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

Energy Stocks

1 Renewable Energy Stock to Buy and Hold

| Jitendra Parashar

Here’s a top Canadian renewable energy stock you can buy in July 2023 to hold for the next decade.

Read more »

Energy Stocks

A Green Revolution in Canada: Investing in Renewable Energy Stocks

| Demetris Afxentiou

Investing in renewable energy stocks is a lucrative long-term opportunity for all investors. Here's two options to consider buying now.

Read more »

Energy Stocks

Better Buy: Enbridge Stock or Pembina Pipeline?

| Andrew Walker

Enbridge and Pembina Pipeline pay growing dividends with high yields.

Read more »

Energy Stocks

Boost Your Long-Term Wealth With These Green Energy Stocks

| Sneha Nahata

These green energy stocks are poised to deliver significant returns on the back of solid demand and growing capacity.

Read more »

Energy Stocks

Power Up Your Portfolio With This Top TSX Energy Stock

| Chris MacDonald

Here's why Cenovus (TSX:CVE) remains a top TSX energy stock investors should consider buying on weakness moving forward.

Read more »

Energy Stocks

Cenovus Stock: At the Top of its Game

| Karen Thomas, MSc, CFA

Cenovus stock continues to generate high returns, which will continue to improve, as transforms into an integrated oil and gas…

Read more »

oil and gas pipeline
Energy Stocks

Better Buy: Enbridge Stock or Pembina Pipeline?

| Robin Brown

Enbridge stock and Pembina Pipeline both have massive dividend yields, but which stock is better buy this summer?

Read more »

Energy Stocks

Is Enbridge Stock a Screaming Buy Below $50 a Share?

| Daniel Da Costa

Given Enbridge's resiliency, long-term growth potential and attractive dividend yield of 7.2%, it's one of the best stocks to buy…

Read more »

Energy Stocks

If You’d Invested $5,000 in Enbridge Stock in 2005, Here’s How Much You’d Have Today

| Kay Ng

Enbridge stock is now a mature, slow-growth, but big dividend stock. It could be a good investment.

Read more »

oil and natural gas
Energy Stocks

This Energy Stock Pays You Monthly and Currently Yields 8.4%

| Puja Tayal

Energy stocks have been on a decline in the last two months. Now is a good time to buy this…

Read more »

Energy Stocks

Better Buy: Suncor Stock or Canadian Natural Resources?

| Rajiv Nanjapla

Amid the recent pullback, let’s assess which among Suncor Energy and Canadian Natural Resources would offer excellent buying opportunities.

Read more »

Energy Stocks

Retirees: 2 Top TSX Stocks With Decades of Dividend Growth

| Andrew Walker

These top TSX dividend stocks have great track records of distribution growth.

Read more »

Energy Stocks

1 Dividend Behemoth I’d Choose Over RBC Stock

| Christopher Liew, CFA

A dividend behemoth in the energy sector with consistent dividend growth can be a better choice than Canada’s largest bank.

Read more »

Energy Stocks

This 8.26% Dividend King Pays Out Every Month

| Christopher Liew, CFA

A high-yield energy royalty company is the king of monthly dividend payers on the TSX.

Read more »

Energy Stocks

3 Renewable Energy Stocks to Buy and Hold

| Amy Legate-Wolfe

These renewable energy stocks remain down in 2023, but have a great chance at recovery in the next year or…

Read more »

Energy Stocks

This Canadian Utility Stock Is Positioned for Long-term Growth

| Christopher Liew, CFA

A top-tier Canadian utility stock is well-positioned for steady long-term growth with less volatility.

Read more »

Dog smiles with a big gold necklace
Energy Stocks

Top Canadian Dividend Stocks Yielding Over 7% in June 2023

| Joey Frenette

Enbridge stock and another dividend beast sporting a dividend yield north of the 7% mark.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

June Heatwave: Canadian Solar Stocks With Massive Upside Potential

| Vishesh Raisinghani

Solar stocks like TransAlta Renewables (TSX:RNW) should be on your radar, as green energy investments ramp up.

Read more »

Energy Stocks

The Future of Canadian Energy Stocks: Where to Invest Now

| Kay Ng

These two stocks are playing an important part in the transformation of the global energy transition. It's a good time…

Read more »

Energy Stocks

How Green Energy Players Are Making Big Waves in the Stock Market

| Christopher Liew, CFA

Green energy players are making waves in the stock market as more investors go green and become socially responsible.

