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

Why Friday Could Be Judgement Day for Canada’s Oil Producers

| Benjamin Sinclair

OPEC is expected to keep production levels constant. That's bad news for Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Imperial Oil Limited…

Read more »

The Motley Fool
Dividend Stocks

3 Inexpensive Stocks to Consider Buying Today

| Joseph Solitro

Are you in search of an inexpensive stock? If so, take a look at Fortis Inc. (TSX:FTS), George Weston Limited…

Read more »

The Motley Fool
Energy Stocks

Want to Bet on Oil? Sell Canadian Natural Resources Ltd. and Buy This Company

| Benjamin Sinclair

Canadian Natural Resources Ltd.'s (TSX:CNQ)(NYSE:CNQ) shares aren't as depressed as BlackPearl Resources Ltd.'s (TSX:PXX), even though the latter is less…

Read more »

The Motley Fool
Energy Stocks

Why Is Crescent Point Energy Corp. One of the Most Shorted TSX Stocks?

| Adam Mancini

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) saw a huge increase in short positions for the first half of May. Why is…

Read more »

The Motley Fool
Energy Stocks

Sorry Warren: Why I’m Not Adding Suncor Energy Inc. to My Portfolio

| Nelson Smith

Just because Warren Buffett owns more than 22 million shares of Suncor Energy Inc. (TSX:SU)(NYSE:SU) doesn't mean you should blindly…

Read more »

The Motley Fool
Energy Stocks

Back Up the Truck: Why Now Is a Great Time to Buy Inter Pipeline Ltd.

| Nelson Smith

Inter Pipeline Ltd. (TSX:IPL) is cheap and pays a 4.8% dividend. But those aren't the only reasons you should add…

Read more »

The Motley Fool
Dividend Stocks

Which Stock Is a Better Buy for Dividend Investors: Cenovus Energy Inc. or Crescent Point Energy Corp.?

| Robert Baillieul

Is Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) or Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) a better bet for income investors?

Read more »

The Motley Fool
Dividend Stocks

3 High-Yield Clean Energy Stocks to Buy Today

| Joseph Solitro

Are you looking to add a dividend stock to your portfolio? If so, take a look at these three clean…

Read more »

The Motley Fool
Dividend Stocks

3 Stocks With Yields up to 5.4% to Buy Today

| Joseph Solitro

Looking for a dividend-paying stock? If so, take a look at Veresen Inc. (TSX:VSN), Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI), and…

Read more »

Dividend Stocks

3 Reasons Why Emera Inc. Will Continue to Outperform the Market

| Joseph Solitro

Here are three reasons why you should consider investing in Emera Inc. (TSX:EMA) today.

Read more »

The Motley Fool
Dividend Stocks

TransCanada Corporation or Inter Pipeline Ltd.: Which Should You Buy Today?

| Joseph Solitro

Does TransCanada Corporation (TSX:TRP)(NYSE:TRP) or Inter Pipeline Ltd. (TSX:IPL) represent the better buy today?

Read more »

The Motley Fool
Energy Stocks

3 Reasons Why $50-60 Oil Is the New Normal

| Benjamin Sinclair

This doesn't bode well for shareholders of Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ).

Read more »

The Motley Fool
Energy Stocks

Encana Corporation: Should Investors Buy or Bail Out?

| Andrew Walker

Here's what you need to know before buying Encana Corporation (TSX:ECA)(NYSE:ECA).

Read more »

The Motley Fool
Energy Stocks

Canadian Oil Sands Ltd.: Promising Turnaround Candidate or Value Trap?

| Matt Smith

Despite some analysts claiming that struggling oil producer Canadian Oil Sands Ltd. (TSX:COS) is shaping up as a prime turnaround…

Read more »

The Motley Fool
Dividend Stocks

3 High-Yield Small-Cap Stocks to Consider Buying Today

| Joseph Solitro

Are you in search of a high-yielding small-cap stock? If so, take a look at Student Transportation Inc. (TSX:STB)(NASDAQ:STB), Bonterra…

Read more »

The Motley Fool
Energy Stocks

Canadian Natural Resources Ltd. Is Playing With Fire in Alberta

| Benjamin Sinclair

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) is taking a confrontational approach with the new NDP government. Will it backfire?

Read more »

The Motley Fool
Dividend Stocks

Dividend Investors: 3 Top Oil Stocks Yielding Up to 9.7%

| Robert Baillieul

Dividend investors should be buying Suncor Energy Inc. (TSX:SU)(NYSE:SU), TransCanada Corporation (TSX:TRP)(NYSE:TRP), and Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) on the…

Read more »

Dividend Stocks

3 Big Reasons to Add TransAlta Corporation to Your Portfolio Today

| Nelson Smith

TransAlta Corporation (TSX:TA)(NYSE:TAC) is cheap, pays a nice dividend, and is making some smart moves. Value investors should consider it…

Read more »

The Motley Fool
Energy Stocks

Enbridge Inc.: Is This Great Stock Worth the Inflated Price?

| Nelson Smith

Why investors in Enbridge Inc. (TSX:ENB)(NYSE:ENB) need to look past the company's sky-high 131x P/E ratio to see the potential…

Read more »

Dividend Stocks

3 Stocks With Dividend Yields Up to 5.8% to Buy Today

| Joseph Solitro

Searching for a dividend-paying investment? If so, take a look at Baytex Energy Corp. (TSX:BTE)(NYSE:BTE), Laurentian Bank of Canada (TSX:LB),…

