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

Dividend Stocks

Here’s Why the Market Has the Latest Line 3 Announcement and Enbridge Inc. All Wrong

| Jason Phillips

Enbridge Inc. (TSX:ENB)(NYSE:ENB) fell 5.3% in trading last week following a ruling by a Minnesota administrative court. But the news…

Read more »

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

Cenovus Energy Inc. vs. Baytex Energy Corp.: Which Stock Is a Top Buy in May?

| Haris Anwar

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) stocks are two top contrarian bets in the energy space. Let's…

Read more »

Dividend Stocks

Is TransCanada Corporation a Top Canadian Dividend Stock for Energy Exposure in Your RRSP?

| Andrew Walker

TransCanada Corporation (TSX:TRP) (NYSE:TRP) might be oversold today. Here's why.

Read more »

Energy Stocks

3 Energy Stocks to Stash in Your TFSA This Month

| Ambrose O'Callaghan

Altagas Ltd. (TSX:ALA) and other energy stocks offer attractive dividends are investors head into the month of May.

Read more »

Dividend Stocks

5 Top Dividend Stocks You Can Buy and Hold Forever

| Jason Phillips

Albert Einstein once said that compound interest was the 'greatest mathematical invention of all time.' Find out how to make…

Read more »

Dividend Stocks

This Leading Hedge Fund Manager Is Recommending You Buy Oil Stocks

| Jason Phillips

Find out why a leading hedge fund manager is saying that the oil sector, and stocks like Crescent Point Energy…

Read more »

Energy Stocks

Can Activist Investors Send This Oil Stock Skyrocketing?

| Joey Frenette

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) could receive a management shakeup courtesy of a group of activist shareholders. Could this cause…

Read more »

The Motley Fool
Dividend Stocks

Could Suncor Energy Inc. Hit $100?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is at a multi-year high. Is the rally just beginning?

Read more »

stock market volatility
Dividend Stocks

Why Investors Need to Hold Quality Stocks: In Case the Market Closes

| Ryan Goldsman

With the market closing early on Friday, investors need to learn about buying high quality companies such as BCE Inc.…

Read more »

Dividend Stocks

3 Ultra-Cheap Dividend Stocks You Can Buy for Your TFSA Today

| Jason Phillips

Following a prolonged slump, the energy sector is now one of the more attractive investments available anywhere in the market.…

Read more »

Dividend Stocks

These Top 5 Energy Stocks Have Absolutely Taken Off in April

| Jason Phillips

These five top energy stocks are all up by at least 12% for April entering Friday's trading, including Baytex Energy…

Read more »

offshore wind generation
Dividend Stocks

Think Renewable Energy Is the Next Big Thing? Try These Stocks on for Size

| Jason Phillips

As the world shifts towards renewable sources of energy for its power, Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) and others stand…

Read more »

Dividend Stocks

Opportunities of a Lifetime: AltaGas Ltd. Stock and Enbridge Inc. Stock Dividend Yields Closing in on 9%

| Karen Thomas, MSc, CFA

Enbridge Inc. (TSX:ENB)(NYSE:ENB) stock and AltaGas Ltd. (TSX:ALA) stock yield 7.11% and 8.84%, respectively. The companies are heading into a…

Read more »

Dividend Stocks

2 Top Energy Stocks to Buy and Hold for the Next Decade

| Haris Anwar

Here is why Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) stock is one of the top energy picks for income investors.

Read more »

oil, petroleum, refinery
Energy Stocks

4 Oil and Gas Stocks That Have Soared up to 35% in the Last Month!

| David Jagielski

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and these three other oil stocks have started to take off and could be great buys today.

Read more »

Dividend Stocks

This Dividend Giant Is Trading Near its 52-Week Lows

| Jason Phillips

TransCanada Corporation (TSX:TRP)(NYSE:TRP) has one of the best track records for dividend growth of any company on the TSX. Is…

Read more »

The Motley Fool
Dividend Stocks

Should You Hang On to AltaGas Ltd.?

| Kay Ng

AltaGas Ltd. (TSX:ALA) offers an 8.9% yield, double-digit upside, and is closing in on the WGL acquisition close date. What…

Read more »

Dividend Stocks

Energy Investors: This Dirt-Cheap 8.5% Yield Stock Just Confirmed its Dividends Are Safe

| Neha Chamaria

AltaGas Ltd. (TSX:ALA) stock is screaming for attention after a strong first-quarter earnings report.

Read more »

soar high in the sky
Dividend Stocks

A Top High-Income Energy Stock That Could Soar Higher

| Joey Frenette

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) shares are starting to pick up traction. Is it time to back up the truck?

