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
Energy Stocks

Oil and Natural Gas Stocks Both Have Double-Digit Upside: Which Should You Buy?

| Adam Mancini

With oil prices just rocketing back into bull-market territory and natural gas prices already in a firm bull market, these…

Read more »

The Motley Fool
Dividend Stocks

The Case to Buy TransAlta Renewables Inc. Today

| Joseph Solitro

Are you looking for a great stock to add to your portfolio? If so, TransAlta Renewables Inc. (TSX:RNW) could be…

Read more »

The Motley Fool
Energy Stocks

Should You Own Encana Corporation or Baytex Energy Corp.?

| Andrew Walker

Encana Corporation (TSX:ECA)(NYSE:ECA) and Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) are surging again. Is one an attractive pick right now?

Read more »

The Motley Fool
Dividend Stocks

Attention Retirees: These Top Picks Offer Great Monthly Payouts

| Andrew Walker

Here's why A&W Revenue Royalties Income Fund (TSX:AW.UN) and Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) should be on your income radar.

Read more »

Dividend Stocks

RESP Investors: These 5% Dividend-Yielding Stocks Are Top of Their Class

| Scott Brandt

Inter Pipeline Ltd. (TSX:IPL) and Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) are among an elite class of companies that can boast dividend…

Read more »

The Motley Fool
Dividend Stocks

Dividend Investors: 2 Top Stocks to Help You Retire Rich

| Andrew Walker

Here's how stocks such as Royal Bank of Canada (TSX:RY)(NYSE:RY) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) can turn small initial investments…

Read more »

The Motley Fool
Energy Stocks

Up 17% This Summer: Can TransCanada Corporation Keep it Going?

| Will Ashworth

TransCanada Corporation (TSX:TRP)(NYSE:TRP), which is up 17% in the past three months alone, is one of only four TSX mega-caps…

Read more »

The Motley Fool
Energy Stocks

Should You Add Crescent Point Energy Corp. to Your Portfolio Today?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is moving higher again. Is it time to buy?

Read more »

Energy Stocks

Is Now the Time to Buy Baytex Energy Corp.?

| Matt Smith

Beaten-down oil producer Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) appears to be on the road to recovery.

Read more »

The Motley Fool
Dividend Stocks

Enbridge Inc. May Be Just the Thing Income Investors Need

| Jacob Donnelly

Because of its lucrative tollbooth-like business and diversified clean-energy production, the dividend is only going to grow at Enbridge Inc.…

Read more »

Dividend Stocks

RRSP Investors: 3 Great Dividend Stocks for the Next Decade

| Nelson Smith

Sleep well at night by stuffing your RRSP full of great stocks such as Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM),…

Read more »

The Motley Fool
Energy Stocks

Suncor Energy Inc. Takes a Flyer on Future Growth

| Matt DiLallo

Suncor Energy Inc. (TSX:SU)(NYSE:SU) bought a stake in the Rosebank project in the North Sea.

Read more »

Energy Stocks

3 Reasons to Buy Crescent Point Energy Corp.

| Matt Smith

Crescent Point Energy Corp.'s (TSX:CPG)(NYSE:CPG) latest results show that it will emerge from the oil slump in good shape.

Read more »

The Motley Fool
Dividend Stocks

Looking for +10% Growth in Emerging Markets? Look No Further Than TransCanada Corporation

| Scott Brandt

TransCanada Corporation (TSX:TRP)(NYSE:TRP) is becoming a primary beneficiary of the Mexican government’s recent implementation of a four-year, $411 billion plan…

Read more »

The Motley Fool
Dividend Stocks

Revealed: This Upcoming Mega-Trend Could Make You Rich

| Nelson Smith

Renewable energy will be massive. Play this trend with TransAlta Renewables Inc. (TSX:RNW), Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP), and Northland…

Read more »

The Motley Fool
Energy Stocks

3 Critical Numbers From Crescent Point Energy Corp.’s Q2 Report

| Matt DiLallo

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) had a solid second quarter.

Read more »

The Motley Fool
Energy Stocks

3 Surprises From Penn West Petroleum Ltd.

| Matt Smith

Penn West Petroleum Ltd.'s (TSX:PWT)(NYSE:PWE) turnaround appears to have succeeded, leaving the company well positioned to unlock value for investors…

Read more »

The Motley Fool
Dividend Stocks

Investors: You Can’t Ignore These 3 Cheap Value Stocks

| Nelson Smith

Create a little value in your portfolio by adding Manulife Financial Corp. (TSX:MFC)(NYSE:MFC), Artis Real Estate Investment Trust (TSX:AX.UN), or…

Read more »

Energy Stocks

Why These 2 Natural Gas Names Could Have Over 30% Upside

| Adam Mancini

Oil may be dominating the headlines so far in 2016, but few are paying attention to natural gas, which has…

Read more »

The Motley Fool
Energy Stocks

Encana Corporation: Should You Own This Stock?

| Andrew Walker

Encana Corporation (TSX:ECA)(NYSE:ECA) is at a 12-month high. Is this a signal to buy?

