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

The Motley Fool
Dividend Stocks

Why Fortis Inc. Continues to Be a Powerful Investment

| Demetris Afxentiou

In the face of rising interest rates, Fortis Inc. (TSX:FTS)(NYSE:FTS) continues to serve investors as a great long-term option for…

Read more »

telephone pole
Energy Stocks

Better Buy Moving Forward: Hydro One Ltd. or Canadian Utilities Limited?

| Ambrose O'Callaghan

As interest rates rise, utilities such as Hydro One Ltd. (TSX:H) and Canadian Utilities Limited (TSX:CU) may be under pressure.

Read more »

The Motley Fool
Dividend Stocks

The Consumer Is Dying: Where Should Investors Turn?

| Karen Thomas, MSc, CFA

Investors, check out Suncor Energy Inc. (TSX:SU)(NYSE:SU) for its dividend yield and growing free cash flow generation.

Read more »

Dividend Stocks

2 Top Oil and Gas Stocks for Value Investors

| Haris Anwar

Oil and gas stocks such as Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ) provide a good value to investors who think there…

Read more »

Energy Stocks

3 Dividend Stocks to Target as Oil Recovers

| Ambrose O'Callaghan

After oil recently hit five-month highs, Canadian energy companies, such as Altagas Ltd. (TSX:ALA), are looking like good buys in…

Read more »

Dividend Stocks

Why This Energy Stock Is up More Than 12%

| Karen Thomas, MSc, CFA

Energy stocks such as Shawcor Ltd. (TSX:SCL) are up as oil remains above $50.

Read more »

The Motley Fool
Dividend Stocks

This Stock Has a Rising Dividend Payout and Yields Over 4%: Time to Buy?

| Susan Portelance

Income investors: are you looking for stocks with rising dividend payouts? Consider adding Emera Inc. (TSX:EMA), an energy company, to your…

Read more »

Dividend Stocks

Brookfield Infrastructure Partners L.P.: 3 Reasons Not to Sell This Stock

| Haris Anwar

Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) stock has seen a pullback after a recent equity offering. Here's why the pullback is…

Read more »

oil, petroleum, refinery
Dividend Stocks

Can These 2 Energy Stocks Sustain Their Rallies?

| Kay Ng

Torc Oil And Gas Ltd. (TSX:TOG) and another peer offer yields of up to 5.6% with upside potential.

Read more »

The Motley Fool
Energy Stocks

Baytex Energy Corp. Soars 6%: Time to Buy?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) has big upside potential, but risks remain.

Read more »

The Motley Fool
Energy Stocks

Suncor Energy Inc. vs. Crescent Point Energy Corp.: Here’s the Better Buy Today

| Joey Frenette

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) are two hot Canadian energy rebound candidates. Which one is…

Read more »

Energy Stocks

2 Canadian Oil Stocks That Could Soar

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) and Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) have taken a beating in recent years. Is the rout…

Read more »

Dividend Stocks

2 Attractive Dividend Stocks Whose Dividends Could Double

| Haris Anwar

Here is how you could see your dividend from TransCanada Corporation (TSX:TRP)(NYSE:TRP) and one other stock double in a few…

Read more »

Dividend Stocks

How to Determine Dividend Safety

| Kay Ng

A combination of things can improve the safety of your dividends. Here's an example with three companies, including Peyto Exploration…

Read more »

The Motley Fool
Dividend Stocks

RRSP Investors: 2 Dividend-Growth Stocks for Your Retirement

| Haris Anwar

Fortis Inc. (TSX:FTS)(NYSE:FTS) is among the top dividend-growth stocks for your RRSP portfolio. Is it the right time to buy?

Read more »

Dividend Stocks

How to Make Your Retirement Savings Grow Faster

| Haris Anwar

Here is how investing in stocks such as Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Canadian National Railway Company (TSX:CNR)(NYSE:CNI) can help you…

Read more »

Energy Stocks

Ups and Downs of 5 Energy Stocks

| Brad Macintosh

Will Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Cenovus Energy Inc (TSX:CVE)(NYSE:CVE) have another run before internal combustion engines vehicles are taken…

Read more »

win
Dividend Stocks

Northland Power Inc.: Industry Profit Leader With a High Dividend Yield

| Susan Portelance

Do you want a stock that's an industry profit leader and has a high dividend yield over 4%? Then consider…

Read more »

The Motley Fool
Dividend Stocks

Veresen Inc. Is up Over 37% This Year: Is it Still a Good Buy?

| David Jagielski

Why Veresen Inc. (TSX:VSN) might present a good option for investors looking for some stable dividends.

Read more »

Dividend Stocks

4 Stocks Under $100 Each to Make a Great Portfolio

| Demetris Afxentiou

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is one of several great investments that can serve as the foundation for a great…

Read more »

Dividend Stocks

Positioning for Oil Price Strength: Baytex Energy Corp. or Crescent Point Energy Corp.?

| Karen Thomas, MSc, CFA

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) struggles with its balance sheet, while Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) pays a 4% dividend.

