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

These 2 Energy Stocks Just Raised Their Dividends by 6-8%

| Joseph Solitro

Capital Power Corp. (TSX:CPX) and TransAlta Renewables Inc. (TSX:RNW) just raised their dividends by 6-8%. Should you buy one today?…

Read more »

Dividend Stocks

Is This Dividend-Growth Stock a Buy After an 8% Plunge?

| Haris Anwar

Here is why ATCO Ltd. (TSX:ACO.X) shares are a good buy for investors looking to add a quality dividend-growth stock in…

Read more »

Energy Stocks

Looking for Signs of a Strengthening Canadian Economy?

| Karen Thomas, MSc, CFA

Take a look at Mullen Group Ltd.’s (TSX:MTL) second-quarter results.

Read more »

The Motley Fool
Energy Stocks

Crescent Point Energy Corp. or Teck Resources Ltd.: Which Is a Better Bet Today?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) and Teck Resources Ltd. (TSX:TECK.B)(NYSE:TECK) are two of Canada's top resource stocks. Should one be…

Read more »

The Motley Fool
Energy Stocks

Is Cenovus Energy Inc. or Suncor Energy Inc. Attractive Right Now?

| Andrew Walker

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) are two of Canada's top oil sands producers. Is one a…

Read more »

Energy Stocks

Baytex Energy Corp. Surges 15% in 2 Days: Time to Buy?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is moving higher. Is the sell-off finally over?

Read more »

The Motley Fool
Dividend Stocks

Investors Need to Consider These High-Dividend-Yielding Stocks

| Ryan Goldsman

With a very low beta of 0.31, shares of Inter Pipeline Ltd (TSX:IPL) may be ready for a major catalyst…

Read more »

The Motley Fool
Dividend Stocks

2 Energy Stocks That Can Go Much Higher

| Kay Ng

Can you stand volatility? If so, Enerplus Corp. (TSX:ERF)(NYSE:ERF) and its peer may deliver tremendous upside for you.

Read more »

The Motley Fool
Energy Stocks

Commodity Investors: Should You Buy Suncor Energy Inc. or Teck Resources Ltd.?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Teck Resources Ltd. (TSX:TECK.B)(NYSE:TECK) are two of Canada's top commodity stocks. Is one a better…

Read more »

The Motley Fool
Dividend Stocks

Income Investors: This Dividend Has Doubled in 5 Years

| David Jagielski

If you can only invest in one dividend stock, make it Enbridge Inc. (TSX:ENB)(NYSE:ENB).

Read more »

The Motley Fool
Energy Stocks

Why Imperial Oil Ltd. Fell 3.1% on Friday

| Joseph Solitro

Imperial Oil Ltd.'s (TSX:IMO)(NYSE:IMO) stock fell 3.1% following its Q2 earnings release. Should you buy on the dip? Let’s find…

Read more »

The Motley Fool
Dividend Stocks

TransCanada Corporation’s Adjusted Q2 EPS Jumps 46.2%: Buy Now?

| Joseph Solitro

TransCanada Corporation (TSX:TRP)(NYSE:TRP) announced its Q2 results on Friday, but its stock has remained flat. Should you buy now? Let’s…

Read more »

Dividend Stocks

Why Fortis Inc. Rose 1% on Friday

| Joseph Solitro

Fortis Inc. (TSX:FTS)(NYSE:FTS) released its Q2 results on Friday, and its stock responded by rising about 1%. Can it continue…

Read more »

The Motley Fool
Dividend Stocks

TransCanada Corporation Continues to Post Strong Earnings With its Latest Quarter

| David Jagielski

TransCanada Corporation (TSX:TRP)(NYSE:TRP) has spent a lot of money on long-term projects, and the result is long-term stability.

Read more »

electric power transmission
Dividend Stocks

Say on Pay: Is Hydro One Ltd. Treating Shareholders and the Public Fairly?

| Jason Phillips

Hydro One Ltd.'s (TSX:H) CEO makes almost $4.5 million a year in salary and bonuses, far beyond that paid to…

Read more »

The Motley Fool
Dividend Stocks

These 2 Stocks Are Ridiculously Cheap

| Jason Phillips

Bargain-hunters take note: Valeant Pharmaceuticals Intl Inc. (TSX:VRX)(NYSE:VRX) went “from the outhouse to the penthouse, and back to the outhouse…

Read more »

The Motley Fool
Dividend Stocks

Altagas Ltd.: Just How Safe Is this 7% Yield?

| Jason Phillips

Altagas Ltd. (TSX:ALA) is a desirable candidate for a dividend investors with its 7.05% yield. Can the company sustain the…

Read more »

Dividend Stocks

Retirees: A Top Dividend-Growth Stock for Your Portfolio

| Haris Anwar

Here is why Emera Inc. (TSX:EMA) is a great dividend-growth stock for your retirement portfolio.

Read more »

The Motley Fool
Energy Stocks

Should Suncor Energy Inc. Be in Your Portfolio Today?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) offers a conservative way to play the producer segment of the oil market. Is this the…

Read more »

The Motley Fool
Energy Stocks

Crescent Point Energy Corp. Down 50% YTD.: Is There Upside?

| Jacob Donnelly

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) looks like it has upside, but don't get tricked. This company is suffering.

