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

oil and gas pipeline
Energy Stocks

Canada’s Pipeline Powerhouse: Is Enbridge’s Yield Too Good to Ignore?

| Andrew Button

Enbridge Inc (TSX:ENB) stock has a 7.6% dividend yield. Is it a buy?

Read more »

Energy Stocks

Dividend Investors: Top TSX Utility Stocks to Buy as Oil Prices Rise

| Amy Legate-Wolfe

Oil and gas stocks wax and wane, but utility stocks stay strong. Yet, I would consider this newer one if…

Read more »

Energy Stocks

Fortis Stock – Buy, Sell, or Hold?

| Andrew Button

Enbridge Inc (TSX:ENB) stock sports a 7.64% yield at today's prices. Can you trust the yield?

Read more »

Energy Stocks

Why Dividend-Paying Energy Stocks Are Gaining Traction in Canada

| Robin Brown

Canadian Natural Resources (TSX:CNQ) and Tourmaline Oil (TSX:TOU) are further along the curve than most other stocks in the sector.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Friday, November 24

| Jitendra Parashar

The TSX index may remain choppy for the third consecutive session today, as the U.S. stock market will close early.

Read more »

oil and gas pipeline
Energy Stocks

Down by 17.75%: Is Enbridge Stock a Buy Today?

| Adam Othman

Enbridge is down by over 17% from its 2022 high, which might make it a more attractive investment to consider…

Read more »

Energy Stocks

3 Energy Stocks to Turbo-Power Your TFSA for 2024

| Joey Frenette

Suncor Energy (TSX:SU) and other energy stocks that could be in for a big 2024.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, November 23

| Jitendra Parashar

Most TSX stocks may go sideways today, as the U.S. market remains closed for Thanksgiving Day.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

2 Top Energy Stocks to Buy on the TSX Today

| Daniel Da Costa

These top energy stocks both offer attractive dividend yields and long-term growth potential, making them two of the best to…

Read more »

Energy Stocks

TFSA Investors: The Best Energy Stocks for Fast-Growing Dividends

| Andrew Button

TSX Energy stocks like Suncor Energy (TSX:SU) offer high dividend growth.

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Energy Stocks

Suncor Stock: Yielding Almost 5% and Extremely Cheap

| Karen Thomas, MSc, CFA

A renewed focus on safety and operational efficiency should enable Suncor to fully benefit from its diversified business.

Read more »

Energy Stocks

2 TSX Utility Stocks With Attractive Dividend Yields

| Chris MacDonald

Here are two of the top Canadian dividend stocks investors should consider in the utilities space for solid yields and…

Read more »

A meter measures energy use.
Energy Stocks

Why Utility Stocks Could Be Canada’s Safeguard Against Increasing Rates

| Amy Legate-Wolfe

Utility stocks climbed and fell during the early days of the economic downturn, but now could be the best time…

Read more »

Retirees sip their morning coffee outside.
Energy Stocks

Retirees: Here’s How to Boost Your CPP Pension

| Karen Thomas, MSc, CFA

Enbridge stock, which has a dividend yield of 7.66%, is an example of a prime candidate to consider to boost…

Read more »

Energy Stocks

Is CVE Stock a Buy in November 2023?

| Chris MacDonald

Here's why Cenovus Energy (TSX:CVE) could be a sneaky way for long-term investors to play the rising commodity price environment.

Read more »

oil and gas pipeline
Energy Stocks

Better Buy: Enbridge Stock or TC Energy Stock?

| Rajiv Nanjapla

Given their solid underlying businesses, excellent track record of dividend growth, and high dividend yields, let’s assess which among Enbridge…

Read more »

Dividend Stocks

The Future of Dividend Investing: Trends and Predictions for Canada 

| Puja Tayal

Now is a good time to boost your dividend portfolio, as these stocks could recover from their lows in 2024.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, November 20

| Jitendra Parashar

Rising commodity prices could lift the main TSX index at the open today, as investors await Canada’s consumer inflation numbers.

Read more »

Energy Stocks

2 Top Dividend-Paying Energy Stocks to Buy on the TSX Today

| Jitendra Parashar

These two dividend-paying Canadian energy stocks are outperforming the broader market in 2023 by a big margin.