Read more »

The Motley Fool
Dividend Stocks

These 3 Energy Stocks Have Double-Digit Upside

| Kay Ng

Energy stocks look like they may be turning around. If you can stand volatility, you might consider Arc Resources Ltd.…

Read more »

Dividend Stocks

2 Oversold Dividend Stocks Yielding 7%

| Andrew Walker

Here's why Inter Pipeline Ltd. (TSX:IPL) and Altagas Ltd. (TSX:ALA) might be worth a look right now.

Read more »

Dividend Stocks

Should Cameco Corp. or Suncor Energy Inc. Be in Your Portfolio?

| Andrew Walker

Cameco Corp. (TSX:CCO)(NYSE:CCJ) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) are facing challenging market conditions. Is one worth a shot today?

Read more »

Dividend Stocks

Dividend Stocks: 4 Cash Cows Yielding up to 5%

| Haris Anwar

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and three other stocks are some of the best cash cows for dividend investors.

Read more »

oil, petroleum, refinery
Energy Stocks

Is Crescent Point Energy Corp. About to Skyrocket?

| Joey Frenette

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) surged over 4% on Thursday. Should contrarians jump in before shares take off?

Read more »

Energy Stocks

Now Might Be the Time to Bet on Canadian Oil Stocks

| Ambrose O'Callaghan

Canadian companies, like Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE), have gained as oil prices continue to rebound…

Read more »

The Motley Fool
Dividend Stocks

Monthly Income: 2 Dividend Stocks Yielding up to 8%

| Haris Anwar

Altagas Ltd. (TSX:ALA) and one other dividend stock offer attractive yields for your monthly income. Find out if they're good…

Read more »

Dividend Stocks

Dividend Income: Is Inter Pipeline Ltd.’s 7% Payout Safe?

| Haris Anwar

Here is why Inter Pipeline Ltd. (TSX:IPL) stock's 7% dividend is safe to consider for your retirement income portfolio.

Read more »

Dividend Stocks

TFSA Investors: These 3 Dividend Stocks Have Payouts That Just Keep Growing!

| David Jagielski

Manulife Financial Corp. (TSX:MFC)(NYSE:MFC) is a great dividend stock to add to your TFSA, and it's only the third-best one…

Read more »

retire
Dividend Stocks

Retired? Here Are 2 Safe Dividend-Paying Stocks to Own

| Karen Thomas, MSc, CFA

Fortis Inc. (TSX:FTS)(NYSE:FTS) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) provide retirees with income and stability.

Read more »

The Motley Fool
Dividend Stocks

2 Reliable Dividend Stocks for Your TFSA Income Portfolio

| Andrew Walker

Telus Corporation (TSX:T)(NYSE:TU) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) are two of Canada's top companies. Is one a better income bet today?

Read more »

electric power transmission
Energy Stocks

Should You Buy TransAlta Corporation Today?

| Andrew Walker

TransAlta Corporation (TSX:TA)(NYSE:TAC) has had a rough run, but better days could be on the horizon.

Read more »

Dividend Stocks

Is This 4% Yield Canada’s Best Up-and-Coming Dividend-Growth Stock?

| Matt Smith

Solid growth potential and a growing dividend make Parkland Fuel Corp. (TSX:PKI) an attractive dividend-growth stock.

Read more »

Dividend Stocks

Are Rising Interest Rates a Threat to Top Dividend Stocks?

| Haris Anwar

Here is why you shouldn't sell some top dividend stocks, such as Enbridge Inc. (TSX:ENB)(NYSE:ENB), as interest rates rise in…

Read more »

gas
Dividend Stocks

Altagas Ltd.: A High-Yielding Dividend-Paying Stock for Your TFSA

| Karen Thomas, MSc, CFA

Altagas Ltd. (TSX:ALA) is performing ahead of expectations amid stock price weakness and uncertainty.

Read more »

The Motley Fool
Energy Stocks

Cenovus Energy Inc.: Has the Bottom Arrived?

| Joey Frenette

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) is starting to pick up positive momentum. Is the bottom here? Or is the rally going…

Read more »

Energy Stocks

Should Cenovus Energy Inc. Be in Your Portfolio?

| Andrew Walker

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) is up more than 15% since late August.

Read more »

The Motley Fool
Dividend Stocks

A Top Oil Stock to Buy Right Now

| Karen Thomas, MSc, CFA

Upcoming catalysts will provide Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ) shareholders with solid returns.

Read more »

The Motley Fool
Energy Stocks

Warm Up in Autumn With 4 Canadian Utilities Yielding up to 4.5%

| Ambrose O'Callaghan

Hydro One Ltd. (TSX:H) and other utilities offer warmth for investors in the form of income as we enter chilly…

Read more »