read more »

Energy Stocks

Should You Buy the Rally in Baytex Energy Corp. or Cameco Corp.?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) and Cameco Corp. (TSX:CCO)(NYSE:CCJ) are trading at 12-month highs. Is this the right time to buy?

Read more »

The Motley Fool
Dividend Stocks

Here Is Why This Monthly Dividend Stock Is a Good TFSA Candidate

| Haris Anwar

Growing monthly dividends and a potential for capital gains make Enercare Inc. (TSX:ECI) a perfect stock for any TFSA.

Read more »

Dividend Stocks

3 Top Dividend Growth Stocks to Buy and Hold for Decades

| David Jagielski

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and these two other dividend stocks could generate significant cash flow for your portfolio for decades to…

Read more »

Dividend Stocks

3 Must-Own, High-Yield Energy Dividend Stocks With a High ROE

| Mat Litalien, MBA

Don't fall into the dividend yield trap. Enbridge Income Fund Holdings Inc. (TSX:ENF) is an example of a high-quality company…

Read more »

The Motley Fool
Energy Stocks

Is Painted Pony Energy Ltd. a Stock to Be Avoided?

| Matt Smith

Despite natural gas's prolonged slump, Painted Pony Energy Ltd. (TSX:PONY) is shaping up to be an appealing investment.

Read more »

Energy Stocks

Should You Sell in May and Go Away?

| Stephanie Bedard-Chateauneuf, MBA

Following the adage "sell in May and go away" is rarely profitable, particularly for defensive stocks like Lassonde Industries Inc.…

Read more »

Energy Stocks

Attention Dividend Investors! 2 Oil Pipelines to Buy Today

| Kris Knutson

Dividend stocks are ripe for the picking. Both Enbridge Inc. (TSX:ENB)(NYSE:ENB), with a 7% yield, and Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA)…

Read more »

The Motley Fool
Energy Stocks

Why Buying Fortis Stock Will Help You Weather a Stormy Equity Market

| Victoria Hetherington

Fortis Inc. (TSX:FTS)(NYSE:FTS) is a strong contender if you are looking for a dividend stock that will continue to pay…

Read more »

Dividend Stocks

TFSA Investors: Are Suncor Energy Inc. and Canadian National Railway Company Top Dividend Stocks?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Canadian National Railway Company (TSX:CNR)(NYSE:CNI) are not always the first stocks that come to mind…

Read more »

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

Is Enbridge Inc. or BCE Inc. a Better Dividend Stock for Your RRSP Today?

| Andrew Walker

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and BCE Inc. (TSX:BCE)(NYSE:BCE) are two of Canada's top dividend stocks. Is this the right time to…

Read more »

Dividend Stocks

Canada’s Best Dividend-Growth Stock to Take Advantage of Higher Oil

| Matt Smith

Cash in on higher oil prices and growing demand for energy infrastructure by investing in Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA).

Read more »

Dividend Stocks

Understanding the Takeaways from Cenovus Inc.’s Q1 Earnings Report

| Jason Phillips

Cenovus Energy Inc (TSX:CVE)(NYSE:CVE) shares are 12.4% higher since its latest earnings report, which is surprising because on the surface…

Read more »

Dividend Stocks

This Oil Stock Just Increased its Dividend by 10%

| Kay Ng

TORC Oil and Gas Ltd. (TSX:TOG) is a good stock to buy to get exposure to higher oil prices.

Read more »

Dividend Stocks

Is it Time to Buy TransCanada Corporation or Crescent Point Energy Corp.?

| Andrew Walker

TransCanada Corporation (TSX:TRP)(NYSE:TRP) and Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) might be interesting contrarian picks today. Here's why.

Read more »

The Motley Fool
Energy Stocks

1 Oil Sands Giant That’s Poised to Soar

| Matt Smith

Integrated energy major Suncor Energy Inc. (TSX:SU)(NYSE:SU) will soar higher as oil prices rally further.

Read more »

pipeline
Energy Stocks

Why TransCanada Corporation Is a Great Investment

| Demetris Afxentiou

TransCanada Corporation (TSX:TRP)(NYSE:TRP) has massive appeal for long-term investors looking for a source of recurring income as well as a…

Read more »

The Motley Fool
Dividend Stocks

PM Justin Trudeau Is Planning to Take Action on Behalf of Canada’s Struggling Energy Producers

| Jason Phillips

The CEO of Suncor Energy Inc. (TSX:SU)(NYSE:SU) recently revealed that he expects Canadian prime minister Justin Trudeau to make a…

Read more »

Energy Stocks

Where Can Investors Benefit From High Oil Prices?

| Ryan Goldsman

With high oil prices here to stay, investors need to consider shares of Crescent Point Energy Corp (TSX:CPG)(NYSE:CPG) to reap…

Read more »

Dividend Stocks

Get Monthly Income From This Stable Stock

| Kay Ng

Pembina Pipeline Corp.’s (TSX:PPL)(NYSE:PBA) +5% yield is superb. How about the stock’s upside potential?

Read more »

The Motley Fool
Energy Stocks

3 Cheap Oil Stocks to Buy Right Now

| David Jagielski

Seven Generations Energy Ltd. (TSX:VII) and these two other energy stocks could see a lot of upside as oil prices…

Read more »

Dividend Stocks

Enbridge Inc. Stock Is a Falling Knife That’s Worth Catching for the Growing ~7% Dividend Yield

| Joey Frenette

Enbridge Inc. (TSX:ENB)(NYSE:ENB) stock's dividend yield nears 7%. Why investors should stop waiting, and buy today.

Read more »

The Motley Fool
Energy Stocks

This Energy Stock Is Up 50%! Buy Now to Get Exposure to More Big Upside!

| Karen Thomas, MSc, CFA

Enerplus Corp. (TSX:ERF) (NYSE:ERF) shares are soaring off of strong company fundamentals and a soaring oil prices.

Read more »

Dividend Stocks

2 Cheap Dividend Stocks to Buy When Others Are Selling

| Haris Anwar

Algonquin Power and Utilities Corp. (TSX:AQN)(NYSE:AQN) is one of the top dividend stocks offering a bargain after the recent weakness.…

Read more »

Energy Stocks

This Canadian Driller Is an Attractive Play on Higher Oil

| Matt Smith

Bet on higher oil by investing in Gran Tierra Inc. (TSX:GTE)(NYSE:GTE).

Read more »

Energy Stocks

Why You Should Buy Enbridge Inc. Right Now

| Demetris Afxentiou

A strong dividend and lucrative growth prospects are just two reasons why investors should strongly consider an investment in Enbridge…

Read more »