Read more »

The Motley Fool
Energy Stocks

Contrarian Investors: Should Crescent Point Energy Corp. Be a Top Pick?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is doing a good job of navigating the oil rout. Is this the time to…

Read more »

The Motley Fool
Dividend Stocks

Dividend Investors: Can You Count On These Massive Yields?

| Nelson Smith

Can Veresen Inc. (TSX:VSN), Corus Entertainment Inc. (TSX:CJR.B), Cominar Real Estate Investment Trust (TSX:CUF.UN), and IGM Financial Inc. (TSX:IGM) all…

Read more »

The Motley Fool
Dividend Stocks

Dividend Investors: Is it Time to Buy Inter Pipeline Ltd.?

| Andrew Walker

Inter Pipeline Ltd. (TSX:IPL) just made a big acquisition. Is that a good thing for investors?

Read more »

The Motley Fool
Energy Stocks

2 Big Surprises From Pengrowth Energy Corp.’s 2nd-Quarter Report

| Matt DiLallo

Pengrowth Energy Corp. (TSX:PGF)(NYSE:PGH) had some interesting surprises for investors this quarter.

Read more »

Energy Stocks

Baytex Energy Corp. vs. Penn West Petroleum Ltd.: Is 1 a Better Bet?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) and Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE) are fighting to survive the oil rout. Which one should…

Read more »

The Motley Fool
Energy Stocks

Fortis Inc. Is Not Your Typical Utility Stock

| Demetris Afxentiou

Fortis Inc. (TSX:FTS) remains one of the best utility stocks in the market with strong growth and dividend prospects for…

Read more »

Dividend Stocks

Are You Following These 3 Golden Rules of Investing?

| Nelson Smith

How my three golden investing rules led me to buy stocks such as Pizza Pizza Royalty Corp. (TSX:PZA) and TransAlta…

Read more »

Energy Stocks

3 Major Surprises From Penn West Petroleum Ltd. This Quarter

| Matt DiLallo

Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE) unveiled several pleasant surprises this quarter.

Read more »

The Motley Fool
Energy Stocks

Does Suncor Energy Inc. Have Any Upside Remaining?

| Adam Mancini

While WTI crude prices are down almost 16% since June 9, Suncor Energy Inc. (TSX:SU)(NYSE:SU) shares are actually up close…

Read more »

Energy Stocks

Should Enbridge Inc. or Bank of Montreal Be in Your RRSP?

| Andrew Walker

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Bank of Montreal (TSX:BMO)(NYSE:BMO) are two of Canada's top companies. Is one a better RRSP pick?

Read more »

The Motley Fool
Energy Stocks

Is Cameco Corporation Still a Good Investment?

| Demetris Afxentiou

Despite strong future demand for uranium, shares of Cameco Corporation (TSX:CCO)(NYSE:CCJ) continue to lack growth, prompting many investors to reconsider…

Read more »

The Motley Fool
Energy Stocks

Penn West Petroleum Ltd.: Is This Stock a Good Contrarian Bet?

| Andrew Walker

Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE) has avoided bankruptcy. Is it time to buy?

Read more »

The Motley Fool
Energy Stocks

Baytex Energy Corp. Goes Green: Buy This Smart Stock

| Scott Brandt

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) investors can relax knowing the company is taking pivotal steps to reduce its costs and mitigate…

Read more »

Energy Stocks

Imperial Oil Limited Is Crushing Exxon Mobil Corporation: Here’s How to Profit

| Ryan Vanzo

There are many reasons to believe Imperial Oil Limited (TSX:IMO)(NYSE:IMO) will continue to beat Exxon Mobil Corporation (NYSE:XOM).

Read more »

Energy Stocks

Will Encana Corporation Continue its Momentum?

| Ryan Vanzo

Encana Corporation (TSX:ECA)(NYSE:ECA) is currently in the sweet spot. Can costs remain low? Will natural gas prices continue higher?

Read more »

The Motley Fool
Dividend Stocks

Should You Buy TransCanada Corporation?

| Andrew Walker

TransCanada Corporation (TSX:TRP)(NYSE:TRP) has enjoyed some big gains this year. Is more upside on the way?

Read more »

The Motley Fool
Energy Stocks

Is the Worst Over for the Canadian Oil Sands?

| Matt DiLallo

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and MEG Energy Corp. (TSX:MEG) are mulling over new projects.

Read more »

The Motley Fool
Energy Stocks

$40 Oil Won’t Last: 4 Ways to Play the Coming Rebound

| Adam Mancini

Oil may be at US$41/bbl, but several factors will lead to an explosive rebound. You can play it with Crescent…

Read more »

The Motley Fool
Dividend Stocks

Retirees: Build Your Own Gold-Plated Pension With These 3 Dividend Stars

| Nelson Smith

Northview Apartment REIT (TSX:NVU.UN), Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA), and Brookfield Renewable Partners L.P. (TSX:BEP.UN)(NYSE:BEP) can really goose a retiree's income.

Read more »

The Motley Fool
Energy Stocks

Baytex Energy Corp.: Is This Stock Oversold?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is down 30% in the past two months. Is this an opportunity to buy?

Read more »