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

Dividend Stocks

No Need to Fear Rising Interest Rates With These 2 Dividend-Growth Stars

| Kay Ng

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and another stock will fare well against rising interest rates. Here's why.

Read more »

The Motley Fool
Energy Stocks

Crescent Point Energy Corp. vs. Suncor Energy Inc.: Which Stock Is More Attractive Today?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) are popular names in the energy sector. Is one a…

Read more »

Dividend Stocks

Retirees: 2 Low-Risk Utility Stocks With Great Dividends

| David Jagielski

Fortis Inc. (TSX:FTS)(NYSE:FTS) and this other stock can provide your portfolio with a lot of stability and dividends.

Read more »

Dividend Stocks

2 High-Yield Stocks With Strong Dividend Growth

| Andrew Walker

Here's why Enbridge Inc. (TSX:ENB)(NYSE:ENB) and TransAlta Renewables Inc. (TSX:RNW) might be worth a closer look today.

Read more »

caution
Dividend Stocks

Caution: 3 Types of Stocks You Should Not Buy and Hold

| Kay Ng

Certain stocks, including Teck Resources Ltd. (TSX:TECK.B)(NYSE:TECK), require special attention. Here’s why.

Read more »

Dividend Stocks

Growth Investors: 2 High-Growth Stocks to Add to Your Portfolio

| David Jagielski

New Flyer Industries Inc. (TSX:NFI) and Northland Power Inc. (TSX:NPI) have seen tremendous sales growth over the years and could be…

Read more »

Dividend Stocks

TFSA Investors: The 5 Best Dividend Stocks Are Cheap

| Haris Anwar

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and RioCan Real Estate Investment Trust (TSX:REI.UN) are among the best dividend stocks that offer attractive valuations.

Read more »

The Motley Fool
Energy Stocks

Suncor Energy Inc.: A Strong Quarter and Room for More Growth

| Jacob Donnelly

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is a low-cost producer of oil which should continue to grow its business and boost its…

Read more »

hydroelectricity facility
Dividend Stocks

Generate Clean Energy With This High-Yielding Renewable Company

| Jacob Donnelly

Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) had an amazing second quarter, and I expect this to improve as other projects come online.…

Read more »

The Motley Fool
Dividend Stocks

Is it Safe to Invest in Oil and Gas Companies Again?

| David Jagielski

Why it might be a good time to buy Encana Corp. (TSX:ECA)(NYSE:ECA) and this other oil and gas company.

Read more »

The Motley Fool
Energy Stocks

Get a 4% Yield With TransCanada Corporation

| Jacob Donnelly

TransCanada Corporation (TSX:TRP)(NYSE:TRP) pays a strong yield, and I see no reason why it won't continue to pay strong dividends…

Read more »

The Motley Fool
Dividend Stocks

2 High-Yield Dividend Stocks Offering up to 8%

| Haris Anwar

RioCan Real Estate Investment Trust (TSX:REI.UN) and Altagas Ltd. (TSX:ALA) are two high-yielding dividend stocks for investors willing to stomach…

Read more »

pipeline
Dividend Stocks

Which Stock Is the Better Buy: Pembina Pipeline Corp. or Inter Pipeline Ltd.?

| David Jagielski

Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) and Inter Pipeline Ltd. (TSX:IPL) are both trading near 52-week lows, but which stock has more…

Read more »

Dividend Stocks

TFSA Investors: Load Up on These High-Growth Dividends to Offset Interest Rate Hikes

| David Jagielski

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and these four other growing dividend stocks can be great additions to your TFSA.

Read more »

The Motley Fool
Energy Stocks

2 Energy Stocks to Consider for Long-Term Income

| Demetris Afxentiou

TransAlta Renewables Inc. (TSX:RNW) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) offer investors great growth and steady, growing dividends that can provide…

Read more »

Dividend Stocks

2 Reliable Dividend Stocks That Look Oversold

| Andrew Walker

Here's why Bank of Montreal (TSX:BMO)(NYSE:BMO) and one other top Canadian dividend-growth stock might be attractive right now.

Read more »

oil, petroleum, refinery
Dividend Stocks

2 Energy Stocks With Big Dividends and Colossal Upside

| Kay Ng

Can Torc Oil and Gas Ltd. (TSX:TOG) and Cardinal Energy Ltd. (TSX:CJ) maintain their 4-10% dividend yields as interest rates…

Read more »

The Motley Fool
Energy Stocks

Cenovus Energy Inc. and Crescent Point Energy Corp. Are Racing to the Bottom

| Joey Frenette

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) keep falling into the abyss. Here's what contrarians should be…

Read more »

Dividend Stocks

Should You Buy Suncor Energy Inc. Below $40?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is Canada's largest integrated energy company. Is it time to buy?