Read more »

The Motley Fool
Energy Stocks

Value Investors: Check Out These Ridiculously Cheap Energy Stocks

| Nelson Smith

If you're a believer in crude's inevitable recovery, then look very closely at Canadian Oil Sands Ltd. (TSX:COS) and Penn…

Read more »

The Motley Fool
Dividend Stocks

What Crescent Point Energy Corp.’s Agreement to Buy Legacy Oil Means to Investors

| Kay Ng

The deal increases the safety of Crescent Point Energy Corp.’s (TSX:CPG)(NYSE:CPG) dividend. Investors could buy shares at or below $28.50…

Read more »

The Motley Fool
Energy Stocks

Why a Takeover of Canadian Oil Sands Ltd. Is Unlikely

| Adam Mancini

Canadian Oil Sands Ltd. (TSX:COS) has recently been subject to takeover rumours. Here's why they are likely just that.

Read more »

The Motley Fool
Energy Stocks

Is it Time to Buy TransCanada Corporation?

| Andrew Walker

Here's what investors need to know before they buy TransCanada Corporation (TSX:TRP)(NYSE:TRP).

Read more »

The Motley Fool
Energy Stocks

Husky Energy Inc. Is in a Rush to Boost Production Despite Weak Oil Prices

| Matt DiLallo

Husky Energy Inc. (TSX:HSE) finished up its Rush Lake projects two months ahead of schedule.

Read more »

The Motley Fool
Energy Stocks

Why Crescent Point Energy Corp. Plunged 5%

| Robert Baillieul

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is buying struggling rival Legacy Oil Plus Gas Inc. (TSX:LEG) in a deal that may…

Read more »

The Motley Fool
Energy Stocks

Why Crescent Point Energy Corp. Should Be Applauded

| Benjamin Sinclair

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is getting a great deal as it buys Legacy Oil Plus Gas Inc. (TSX:LEG).

Read more »

The Motley Fool
Dividend Stocks

3 Reasons to Buy Potash Corp./Saskatchewan Right Now

| Joseph Solitro

You should buy Potash Corp./Saskatchewan (TSX:POT)(NYSE:POT) for the following three reasons.

Read more »

Dividend Stocks

3 Dividend-Growth Stocks With Yields Over 4% to Buy Today

| Joseph Solitro

Are you searching for a dividend-paying stock with a track record of increasing its annual payment? If so, take a…

Read more »

The Motley Fool
Energy Stocks

3 Ways to Play the Heavy Oil Rally

| Adam Mancini

With heavy oil prices up nearly 80% since March, you can profit with producers like Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ),…

Read more »

The Motley Fool
Energy Stocks

Husky Energy Inc.: Take Advantage of the Energy Patch’s 35% Off Sale

| Nelson Smith

Shares of Husky Energy Inc. (TSX:HSE) are down more than 35% from their 52-week high. Here's why the company is…

Read more »

The Motley Fool
Dividend Stocks

2 Oversold Dividend-Growth Stocks for Your Income Portfolio

| Andrew Walker

Here's why investors should buy Fortis Inc. (TSX:FTS) and TransCanada Corporation (TSX:TRP)(NYSE:TRP) after the recent pullbacks.

Read more »

The Motley Fool
Dividend Stocks

3 Reasons Why Canadian Pacific Railway Limited Belongs in Your Portfolio

| Joseph Solitro

Here are three reasons why you should be a long-term buyer of Canadian Pacific Railway Limited (TSX:CP)(NYSE:CP) today.

Read more »

Dividend Stocks

3 Stocks With Dividend Yields of 4% or More to Buy Today

| Joseph Solitro

Are you looking for a dividend-paying investment? If so, take a look at Bonavista Energy Corp. (TSX:BNP), Inter Pipeline Ltd.…

Read more »

The Motley Fool
Energy Stocks

Why Canadian Oil Sands Ltd. Would Be Unlikely to Support a Takeover

| Adam Mancini

There has been plenty of talk about Canadian Oil Sands Ltd. (TSX:COS) being taken over. But would Canadian Oil Sands…

Read more »

The Motley Fool
Energy Stocks

Why Are Suncor Energy Inc.’s Shares So Expensive?

| Benjamin Sinclair

Suncor Energy Inc.'s (TSX:SU)(NYSE:SU) shares have gone up 16% over the last two years, even though oil prices have plummeted.

Read more »

The Motley Fool
Energy Stocks

Could Canadian Oil Sands Ltd. Hit $20?

| Andrew Walker

Canadian Oil Sands Ltd. (TSX:COS) is making progress on its turnaround, but risks still remain.

Read more »

The Motley Fool
Dividend Stocks

Should You Buy Cardinal Energy Ltd. and its 5.5% Yield Today?

| Joseph Solitro

Cardinal Energy Ltd. (TSX:CJ) released first-quarter earnings on May 11, and its stock has reacted by rising slightly. Is now…

Read more »

The Motley Fool
Dividend Stocks

3 Reasons Why Fortis Inc. Should Be Atop Your Buy List

| Joseph Solitro

Fortis Inc. (TSX:FTS) belongs in your portfolio for the following three reasons.

Read more »

The Motley Fool
Dividend Stocks

Can Investors Count on These 5%+ Energy Sector Dividends?

| Nelson Smith

The generous dividends of Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG), Arc Resources Ltd. (TSX:ARX), and Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) are all…

Read more »