Read more »

Energy Stocks

Income on Sale: Enbridge is a High-Yield Stock Going for a Bargain Price!

| Joey Frenette

Enbridge stock is a mega high yielder on the TSX Index that Canadians should strongly consider nibbling at in July…

Read more »

Energy Stocks

Why Canadians Should Keep an Eye on These Renewable Energy Stocks

| Christopher Liew, CFA

Canadians should keenly watch renewable energy stocks because of the rapidly growing industry and long-term earning potential.

Read more »

oil and gas pipeline
Energy Stocks

If You’d Invested $5,000 in Pembina Pipeline Stock in 2013, Here’s How Much You’d Have Today

| Tony Dong, MSc, CETF®

Pembina's history has been a wild but rewarding ride for investors. Here's a breakdown.

Read more »

Energy Stocks

3 Stocks to Buy Today and Hold for the Next 5 Years

| Amy Legate-Wolfe

Pick up these TSX stocks today and you're sure to be very happy with your purchase five years from now.

Read more »

Energy Stocks

3 Cheap TSX Stocks I’d Buy Before the Bull Market Arrives

| Aditya Raghunath

Value investors can consider buying cheap TSX stocks such as Shawcor in June 2023. Let's see why.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Better Energy Buy: Suncor Stock or TC Energy?

| Andrew Walker

Suncor and TC Energy pay attractive dividends and now appear oversold.

Read more »

Energy Stocks

Is Now Actually the Right Time to Buy Brookfield Renewable Stock?

| Amy Legate-Wolfe

Brookfield Renewable (TSX:BEP.UN) stock just fell after its latest acquisition, but that wasn't even the worst part.

Read more »

Energy Stocks

Forecast: What’s Next for Canadian Oil Stocks?

| Andrew Button

Canadian oil stocks like Suncor Energy (TSX:SU) may be worth buying if oil dips below $65.

Read more »

Energy Stocks

Should You Buy CNQ Stock on the Next Pullback?

| Andrew Walker

Canadian Natural Resources has raised its dividend in each of the past 23 years.

Read more »

Utility, wind power
Energy Stocks

Unleash the Energy Sector: Investing in Canada’s Renewable Powerhouses

| Karen Thomas, MSc, CFA

Enbridge stock is one example of an energy stock that's positioned to benefit from the massive growth expected in the…

Read more »

Energy Stocks

3 Growth Stocks I’d Buy Before Any Other

| Amy Legate-Wolfe

These growth stocks may be rising higher and higher, but they're still a steal for long-term investors seeking a stock…

Read more »

Energy Stocks

This 1 Small Stock Has Real Potential to Explode by 2024

| Christopher Liew, CFA

A small-cap stock continues to outperform amid industry headwinds and could still explode if commodity prices and energy demand rebound…

Read more »

Utility, wind power
Energy Stocks

Boost Your Long-Term Wealth With These Green Energy Stocks

| Sneha Nahata

The strong demand and policy support will drive renewable energy stocks higher, making them attractive long-term investments.

Read more »

oil and natural gas
Energy Stocks

TFSA Investors: The Best TSX Energy Stocks for Fast-Growing Passive Income

| Aditya Raghunath

Investors looking to gain exposure to TSX energy stocks can consider buying shares of Enbridge, which pays shareholders a tasty…

Read more »

Energy Stocks

3 Canadian Energy Stocks With Insanely Fast-Growing Dividends

| Robin Brown

Do you want insanely fast-growing dividends? These three Canadian energy stocks are growing their dividends rapidly.

Read more »

oil and natural gas
Energy Stocks

Could Suncor Stock Soar Into 2024?

| Andrew Walker

Suncor has underperformed its peers in the past few years. Is a rebound on the way?

Read more »

A lake in the shape of a solar, wind and energy storage system in the middle of a lush forest as a metaphor for the concept of clean and organic renewable energy.
Energy Stocks

1 Energy Stock I’d Buy Over Enbridge Stock Right Now

| Amy Legate-Wolfe

Enbridge stock had its time in the sun, but after years of barely any share movement, I would go to…

Read more »

Energy Stocks

Better Buy: Enbridge Stock or TC Energy?

| Aditya Raghunath

Enbridge and TC Energy have delivered outsized gains to shareholders in the last 20 years. But which TSX energy stock…

Read more »

Dividend Stocks

2 Top Canadian Energy Stocks to Buy Right Now

| Adam Othman

Blue-chip TSX stocks like these two Canadian energy sector giants can help you generate substantial long-term wealth growth.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

2 Revolutionary Canadian Clean Energy Stocks to Power Your Portfolio

| Adam Othman

Going green is the energy industry’s future. Here are two Canadian energy stocks to own to become part of the…

Read more »