Read more »

Energy Stocks

Is Freehold Royalties Stock a Buy Just for the 7.4% Dividend Yield?

| Amy Legate-Wolfe

Freehold (TSX:FRU) stock may have a huge dividend yield, but the better news is, it's not about to blow up…

Read more »

Energy Stocks

Canadian Investors: 2 Oversold Canadian Stocks to Buy Now

| Christopher Liew, CFA

Two oversold Canadian stocks trade at a discount but should rebound soon due to solid fundamentals.

Read more »

oil and gas pipeline
Energy Stocks

Should You Buy Enbridge for its 8% Yield?

| Chris MacDonald

Here's what investors may want to keep in mind when it comes to considering Enbridge stock as a top dividend…

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

3 Canadian Small-Cap Stocks Packing Enormous Potential

| Christopher Liew, CFA

Three Canadian small-cap stocks with market-beating returns in 2023 are exciting buys for their enormous growth potential.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Wednesday, November 15

| Jitendra Parashar

Rising commodity prices could lift the TSX index at the open today, as investors await the latest U.S. wholesale inflation…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Why This 8.9% Dividend Stock Surged Last Week

| Brian Paradza, CFA

PHX Energy Services raises its dividend by 33%, as the stock rallies 27% in a week. Can the momentum sustain?

Read more »

oil and natural gas
Energy Stocks

Better Buy: TC Energy Stock or Enbridge?

| Adam Othman

Choosing one of the two similar businesses to invest in is influenced by a range of temporary and long-term factors.

Read more »

Energy Stocks

How Much to Invest to Get $500 in Dividends Every Month

| Robin Brown

Wondering how to earn $500 per month in dividends? Here's how much cash you will need based on the level…

Read more »

Energy Stocks

Is Enbridge Stock a Buy for its Big Dividend?

| Andrew Walker

Enbridge now offers a very attractive dividend yield. Is the payout safe?

Read more »

Energy Stocks

My 2 Favourite TSX Energy Stocks for November 2023

| Adam Othman

The energy sector has been struggling for a while, and with the oil prices going down, there may be a…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, November 13

| Jitendra Parashar

TSX investors may remain volatile today, as investors await the important U.S. consumer inflation data.

Read more »

oil and gas pipeline
Energy Stocks

Should You Buy TC Energy or Enbridge for Passive Income?

| Andrew Walker

TC Energy and Enbridge now offer yields above 7%. Is one stock now oversold?

Read more »

oil and natural gas
Energy Stocks

The Best Canadian Energy Stocks to Buy for Dividends

| Robin Brown

Canadian energy stocks have pulled back. Now might be the time to pick up some stocks for big dividend income!

Read more »

Energy Stocks

Is Fortis Stock a Buy?

| Andrew Button

Fortis Inc (TSX:FTS) stock has a high dividend yield and an excellent track record of dividend growth. Do these characteristics…

Read more »

Energy Stocks

Enbridge Stock: The Bottom Isn’t Here Yet 

| Puja Tayal

Enbridge stock has dipped 22% since June 2022. Is there more downside? How to make the best of this situation?

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, November 9

| Jitendra Parashar

Third-quarter corporate earnings could keep TSX stocks volatile today, as commodity prices go sideways.

Read more »

Energy Stocks

CNQ Stock is Up 25 Percent in 2023! Is the Stock a Buy Now?

| Rajiv Nanjapla

Despite an over 25% increase in the stock price, the uptrend in CNQ could continue.

Read more »

Energy Stocks

When Oil Prices Are Rising, These Stocks Benefit the Most

| Karen Thomas, MSc, CFA

Energy stocks such as Canadian Natural Resources (CNQ) stock have strong leverage from rising oil prices, which remain above $80.

Read more »

oil and gas pipeline
Energy Stocks

Enbridge Stock is Yielding Over 7.5%: Time to Buy or Buyer Beware?

| Robin Brown

New investments coming online could support Enbridge's historical dividend returns.

Read more »

Energy Stocks

Where to Invest in Oil Stocks in November 2023

| Amy Legate-Wolfe

These three oil stocks have both short- and long-term growth figured out. Make sure to consider them for your watchlist.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, November 6

| Jitendra Parashar

The main TSX index just posted its best weekly performance since April 2020.

Read more »