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

Warm Your RRSP With 2 High-Yield Utilities

| Brad Macintosh

Downward pressures have made Enercare Inc. (TSX:ECI) and another stock too good to ignore.

Read more »

The Motley Fool
Dividend Stocks

Better Buy: Algonquin Power & Utilities Corp. or Enbridge Inc.?

| Haris Anwar

Here is why Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) stocks are good picks for long-term income…

Read more »

Dividend Stocks

Altagas Ltd. and Brookfield Infrastructure Partners L.P. Are 2 Top Stocks to Own in 2018

| Karen Thomas, MSc, CFA

Altagas Ltd. (TSX:ALA) and Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) are both paying shareholders high yields while offering strong growth into…

Read more »

Dividend Stocks

3 Stocks Trading Below Book Values That Could Be Great Buys

| David Jagielski

Teck Resources Ltd. (TSX:TECK.B)(NYSE:TECK) and these two other stocks are trading at big discounts and could be great buys today.

Read more »

The Motley Fool
Dividend Stocks

This 5% Yield Is Set to Soar

| Matt Smith

Boost income and growth by adding Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) to your portfolio.

Read more »

Dividend Stocks

Why Investors Should Back Up the Truck on Shares of Enbridge Inc.!

| Ryan Goldsman

With a current yield of 5.5%, investors need to stop and take notice of Enbridge Inc. (TSX:ENB)(NYSE:ENB).

Read more »

The Motley Fool
Dividend Stocks

2 Stocks Trading at 52-Week Lows: Time to Buy?

| Karen Thomas, MSc, CFA

Peyto Exploration and Development Corp. (TSX:PEY) and Advantage Oil and Gad Ltd. (TSX:AAV)(NYSE:AAV) are high-quality stocks in a cyclically depressed…

Read more »

Energy Stocks

Is Enbridge Inc. the Best Bargain on the TSX?

| David Jagielski

Enbridge Inc. (TSX:ENB)(NYSE:ENB) could see its stock price take off if it gets the go-ahead for its Line 3 pipeline upgrade.

Read more »

The Motley Fool
Energy Stocks

Crude Oil Quickly Closing in on $60: Time to Buy Baytex Energy Corp.?

| Karen Thomas, MSc, CFA

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) rallies as the company's ability to reduce debt seems more certain and more likely to send…

Read more »

The Motley Fool
Energy Stocks

Crescent Point Energy Corp.: A Buy Below $10?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) trades close to its multi-year lows, despite a strong rally in crude prices in recent…

Read more »

The Motley Fool
Dividend Stocks

3 Energy Stocks With Yields of 5-8%

| Joseph Solitro

Searching for yield? If so, Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI), Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP), and Capital Power Corp. (TSX:CPX)…

Read more »

Dividend Stocks

Enbridge Inc.: A High-Yield Dividend Stock I’d Buy Right Now

| Haris Anwar

Here is why Enbridge Inc. (TSX:ENB)(NYSE:ENB) stock's record high dividend yield offers a buying opportunity.

Read more »

gas
Dividend Stocks

Peyto Exploration & Development Corp.: Is the Bottom in Yet?

| Kay Ng

Contrarian investors who are considering buying Peyto Exploration & Development Corp. (TSX:PEY) should have two key things in mind.

Read more »

The Motley Fool
Energy Stocks

How Far Can Oil Climb Before the New Year?

| Ambrose O'Callaghan

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and TransCanada Corporation (TSX:TRP)(NYSE:TRP) could see a boost as oil looks poised to climb further before…

Read more »

Dividend Stocks

TFSA Investors: 2 Dividend Stocks I’d Buy Today

| Haris Anwar

Dividend stocks such as Enbridge Inc. (TSX:ENB)(NYSE:ENB) are well positioned to boost your TFSA if you hold them in your…

Read more »

utility power supply
Dividend Stocks

2 Top Electric Utilities Stocks With Yields of 3-5%

| Joseph Solitro

Want a reliable dividend stock? If so, consider electric utilities stocks such as Emera Inc. (TSX:EMA) and Fortis Inc. (TSX:FTS)(NYSE:FTS).

Read more »

The Motley Fool
Energy Stocks

Venezuela’s Default Is Good News for Energy Stocks

| Matt Smith

The latest news concerning global oil supplies makes now the time to buy Baytex Energy Corp. (TSX:BTE)(NYSE:BTE).

Read more »

Dividend Stocks

Stock Market Crash: These 5 Dividend Stocks Will Help When it Comes

| Haris Anwar

Fortis Inc. (TSX:FTS)(NYSE:FTS) and Dollarama Inc. (TSX:DOL) belong to a group of dividend stocks which are defensive in nature and can provide…

Read more »

Dividend Stocks

The Toronto Stock Exchange Is Near All-Time Highs: What Do You Do Now?

| Jason Phillips

The Toronto Stock Exchange recently hit all-time highs. Find out how it affects the prospects for companies such as Air…

Read more »

The Motley Fool
Dividend Stocks

Monthly Income: 2 High-Yield Dividend Stocks Selling Cheap

| Haris Anwar

You can build a reliable monthly income portfolio by investing in high-yield dividend stocks such as Inter Pipeline Ltd. (TSX:IPL).