Read more »

dividends
Energy Stocks

Does This Company’s 7% Dividend Yield Make it a Good Buy?

| Susan Portelance

Does this company's 7% dividend yield make it a good buy? Pattern Energy Group Inc. (TSX:PEGI)(NASDAQ:PEGI) might be the stock…

Read more »

Dividend Stocks

Enbridge Inc. Really Deserves a Spot in Your TFSA

| Joey Frenette

Enbridge Inc. (TSX:ENB)(NYSE:ENB) is the dividend-growth stock that keeps on giving. Here's why it's time to do your TFSA a…

Read more »

The Motley Fool
Dividend Stocks

Monthly Income: 2 Dividend-Growth Stocks to Buy Today

| Haris Anwar

Inter Pipeline Ltd. (TSX:IPL) and First National Financial Corp. (TSX:FN) are two dividend-growth stocks for your monthly income portfolio.

Read more »

Dividend Stocks

TSX Composite Index Dips Below 15,000: Which Stocks Should You Buy?

| Andrew Walker

Here's why Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) should be on your radar.

Read more »

The Motley Fool
Dividend Stocks

How to Earn a Secure 5-6% Dividend Yield From Renewable Energy

| Neha Chamaria

Why dividend investors can rely on Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) for high yields.

Read more »

Dividend Stocks

Retirees: 2 High-Yield Monthly Income Stocks for Your TFSA

| Andrew Walker

Here's why RioCan Real Estate Investment Trust (TSX:REI.UN) and Inter Pipeline Ltd. (TSX:IPL) might be attractive today.

Read more »

Dividend Stocks

Retirement Income: 5 Dividend-Growth Stocks to Buy Before You Retire

| Haris Anwar

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) are some of the best dividend-growth stocks for your retirement income.

Read more »

electric power transmission
Dividend Stocks

Why More Stormy Weather Is in the Forecast for Hydro One Ltd.

| Chris MacDonald

Here's why I believe the storms that affected Hydro One Ltd.'s (TSX:H) share price are unlikely to cease any time soon.

Read more »

The Motley Fool
Energy Stocks

TFSA Investors: Why You May Want to Consider High-Yield Renewable Energy Stocks as Interest Rates Increase

| Joey Frenette

Here's why investors should consider high-yield renewable energy stocks such as Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP), even as interest rates…

Read more »

Dividend Stocks

Is Altagas Ltd.’s 7.5% Dividend Yield Safe?

| Haris Anwar

Altagas Ltd. (TSX:ALA) is offering an attractive 7.5% dividend yield. Is this the time right for investors to take advantage…

Read more »

Dividend Stocks

Enbridge Inc.’s Dividend and Growth Look Attractive

| Kay Ng

Get a ~4.9% yield and growth from Enbridge Inc. (TSX:ENB)(NYSE:ENB) today.

Read more »

think, plan, and act to work towards your financial goals
Dividend Stocks

Contrarian Investors: Is Baytex Energy Corp. or Cameco Corp. a Better Bet?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) and Cameco Corp. (TSX:CCO)(NYSE:CCJ) remain under pressure. Is one about to bounce back?

Read more »

The Motley Fool
Energy Stocks

Should You Own Suncor Energy Inc. or Toronto-Dominion Bank in Your TFSA Retirement Fund?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Toronto-Dominion Bank (TSX:TD)(NYSE:TD) are two of Canada's top companies. Is one a better bet today?

Read more »

The Motley Fool
Dividend Stocks

Is it Time to Buy Inter Pipeline Ltd. for its High Yield?

| Kay Ng

Should you buy Inter Pipeline Ltd. (TSX:IPL) for its ~7% yield?

Read more »

The Motley Fool
Energy Stocks

1 Oil & Gas CEO Has a Harsh Warning for the Rest of the Industry

| Motley Fool Staff

Schlumberger CEO Paal Kibsgaard thinks the industry is headed for tough times if current trends continue.

Read more »

The Motley Fool
Dividend Stocks

2 Attractive Dividend Stocks That Could Double Your Investment

| Haris Anwar

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and First National Financial Corp. (TSX:FN) are two attractive dividend stocks to double your investment.

Read more »

The Motley Fool
Energy Stocks

Contrarian Investors: Is Crescent Point Energy Corp. Attractive Today?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is hitting new lows. Is the pullback overdone?

Read more »

Dividend Stocks

3 Stocks Trading Below Book Values That Could Be Bargains

| David Jagielski

Cameco Corp. (TSX:CCO)(NYSE:CCJ) and these two other stocks could see a lot of upside if commodity prices improve.

Read more »

wind generation facility
Dividend Stocks

Have You Considered Innergex Renewable Energy Inc.?

| Demetris Afxentiou

Innergex Renewable Energy Inc. (TSX:INE) provides investors with a means to invest in a growing renewable energy company with a…

Read more »

oil, petroleum, refinery
Dividend Stocks

Pason Systems Inc. Turns Free Cash Flow Positive and Has a 4% Dividend Yield

| Karen Thomas, MSc, CFA

Pason Systems Inc.'s (TSX:PSI) second-quarter results show improvement in activity, translating to strong financial results.

Read more »

Dividend Stocks

2 Interesting Ways to Play Bank of Canada Interest Rate Increases

| Chris MacDonald

Here's how to invest in companies such as Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) and Fortis Inc. (TSX:FTS)(NYSE:FTS) in today's rising interest rate…

Read more »