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 pump jack under night sky
Energy Stocks

Is Baytex Energy Stock a Good Buy?

| Karen Thomas, MSc, CFA

A strengthening balance sheet, more share buybacks, and low valuations make Baytex Energy worth taking a look at.

Read more »

man looks worried about something on his phone
Energy Stocks

1 No-Brainer Energy Stock to Buy With $500 Right Now

| Puja Tayal

Learn why energy stock investments are essential in Canada, focusing on Canadian Natural Resources as a top choice for investors.

Read more »

Hourglass and stock price chart
Energy Stocks

Where Will Enbridge Stock Be in 5 Years?

| Puja Tayal

Find out how Enbridge is navigating through macroeconomic events while achieving growth and extending its dividend.

Read more »

chart reflected in eyeglass lenses
Energy Stocks

1 Magnificent Energy Stock Down 29% to Buy and Hold Forever

| Jitendra Parashar

Here’s why this under-the-radar TSX stock might be one of the best long-term buys in the energy sector today.

Read more »

Oil industry worker works in oilfield
Energy Stocks

Should You Buy Suncor or Canadian Natural Resources Now?

| Andrew Walker

Suncor and Canadian Natural Resources are up in recent months. Are more gains on the way for one of these…

Read more »

a-developer-typing-lines-of-ai-code-while-viewing-multiple-computer-monitors
Energy Stocks

Buy 928 Shares of This Stock for $300 in Monthly Dividend Income

| Andrew Button

Enbridge (TSX:ENB) has a 5.8% dividend yield.

Read more »

woman checks off all the boxes
Energy Stocks

5 Reasons to Buy and Hold This Canadian Stock for Life

| Karen Thomas, MSc, CFA

Altagas offers investors exposure to the stable and growing utilities business as well as the lucrative LNG business.

Read more »

trends graph charts data over time
Energy Stocks

The Resurgence Plays: 2 Energy Stocks Poised for Massive Turnaround Gains in 2026

| Christopher Liew, CFA

Two surging TSX energy stocks could sustain their strong momentum to deliver massive gains in 2026.

Read more »

Nuclear power station cooling tower
Energy Stocks

2 Top TFSA Stocks to Buy and Hold for the Long Term

| Joey Frenette

Cameco (TSX:CCO) is a great top pick for a long-term TFSA that aims to compound wealth.

Read more »

engineer at wind farm
Energy Stocks

5.5% Dividend Yield: I’m Buying This Passive Income Stock In Bulk

| Chris MacDonald

Enbridge (TSX:ENB) has had its ups and downs in recent years, but here's why the future may be pointing in…

Read more »

canadian energy oil
Energy Stocks

Dividend Investors: Top Canadian Energy Stocks to Buy in December

| Andrew Button

Suncor Energy Inc (TSX:SU) is a great energy stock to own in December.

Read more »

An analyst uses a computer and dashboard for data business analysis and Data Management System with KPI and metrics connected to the database for technology finance, operations, sales, marketing, and artificial intelligence.
Energy Stocks

Dividend Investors: Premier Canadian Energy Stocks to Buy in December

| Karen Thomas, MSc, CFA

These three Canadian energy stocks with yields of up to 5% are solid dividend buys in preparation for the new…

Read more »

stock chart
Energy Stocks

This Undervalued Stock Is Surging, and It’s Still a Buy on the Way Up

| Joey Frenette

Suncor Energy (TSX:SU) shares might be too cheap to ignore despite industry challenges.

Read more »

how to save money
Energy Stocks

Better Energy Stock: Canadian Natural Resources vs. Suncor

| Chris MacDonald

Let's do a compare and contrast on Canadian Natural Resources (TSX:CNQ) and Suncor (TSX:SU), and see which company is the…

Read more »

The sun sets behind a power source
Energy Stocks

A Top Canadian Dividend Stock to Buy in December 2025

| Demetris Afxentiou

Investors seeking defensive, growing income should consider Fortis as a top Canadian dividend stock.

Read more »

Oil industry worker works in oilfield
Energy Stocks

Where Will CNQ Stock Be in 3 Years?

| Amy Legate-Wolfe

CNQ’s next three years look less cyclical and more compounding, here’s why dividends, buybacks, and cash flow could keep rising…

Read more »

happy woman throws cash
Energy Stocks

Buy This Little-Known Cash Machine for Your TFSA

| Adam Othman

This TSX dividend stock might be an excellent holding for your TFSA portfolio to generate tax-free dividend income.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

The 3 Canadian Energy Companies Holding Strong Even as Oil Prices Fall

| Demetris Afxentiou

Some Canadian energy companies are faring better than others as oil prices continue to fall. Here’s a look at three…

Read more »

oil pump jack under night sky
Energy Stocks

Best Stock to Buy Right Now: Canadian Natural Resources vs. Suncor

| Amy Legate-Wolfe

Two Canadian energy giants pay big dividends, but which one is better for steady income when oil swings?

Read more »

Oil industry worker works in oilfield
Energy Stocks

Is Canadian Natural Resources Stock a Good Buy Right Now?

| Andrew Walker

CNRL is down from the 2024 highs. Is a rebound on the way?