Read more »

The Motley Fool
Dividend Stocks

Nebraska Approves the Keystone XL: Why Investors Shouldn’t Be Too Excited

| David Jagielski

TransCanada Corporation (TSX:TRP)(NYSE:TRP) got the approval on its Keystone XL pipeline from Nebraska. However, it wasn't all good news, and it's…

Read more »

The Motley Fool
Dividend Stocks

Crescent Point Energy Corp. Can’t Seem to Sustain a Rally: Is it Still a Solid Rebound Candidate?

| Joey Frenette

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) can't sustain a rally. Here's why investors should remain patient.

Read more »

Dividend Stocks

Enbridge Inc. Shares Are Down 20% Year to Date: Time to Buy?

| Stephanie Bedard-Chateauneuf, MBA

Enbridge Inc. (TSX:ENB)(NYSE:ENB) dropped 5% after its Q3 2017 results release and keeps falling. Is it time to buy this…

Read more »

Energy Stocks

A Rising Energy Stock That Could Continue to Soar

| Andrew Walker

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) is up more than 40% in the past two months. How high could it go?

Read more »

The Motley Fool
Energy Stocks

Should You Buy Enbridge Inc. or Suncor Energy Inc. Today?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) are two of Canada's top names in the energy sector. Is one…

Read more »

Dividend Stocks

Better Buy: Enbridge Inc. or Algonquin Power & Utilities Corp.?

| Joey Frenette

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) are two top-notch income opportunities that exist today. Here's what…

Read more »

The Motley Fool
Dividend Stocks

2 High-Yielding Energy Stocks Just Raised Their Payouts

| Joseph Solitro

Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI) and Secure Energy Services Inc. (TSX:SES) just raised their dividends. Which should you buy today?

Read more »

Energy Stocks

Why Baytex Energy Corp. Is Rallying Almost 10% Today

| Karen Thomas, MSc, CFA

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) rallies off operational improvements and debt reduction.

Read more »

Energy Stocks

Cenovus Energy Inc.: The Best Contrarian Bet for 2018?

| Joey Frenette

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) is too cheap to ignore. Here's why the bottom may be in for the long-time laggard.

Read more »

Energy Stocks

Is Altagas Ltd.’s 7% Yield Safe?

| David Jagielski

Altagas Ltd. (TSX:ALA) pays an attractive 7% yield, but is it sustainable?

Read more »

The Motley Fool
Dividend Stocks

Retirees: Give Yourself a Raise With These High-Yield Dividend Stocks

| Haris Anwar

Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) is a high-yielding dividend stock which offers safety and a higher income potential to retirees.

Read more »

Energy Stocks

Why Cenovus Energy Inc. Is a “Pound-the-Table” Buy on the Dip

| Joey Frenette

Here's why long-term investors should strongly consider backing up the truck on Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) as it continues to…

Read more »

The Motley Fool
Energy Stocks

Why Cenovus Energy Inc. Was Down 5% on Tuesday

| David Jagielski

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) was down 5% in trading on Tuesday, as the company's asset sales underwhelmed investors.

Read more »

The Motley Fool
Energy Stocks

Baytex Energy Corp.: An Incredibly Cheap Oil Stock

| Haris Anwar

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) stock is showing a strong rebound after a long slump. Is this incredibly cheap oil stock…

Read more »

The Motley Fool
Dividend Stocks

Looking for Income and Growth? Then Invest in This Defensive Energy Name

| Karen Thomas, MSc, CFA

Freehold Royalties Ltd. (TSX:FRU) offers investors a defensive name for exposure to a healthy, rising dividend and rising oil prices.

Read more »

Dividend Stocks

3 Oversold Stocks That Could Be Great Buys

| David Jagielski

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and these two other stocks could be set to take off.

Read more »

Energy Stocks

Top Energy Names to Buy on Weakness

| Karen Thomas, MSc, CFA

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) is among my top picks in the energy space.

Read more »

Dividend Stocks

TFSA Investors: These Stocks Are Poised to Hike Dividends in 2018

| Haris Anwar

Find out if stocks, such as Bank of Nova Scotia (TSX:BNS)(NYSE:BNS), are likely to increase their dividends in 2018.

Read more »

The Motley Fool
Dividend Stocks

Dividend Investors: Should You Own Suncor Energy Inc. in Your TFSA?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is one of Canada's top companies. Should you own it?

Read more »

Dividend Stocks

Is Enbridge Inc.’s 12% Dividend Growth Under Threat?

| Haris Anwar

Enbridge Inc. (TSX:ENB)(NYSE:ENB) is under pressure on concerns about its dividend-growth plans. Should you be worried?

Read more »