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

oil and natural gas
Energy Stocks

Better Buy: Suncor Energy Stock or Canadian Natural Resources

| Andrew Walker

Suncor and CNQ are on a roll. Is one stock a better bet?

Read more »

Energy Stocks

Here’s Why Tourmaline Oil Stock Can Be a Long-Term Winner

| Aditya Raghunath

Tourmaline stock has surged 123% in the last 10 years after accounting for dividends. Is TOU stock a buy right…

Read more »

Energy Stocks

This TSX Energy Stock Could Be a Value Play to Consider Right Now

| Brian Paradza, CFA

Here's why Vermilion Energy stock could be a value investor's favourite stock to buy right now.

Read more »

Energy Stocks

Better Buy: Enbridge Stock or TC Energy?

| Andrew Walker

Enbridge and TC Energy are out of favour with investors. Is one stock now oversold?

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Wednesday, September 13

| Jitendra Parashar

The key consumer inflation report from the United States may keep the TSX index volatile today.

Read more »

Energy Stocks

Crescent Point Energy Stock: Should You Buy, Hold, Or Sell?

| Puja Tayal

The black gold is in the era of peak demand. Should you buy a small-cap oil stock like Crescent Point…

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Is Suncor Stock a Buy for Its 4.5% Dividend Yield?

| Karen Thomas, MSc, CFA

Suncor Energy stock has a lot going for it besides its dividend, such as a cheap valuation and strong business…

Read more »

canadian energy oil
Energy Stocks

Cenovus Energy Is Profiting Off High Oil Prices

| Andrew Button

Cenovus Energy (TSX:CVE) stock gained thanks to high oil prices in 2022. Could this year be similar?

Read more »

Energy Stocks

Should CNQ Stock Be on Your Buy List?

| Andrew Walker

CNRL recently hit a 12-month high. Are more gains on the way?

Read more »

oil and gas pipeline
Energy Stocks

Is Enbridge Stock a Buy for its Big Dividend?

| Kay Ng

Enbridge stock could be a good buy now for income-focused investors thanks to its large dividend of close to 7.8%…

Read more »

Energy Stocks

Is Suncor Stock Still Cheap?

| Andrew Walker

Suncor is moving higher. Is it time to buy?

Read more »

Energy Stocks

EV Stocks vs. Battery Metal: Which Green Investment Should You Choose?

| Adam Othman

Look closely at these two TSX stocks if you’re looking for assets that give you exposure to investing in a…

Read more »

Energy Stocks

Is Enbridge Stock a Buy?

| Andrew Walker

Enbridge might be oversold. Should you buy now or wait?

Read more »

A plant grows from coins.
Energy Stocks

3 Reasons I’m Buying Hydro One Stock Today

| Ambrose O'Callaghan

Hydro One Ltd. (TSX:H) stock looks like a great buy today for its value, dividend history, and defensive potential in…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, September 7

| Jitendra Parashar

The Bank of Canada governor Tiff Macklem’s comments about the economy and inflation will remain on TSX investors’ radar today.

Read more »

Energy Stocks

Is Canadian Solar Stock a Buy in September 2023?

| Aditya Raghunath

Canadian Solar is an undervalued clean energy stock trading at a massive discount to consensus price target estimates.

Read more »

oil and gas pipeline
Energy Stocks

High-Yield Investors: Should You Buy TC Energy Stock Now?

| Andrew Walker

Is TRP stock now good to buy for a TFSA or a RRSP?

Read more »

Nickel ore is mined from the ground.
Energy Stocks

Buy 130 Shares of This Dirt-Cheap Uranium Stock for $16,719 in Potential Returns

| Amy Legate-Wolfe

Cameco stock (TSX:CCO) is perhaps the best opportunity for investors to create long-term returns, with a CAGR at 29%!

Read more »

Technology
Energy Stocks

2 Cheap Energy Stocks to Buy for Their Dividends

| Adam Othman

If you’re looking for dividend stocks in the energy sector, consider adding these two cheap energy stocks to your self-directed…

Read more »

Energy Stocks

This Stock Just Hit $7.18 Today, and it’s Poised for Takeoff

| Christopher Liew, CFA

A clean energy stock is a buying opportunity today for its absurdly low price vis-à-vis its massive growth potential.

