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

The Motley Fool
Dividend Stocks

Cenovus Energy Inc. Shares Down 8%: What Should You Do?

| Kay Ng

Should you invest in Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) or something less risky?

Read more »

Energy Stocks

Cenovus Energy Inc.: When Will the Bleeding Stop?

| Joey Frenette

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) is crashing into the abyss. Should you take a chance on this beaten-up name?

Read more »

Dividend Stocks

Fortis Inc.: Is This the Right Dividend Stock to Buy?

| Jacob Donnelly

Fortis Inc. (TSX:FTS)(NYSE:FTS) is a fantastic stock with predictable income and strong growth. However, waiting for a 0.5% higher yield…

Read more »

The Motley Fool
Energy Stocks

Should You Invest in a Lump Sum or in Small Bites?

| Kay Ng

You should change your buying strategy for different stocks and situations. For energy stocks such as Inter Pipeline Ltd. (TSX:IPL),…

Read more »

The Motley Fool
Dividend Stocks

RRSP Investors: 2 High-Yield Dividend Stocks I’d Buy Today

| Andrew Walker

Altagas Ltd. (TSX:ALA) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) offer above-average yield and strong dividend-growth guidance.

Read more »

electric power transmission
Dividend Stocks

Now Is Not the Best Time to Buy Fortis Inc.

| Kay Ng

If now is not the time, when should you consider Fortis Inc. (TSX:FTS)(NYSE:FTS)?

Read more »

Dividend Stocks

What Should You Do in a Lofty Market?

| Kay Ng

In today's lofty market, you can buy reasonably priced stocks such as Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ).

Read more »

Dividend Stocks

Here’s How You Get Motley Fool Dividend Investor Canada Picks at a Discount!

| Taylor Muckerman

Since January 2017, the Motley Fool Dividend Investor Canada service has made it its mission to provide Canadian investors with…

Read more »

Dividend Stocks

Stock Newsletters: Motley Fool Stock Advisor Canada vs. Dividend Investor Canada

| Motley Fool Staff

One of the primary goals of any investor who buys stocks should be to beat the broader market's performance. But…

Read more »

Energy Stocks

Suncor Energy Inc.: Time to Buy the Pullback?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is down 10% in the past month. Should you own this stock?

Read more »

Dividend Stocks

What is Motley Fool Dividend Investor Canada?

| Motley Fool Staff

Everything you want to know about Dividend Investor Canada, a stock-picking service focusing on top dividend-paying stocks from The Motley…

Read more »

Dividend Stocks

What is Motley Fool Stock Advisor Canada?

| Motley Fool Staff

Everything you want to know about Stock Advisor Canada, a stock-picking service focusing on high-potential stocks from The Motley Fool.

Read more »

Dividend Stocks

Here’s How You Get Motley Fool Stock Advisor Canada Picks at a Discount!

| Motley Fool Staff

Since 2013, the Motley Fool Stock Advisor Canada service has made it its mission to provide investors with a stream…

Read more »

Energy Stocks

Is More Pain in Store for Canadian Natural Resources Limited?

| Joey Frenette

Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ) took a hit on the chin. Is it time to throw in the towel or…

Read more »

pipeline
Energy Stocks

Like Dividend Raises? Buy TransCanada Corporation

| Joey Frenette

Here's why TransCanada Corporation (TSX:TRP)(NYSE:TRP) will continue to be a dividend-growth king over the next few years. Is it time…

Read more »

The Motley Fool
Dividend Stocks

4 Stocks With Dividend Yields Over 4%

| Stephanie Bedard-Chateauneuf, MBA

Looking for high-yield stocks? Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM), Telus Corporation (TSX:T)(NYSE:TU), Emera Inc. (TSX:EMA), and BCE Inc. (TSX:BCE)(NYSE:BCE)…

Read more »

The Motley Fool
Energy Stocks

Crescent Point Energy Corp.: Is the Sell-Off Now Overdone?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) just hit a new 12-month low. Is it time to buy?

Read more »

Dividend Stocks

2 Energy Stocks I Bought Recently for Different Reasons

| Kay Ng

You may get more than just dividends from Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Vermilion Energy Inc. (TSX:VET)(NYSE:VET). Learn more.

Read more »

The Motley Fool
Energy Stocks

Baytex Energy Corp.: Next Stop, $5 or 50 Cents?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is attracting contrarian investors. Is this the right time to step in and buy?

Read more »

offshore wind generation
Energy Stocks

Should You Add This 6%-Yielding Renewable Energy Stock to Your Portfolio?

| Jacob Donnelly

Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) is a smart investment because of its organic and acquisition-driven growth.