Read more »

solar panels
Energy Stocks

Want a Renewable Energy Investment With Growth Potential?

| Demetris Afxentiou

Innergex Renewable Energy Inc. (TSX:INE) offers investors a growing dividend and an expanding portfolio of renewable energy assets with massive…

Read more »

The Motley Fool
Dividend Stocks

Energy Sector Investors: Is Baytex Energy Corp. or Inter Pipeline Ltd. a Top Stock to Buy Today?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) and Inter Pipeline Ltd. (TSX:IPL) offer different ways to play an oil recovery. Which stock should…

Read more »

Dividend Stocks

Is Enbridge Inc. Still a Top Canadian Dividend Stock in the Energy Sector?

| Andrew Walker

Enbridge Inc. (TSX:ENB)(NYSE:ENB) now offers a 7% yield.

Read more »

Energy Stocks

Is Cameco Corp. a Contrarian Buy or a Value Trap?

| Matt Smith

There are signs that Cameco Corp.'s (TSX:CCO)(NYSE:CCJ) much anticipated recovery may never eventuate.

Read more »

Dividend Stocks

1 of the Best Ways to Get Stable Income

| Kay Ng

Here’s why you should take a closer look at TransCanada Corporation (TSX:TRP)(NYSE:TRP) for income and price appreciation.

Read more »

Energy Stocks

1 Top Natural Gas Stock for Investors to Consider

| Matt Smith

Canacol Energy Ltd. (TSX:CNE) is poised to unlock value for investors, despite weaker natural gas.

Read more »

Dividend Stocks

3 Reasons Why Suncor Energy Inc. Is a Better Buy Than Imperial Oil Ltd.

| Jason Phillips

Both Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Imperial Oil Ltd. (TSX:IMO)(NYSE:IMO) make for great investments. Discover the three factors that make…

Read more »

Energy Stocks

Could Oil Return to $100? 4 Stocks You Should Buy Now

| David Jagielski

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and these three other stocks could be great buys, as the price of oil continues to increase.

Read more »

offshore wind generation
Dividend Stocks

2 Top Renewable Energy Stocks for Every Portfolio

| Matt Smith

Boost your portfolio's income and growth by adding Northland Power Inc. (TSX:NPI) and Innergex Renewable Energy Inc. (TSX:INE).

Read more »

The Motley Fool
Dividend Stocks

1 Energy Infrastructure Stock Offering a Unique Opportunity to Play Higher Oil

| Matt Smith

Boost your portfolio's growth and income by investing in Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA).

Read more »

Dividend Stocks

3 Stocks With Dividend Yields in Excess of 8%

| Karen Thomas, MSc, CFA

Ensign Energy Services Inc. (TSX:ESI), Cardinal Energy Ltd. (TSX:CJ), and Alaris Royalty Corp. (TSX:AD) are yielding 8.04%, 8.03%, and 9.32%,…

Read more »

The Motley Fool
Dividend Stocks

These 3 Energy Stocks Are Ridiculously Cheap

| Stephanie Bedard-Chateauneuf, MBA

You can find great bargains in the energy sector at the moment, such as Encana Corp. (TSX:ECA)(NYSE:ECA).

Read more »

The Motley Fool
Dividend Stocks

2 High-Yielding Energy Stocks: Which Dividend Is Safe?

| Haris Anwar

Inter Pipeline Ltd. (TSX:IPL) is one of two high-yielding stocks I like for long-term investors. Find out if their dividends…

Read more »

The Motley Fool
Dividend Stocks

How Much Upside Can These Energy Giants Expect?

| Kay Ng

Should you buy Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) now?

Read more »

Energy Stocks

Cenovus Energy Inc. Is Ready to Unlock Value for Investors

| Matt Smith

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) is an increasingly attractive investment for exposure to Canada's oil sands.

Read more »

Energy Stocks

Are These 3 Energy Stocks Overbought After a Rally in Oil Prices?

| Ambrose O'Callaghan

Gran Tierra Energy Inc. (TSX:GTE)(NYSE:GTE) and others have surged on oil’s renewed strength, and geopolitical events may push them even…

Read more »

Energy Stocks

1 Oil Sands Stock That’s Ready to Soar

| Matt Smith

MEG Energy Corp. (TSX:MEG) is attractively valued and will soar higher as oil continues to rally.

Read more »

The Motley Fool
Dividend Stocks

Which Stock Is the Better Buy: Enbridge Inc. or TransCanada Corporation?

| Jason Phillips

Energy is one of the hottest sectors in the market today. Find out whether TransCanada Corporation (TSX:TRP)(NYSE:TRP) or Enbridge Inc.…

Read more »

The Motley Fool
Dividend Stocks

Which Stock Is More Attractive for Income?

| Kay Ng

Should you consider Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) or Keyera Corp. (TSX:KEY) for a ~5% yield today?

Read more »

Dividend Stocks

3 Top Dividend Stocks Yielding 8%

| David Jagielski

Altagas Ltd (TSX:ALA) and these two other dividend stocks offer strong payouts that could be great long-term additions to your portfolio.

Read more »

The Motley Fool
Dividend Stocks

Baytex Energy Corp. Stock Is 1 Fast-Rising Energy Stock, and This Is Just the Beginning

| Karen Thomas, MSc, CFA

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is up 33% year to date and is one of three energy stocks to buy now.

Read more »