Read more »

woman looks at iPhone
Energy Stocks

Passive Income: How Much Do You Need to Invest to Make $500 Per Month?

| Karen Thomas, MSc, CFA

These passive income stocks are yielding over 6% and are set to benefit enormously from the expanding natural gas demand…

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Best Stock to Buy Right Now: Canadian Natural Resources vs. Cenovus?

| Amy Legate-Wolfe

Steady CNQ or higher-octane Cenovus? See which oil stock looks best now, and why owning both could make sense.

Read more »

Canadian Dollars bills
Energy Stocks

The Best Stocks to Invest $5,000 in Right Now

| Aditya Raghunath

Canadian investors looking to beat the broader market should consider owning stocks such as Stantec right now.

Read more »

hand stacks coins
Energy Stocks

3 Safer Energy Stocks With Big Dividend Yields

| Kay Ng

These energy stocks offer big but safe yields, and income investors should have them on their watchlist to potentially buy…

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Is Enbridge Stock a Good Buy?

| Aditya Raghunath

Enbridge is a blue-chip TSX dividend stock that offers you a tasty dividend yield of over 5% in November 2025.

Read more »

Man holds Canadian dollars in differing amounts
Energy Stocks

Invest $10,000 in This Dividend Stock for $823 in Passive Income

| Jitendra Parashar

With one of the highest dividend yields on the TSX, this top dividend stock is proving that steady income and…

Read more »

Map of Canada with city lights illuminated
Energy Stocks

TFSA Investors: This 4.4% Dividend Stock is Perfect for Tax-Free Passive Income

| Adam Othman

This Canadian dividend stock has a 50+ year track record for dividend hikes, making it an excellent part of your…

Read more »

Canadian Dollars bills
Energy Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

| Aditya Raghunath

Down almost 30% from all-time highs, Tourmaline Oil is a TSX dividend stock that trades at an attractive valuation right…

Read more »

Middle aged man drinks coffee
Energy Stocks

1 Magnificent Canadian Stock Down 17% to Buy and Hold Forever

| Amy Legate-Wolfe

Northland Power’s dividend cut stung, but its 2030 growth plan could turn today’s slump into opportunity, if management delivers.

Read more »

oil pump jack under night sky
Energy Stocks

Passive Income: Is Enbridge Stock Still a Buy for its Dividend Yield?

| Andrew Walker

Enbridge offers an attractive dividend yield and continues to grow.

Read more »

diversification and asset allocation are crucial investing concepts
Energy Stocks

Is Suncor Stock a Buy, Sell, or Hold for 2026?

| Karen Thomas, MSc, CFA

The momentum in Suncor's stock price has been driven by a relentless focus on value creation. Will 2026 see more…

Read more »

man looks worried about something on his phone
Energy Stocks

Is Cameco Stock Still a Buy?

| Karen Thomas, MSc, CFA

Will the growing momentum in the nuclear industry be enough to propel nuclear energy stock Cameco even higher?

Read more »

monthly calendar with clock
Energy Stocks

6.3% Dividend Yield? I’m Buying This Monthly Passive-Income Stock in Bulk

| Brian Paradza, CFA

I'd aggressively buy Whitecap Resources (WCP) stock for its safe 6.3% monthly yield, exploding cash flows from new synergies, and…

Read more »

a person watches stock market trades
Energy Stocks

Up 70% in 7 Months! Is it Too Late to Invest in Suncor Energy Stock?

| Karen Thomas, MSc, CFA

Suncor Energy is well-positioned as the company continues to create value through efficiencies and better asset utilization.

Read more »

Dam of hydroelectric power plant in Canadian Rockies
Energy Stocks

If Go-Go Growth Is Hitting the Top, I’d Buy These Safer Stocks Instead

| Joey Frenette

Hydro One (TSX:H) stock is a great way to improve your portfolio's defensive positioning amid market volatility.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

1 No-Brainer Energy Stock to Buy With $500 Right Now

| Aditya Raghunath

Down 43% from all-time highs, Alvopetro Energy offers you significant upside potential in November 2025.

Read more »

Canada day banner background design of flag
Energy Stocks

2 Domestic Stocks the Rest of the World Hasn’t Caught Onto – Yet

| Chris MacDonald

Let's dive into two of the best Canadian stocks global investors are clearly overlooking right now, why that's the case,…

Read more »

Board Game, Chess, Chess Board, Chess Piece, Hand
Energy Stocks

Should Investors Dump Enbridge Stock and Buy This Dividend Knight Instead?

| Amy Legate-Wolfe

Enbridge’s growth and heavy debt raise concerns, while Brookfield Infrastructure offers diversified assets, healthier financing, and steadier distribution growth.

Read more »

man looks worried about something on his phone
Energy Stocks

Best Stock to Buy Right Now: TC Energy vs Enbridge

| Andrew Button

Enbridge (TSX:ENB) and TC Energy (TSX:TRP) are two similar energy companies... which is the better buy?

Read more »

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Energy Stocks

Why Fortis Could Be the Best Canadian Stock in the Market Right Now

| Chris MacDonald

Here's why I think that even after a decade of being bullish on Fortis (TSX:FTS), this is a stock that's…

Read more »