Read more »

Dividend Stocks

3 of the Safest Yields Over 3.5% for Every RRSP Investor

| Chris MacDonald

Drum roll please ... My top three picks for RRSP Investors today are Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN), Fortis…

Read more »

Energy Stocks

Is the Potash Industry Set for a Rebound?

| Chris MacDonald

Potash Corporation of Saskatchewan Inc. (TSX:POT)(NYSE:POT) is one of the most powerful voices among its global peers in terms of…

Read more »

Energy Stocks

Is Enbridge Inc. on Pause?

| Ryan Goldsman

After an incredible 10-year run, investors in Enbridge Inc. (TSX:ENB)(NYSE:ENB) may need to reset expectations.

Read more »

Energy Stocks

Is it Time to Oil Up Your Portfolio?

| Chris MacDonald

Companies such as Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) have been big winners, seeing stock gains on hopes of a continued rebound…

Read more »

Dividend Stocks

Dividend Investors: 2 Reliable Canadian Stocks for Your RRSP portfolio

| Andrew Walker

Fortis Inc. (TSX:FTS)(NYSE:FTS) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) are two of Canada's top dividend stocks. Is one more attractive today?

Read more »

The Motley Fool
Dividend Stocks

How Much Credence Should Investors Give Price Targets?

| Chris MacDonald

Adjusting target prices (discounting or ascribing a premium) is a safer way to view target prices. I use Algonquin Power…

Read more »

The Motley Fool
Energy Stocks

What Can Investors Expect From Suncor Energy Inc.?

| Jacob Donnelly

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is a low-cost, completely integrated oil company that can stomach fluctuations in oil, making it one…

Read more »

oil, petroleum, refinery
Dividend Stocks

3 Low-Risk Energy Stocks With Promising Upside

| Kay Ng

Here's why Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ) and two other stocks are low-risk investments in the energy space.

Read more »

electric power transmission
Energy Stocks

Has Growth Dried Up at Hydro One Ltd.?

| Joey Frenette

Hydro One Ltd. (TSX:H) is a great defensive stock with a virtual monopoly, but headwinds may hurt dividend growth going…

Read more »

Dividend Stocks

Enbridge Inc.: Buy This Dividend Juggernaut

| Jacob Donnelly

Enbridge Inc. (TSX:ENB)(NYSE:ENB) had a small pullback, presenting an opportunity for investors to get a strong yield on purchase and…

Read more »

Energy Stocks

3 Stocks for Warren Buffett Fans

| Motley Fool Staff

These three promising companies share several traits that the Oracle of Omaha loves.

Read more »

Energy Stocks

Small or Large Energy Stocks: Which Is Better?

| Kay Ng

Should you invest in a small or large stock for energy exposure? Here’s a discussion of Suncor Energy Inc. (TSX:SU)(NYSE:SU)…

Read more »

The Motley Fool
Energy Stocks

Oil Investors: Penn West Petroleum Ltd. or Baytex Energy Corp.?

| Andrew Walker

Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE) and Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) are taking a beating. Is one an attractive contrarian pick?

Read more »

The Motley Fool
Energy Stocks

Kinder Morgan Canada Ltd. Tries to Scale Mountain After IPO Setback

| Will Ashworth

The timing wasn’t the best, but Kinder Morgan Canada Ltd. (TSX:KML) began trading May 30. It was down from the…

Read more »

The Motley Fool
Energy Stocks

Baytex Energy Corp. Dropped 9% Yesterday: Time to Buy?

| Chris MacDonald

Baytex Energy Corp.'s (TSX:BTE)(NYSE:BTE) share price continues to drop. Has the bleeding stopped, or will it continue?

Read more »

The Motley Fool
Energy Stocks

Crescent Point Energy Corp.: How Low Could it Go?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) continues to slide. Is the bottom in sight?

Read more »

Energy Stocks

Penn West Petroleum Ltd.: A Buy Under $2?

| Andrew Walker

Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE) plans to grow production by at least 10% in 2017. Is the recent sell-off overdone?

Read more »

Energy Stocks

1 Stock That Offers High Capital Appreciation and a High Yield

| Joey Frenette

If you're an income investor, you don't have to settle for little or no capital appreciation. Here's why you should…

Read more »

The Motley Fool
Energy Stocks

Contrarian Investors: Cameco Corp. vs. TransAlta Corporation

| Andrew Walker

Cameco Corp. (TSX:CCO)(NYSE:CCJ) and TransAlta Corporation (TSX:TA)(NYSE:TAC) are attracting contrarian interest. Is one a better bet?

Read more »

Dividend Stocks

Crescent Point Energy Corp.: Potential Value With Continued Risk

| Chris MacDonald

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is a very interesting name to consider in the current environment, considering the massive drop…

Read more »