Read more »

Energy Stocks

Where to Invest $2,000 in September 2023

| Jitendra Parashar

Here are two of the safest Canadian stocks you can buy in September 2023 as markets remain turbulent.

Read more »

Energy Stocks

Is CNQ Stock a Buy in September 2023?

| Andrew Walker

CNQ stock is on a roll. Are more gains on the way?

Read more »

Energy Stocks

Is Suncor Stock a Buy in September 2023?

| Andrew Walker

Suncor's share price is moving higher. Is SU stock still undervalued?

Read more »

Energy Stocks

3 Stocks Powering the Green Economy

| Christopher Liew, CFA

Three Canadian stocks that power the green economy and commit to a net zero world should attract more ESG investors.

Read more »

oil and gas pipeline
Energy Stocks

Should You Buy TC Energy Stock for its +7% Dividend Yield?

| Puja Tayal

TC Energy stock has been trading below its pandemic low since the announcement of the spinoff of the oil pipeline…

Read more »

Energy Stocks

Buy Alert: Enbridge Stock Is Trading Near Lows

| Puja Tayal

Investing now in Enbridge stock can earn you an extra $42.6 annually and even compound it. Read further to know…

Read more »

Energy Stocks

2 Undervalued TSX Gems to Buy Right Now

| Aditya Raghunath

TSX stocks such as Enerflex and Payfare are trading at attractive valuations right now. Should you buy these cheap stocks…

Read more »

Energy Stocks

Better Buy: Algonquin Power or Enbridge Stock?

| Joey Frenette

Algonquin Power & Utilities (TSX:AQN) and Enbridge (TSX:ENB) are dividend beasts that contrarians may wish to watch right now.

Read more »

Energy Stocks

This 7.11% Dividend Stock Pays Cash Every Month

| Amy Legate-Wolfe

This 7.11% dividend stock just made a huge move that has investors clamouring, but it's still trading at a discount…

Read more »

Energy Stocks

Is Suncor Stock a Buy Today?

| Andrew Walker

Suncor (TSX:SU) has picked up a bit of a tailwind in the past few weeks. Investors who missed the latest…

Read more »

oil and natural gas
Energy Stocks

3 Top Canadian Energy Stocks to Buy for Dividends

| Kay Ng

If you're looking for dividends in the energy sector, you can consider these names that appear to pay safe dividends.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

2 Top Renewable Energy Stocks to Buy in August

| Daniel Da Costa

These two top renewable energy stocks offer incredible long-term growth potential, making them two of the best stocks to buy…

Read more »

Energy Stocks

Here’s How Pembina Pipeline Stock Can Afford Its 6.4% Dividend Yield

| Aditya Raghunath

Pembina Pipeline stock currently offers shareholders a dividend yield of 6.4%. With a payout ratio of below 60%, can PPL…

Read more »

Energy Stocks

Before You Buy Tourmaline Stock: Here’s a Dividend Stock I’d Buy First

| Amy Legate-Wolfe

Tourmaline (TSX:TOU) stock soared in share price, plunged, and is up again. Here's why I'd pick this dividend stock over…

Read more »

Energy Stocks

Here’s How TC Energy Can Afford to Pay You a 7.7% Dividend

| Brian Paradza, CFA

TC Energy is a high-yield Canadian dividend stock that could afford to pay investors a 7.7% dividend yield over the…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, August 21

| Jitendra Parashar

The TSX Composite benchmark slid 2.9% last week to post its worst performance in 23 weeks.

Read more »

oil and gas pipeline
Energy Stocks

Here’s How Enbridge Can Afford its 7.6% Dividend Yield

| Andrew Button

Enbridge Inc (TSX:ENB) has an extremely high dividend yield. Here's how the company can afford to pay it.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Friday, August 18

| Jitendra Parashar

The TSX Composite benchmark remains on track to end this week deep in the negative territory.

Read more »

Energy Stocks

Is TC Energy Stock a Buy Now for its 7.7% Dividend Yield?

| Andrew Walker

TRP stock looks oversold. Is more downside on the way?

Read more »

Energy Stocks

Suncor Stock: Time to Buy?

| Andrew Walker

Suncor is lagging its peers. Is a turnaround on the way?

Read more »