Read more »

Dividend Stocks

2 High-Yield Energy Stocks With Double-Digit Upside Potential

| Kay Ng

If you’re feeling adventurous for outsized gains and yields, consider Vermilion Energy Inc. (TSX:VET)(NYSE:VET) and another stock today.

Read more »

Dividend Stocks

Cenovus Energy Inc.’s Strong Q2 Results Could Send the Stock Skyrocketing

| David Jagielski

Cenovus Energy Inc (TSX:CVE)(NYSE:CVE) has posted yet another strong quarter. It may finally be time to buy the stock again.

Read more »

Dividend Stocks

Altagas Ltd. Reports Solid Q2 Results, Raises Outlook: Time to Buy?

| Joseph Solitro

Altagas Ltd. (TSX:ALA) released its Q2 results and raised its outlook this morning, but its stock has remained relatively flat.…

Read more »

The Motley Fool
Dividend Stocks

RRSP Investors: 2 Oversold Canadian Stocks to Consider for the Next 20 Years

| Andrew Walker

Here's why Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) deserve a closer look today.

Read more »

The Motley Fool
Dividend Stocks

Suncor Energy Inc. Continues to Grow in Q2 Earnings and Is a Definite Buy

| David Jagielski

Suncor Energy Inc. (TSX:SU)(NYSE:SU) continues to pump out strong quarterly results, and there are plenty of good reasons for you…

Read more »

The Motley Fool
Dividend Stocks

Why Capital Power Corp. Surged 4.7% on Wednesday

| Joseph Solitro

Capital Power Corp. (TSX:CPX) released its Q2 results on Wednesday, and its stock reacted by rallying 4.7%. Should you buy…

Read more »

The Motley Fool
Energy Stocks

Calfrac Well Services Ltd. Sees Revenue Double in Q2

| David Jagielski

Calfrac Well Services Ltd. (TSX:CFW) posted an impressive Q2, but has it turned a corner?

Read more »

The Motley Fool
Energy Stocks

Contrarian Investors: Should Crescent Point Energy Corp. or Cenovus Energy Inc. Be in Your Portfolio?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) and Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) are trading near their multi-year lows. Is one an attractive…

Read more »

calm, no emotion
Dividend Stocks

3 Reasons the Bank of Canada Is Likely to Be Accommodating — for Now

| Chris MacDonald

Why companies such as Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) may not be such a bad long-term bet after all.

Read more »

Dividend Stocks

3 Stocks Near 52-Week Lows: Time to Buy?

| David Jagielski

Superior Plus Corp. (TSX:SPB) is recently coming off a 52-week low, but is it likely to rebound?

Read more »

The Motley Fool
Dividend Stocks

Altagas Ltd. vs. Fortis Inc.: Which 1 Is Better for Dividend Investors?

| Haris Anwar

Should dividend-hungry investors buy Altagas Ltd. (TSX:ALA) or Fortis Inc. (TSX:FTS)(NYSE:FTS)?

Read more »

Dividend Stocks

Young Savers: 4 Top Dividend Stocks for Your TFSAs

| Haris Anwar

Stocks such as Royal Bank of Canada (TSX:RY)(NYSE:RY) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) are great picks for your TFSA.

Read more »

Dividend Stocks

Which Is the Better Buy: Baytex Energy Corp. or Crescent Point Energy Corp.?

| David Jagielski

Crescent Point Energy Corp.'s (TSX:CPG)(NYSE:CPG) stock price has taken a dive this year, but has it found the bottom?

Read more »

The Motley Fool
Energy Stocks

Should Encana Corp. Be in Your Portfolio?

| Demetris Afxentiou

Encana Corp. (TSX:ECA)(NYSE:ECA) announced second-quarter results that surpassed expectations. Does this make the company a buy?

Read more »

The Motley Fool
Dividend Stocks

New Investors: 2 Canadian Dividend Stocks to Start Your RRSP Portfolio

| Andrew Walker

Here's why Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) and Fortis Inc. (TSX:FTS)(NYSE:FTS) might be worth a look today.

Read more »

The Motley Fool
Dividend Stocks

High-Yield Investors: 2 Monthly Income Stocks Paying 6.5-7%

| Andrew Walker

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

Read more »

pipeline
Energy Stocks

Can TransCanada Corporation Deliver on 10% Yearly Dividend Increases?

| Jacob Donnelly

TransCanada Corporation (TSX:TRP)(NYSE:TRP) expects to grow the dividend by 10% a year, and it probably can thanks to its strong…

Read more »

The Motley Fool
Dividend Stocks

Income Investors: These Dividend Stocks Are Poised to Hike Payouts

| Haris Anwar

Enbridge Inc. (TSX:ENB)(NYSE:ENB), Fortis Inc. (TSX:FTS)(NYSE:FTS), Royal Bank of Canada (TSX:RY)(NYSE:RY), and Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) are dividend stocks…

Read more »

The Motley Fool
Energy Stocks

Hydro One Ltd. Just Made a Massive Acquisition

| Demetris Afxentiou

Hydro One Ltd. (TSX:H) announced the acquisition of U.S.-based Avista Corp. that will make the company one of the largest…

Read more »

Dividend Stocks

Diversify and Get Dividends With These 3 Stocks

| David Jagielski

First National Financial Corp. (TSX:FN) and these two other stocks offer strong dividends of over 6% annually and allow you…

Read more »