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

oil and natural gas
Energy Stocks

5 Things You Need to Know About CNQ Stock

| Vineet Kulkarni

CNQ: Should you buy Canada's biggest energy producer stock?

Read more »

Energy Stocks

Why This Energy Giant Looks Like a Major Bargain

| Chris MacDonald

Here's why I think Suncor (TSX:SU) is one energy giant that is starting to look like a major bargain, despite…

Read more »

Energy Stocks

Warren Buffett Is Betting BIG on Oil Stocks: Should You, Too?

| Robin Brown

Warren Buffett has been making a huge bet on oil stocks in 2022. Here's why Canadian investors should consider following…

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Top TSX Energy Stocks to Buy for Monthly Passive Income

| Vineet Kulkarni

TSX energy stocks offer both solid dividends and stock appreciation prospects.

Read more »

Natural gas
Energy Stocks

Top TSX Natural Gas Stocks to Buy in October 2022

| Vineet Kulkarni

These Canadian natural gas stocks offer handsome growth prospects.

Read more »

Dividend Stocks

Top TSX Defensive Stocks to Buy as the Global Growth Outlook Weakens

| Vineet Kulkarni

If global growth weakens next year, here's how investors can create defensive portfolios in such volatile markets.

Read more »

Dividend Stocks

3 Top Value Stocks That are Screaming Buys Right Now

| Vineet Kulkarni

Value stocks will outperform growth names in the short to medium-term. Here are three Canadian gems to consider.

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Friday, October 14

| Jitendra Parashar

High volatility in TSX stocks is likely to remain intact in the near term amid grim economic prospects.

Read more »

sale discount best price
Dividend Stocks

3 Undervalued TSX Stocks You Can Buy at a Screaming Discount

| Vineet Kulkarni

Not all those corrected stocks offer value! Here are 3 attractively valued TSX stocks.

Read more »

Energy Stocks

5 Things to Know About CVE Stock

| Amy Legate-Wolfe

Cenovus stock (TSX:CVE)(NYSE:CVE) is up 60% year-to-date, and more growth is expected. But is it a buy in this market…

Read more »

Energy Stocks

Want Oil Stock Gains Without the Volatility? Consider This 6% Yielder

| Andrew Button

Enbridge Inc (TSX:ENB) stock can thrive, even with oil prices going down.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Down 25% From the Top, These Canadian Energy Stocks Look Ready to Zoom

| Vineet Kulkarni

As crude oil seems ready to soar, these energy stocks will likely follow.

Read more »

Energy Stocks

The Next Oil Price Rally Could Be Massive

| Andrew Button

If the price of oil rallies, then Suncor Energy Inc (TSX:SU) could rally as well.

Read more »

oil and natural gas
Energy Stocks

If I’d Invested in Suncor Stock at the Start of 2022, Here’s What I’d Have Now

| Puja Tayal

Suncor Energy (TSX:SU) outperformed in the 2022 bear market. See how much your Suncor investment is worth now.

Read more »

canadian energy oil
Energy Stocks

Buy Alert: This Energy Stock Is Unstoppable After Strong Results

| Aditya Raghunath

Devon Energy has delivered outsized gains to shareholders in 2022 due to rising oil prices. Is DVN stock still a…

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

Where to Invest in Renewable Energy Stocks to Generate Passive Income for Life

| Amy Legate-Wolfe

Brookfield Renewable Energy (TSX:BEP.UN)(NYSE:BEP) is one of the best investments you can make right now, and not just for growth.

Read more »

Energy Stocks

This TSX Stock Is Super Cheap and Pays a Monster Dividend

| Demetris Afxentiou

Looking for a super cheap TSX stock that offers a monster dividend? Here’s one company that offers a juicy payout…

Read more »

Dividend Stocks

3 Top TSX Stocks to Watch in October 2022

| Vishesh Raisinghani

TSX stocks have had a rough year but these three are thriving and have a bright outlook for the months…

Read more »

Dividend Stocks

If I’d Invested in Enbridge Stock at the Start of 2022, Here’s What I’d Have Now

| Puja Tayal

Enbridge stock has outperformed the market as it benefits from the global energy crisis. Is this stock a buy?

Read more »

Energy Stocks

Why Enbridge Stock Is a Fantastic Investment in a Recession

| Daniel Da Costa

Enbridge has a highly defensive business and has increased its dividend for 26 straight years, making it a top stock…

Read more »

Dividend Stocks

This High-Yield Canadian Stock Is a No-Brainer

| Adam Othman

This high-yielding Canadian energy stock can be an excellent addition to your portfolio for sizable monthly dividend income.

Read more »

oil and gas pipeline
Energy Stocks

Should You Buy Liquefied Natural Gas Stocks Right Now? 

| Puja Tayal

North American natural gas companies and utilities are facing the impact of natural gas prices worldwide. Is now a good…

Read more »

Dividend Stocks

Where Will Enbridge be in 5 Years?

| Andrew Button

Enbridge stock is doing so-so this year. Where will it be five years from now?

Read more »

protect, safe, trust
Energy Stocks

These Overlooked TSX Stocks Could Turbocharge Your TFSA/RRSP Portfolio

| Joey Frenette

Algonquin Power (TSX:AQN)(NYSE:AQN) and Northland Power (TSX:NPI) are green-energy dividend studs that can help you boost your TFSA or RRSP.

Read more »

A bull and bear face off.
Energy Stocks

3 Safe TSX Stocks for Investing in a Bear Market

| Vineet Kulkarni

Some TSX stocks are outplaying the broader market this year. Here's how you can play the bear market.

Read more »

Energy Stocks

3 Doses of Warren Buffett Wisdom That All TSX Investors Need Right Now

| Andrew Button

Warren Buffett has invested in stocks like Suncor Energy Inc (TSX:SU)(NYSE:SU). Should you?

Read more »

Energy Stocks

Enbridge (TSX:ENB) Stock Fell 6% in September: Should You Buy?

| Vineet Kulkarni

Enbridge’s earnings and dividend stability are particularly attractive in uncertain markets.

Read more »

Energy Stocks

Should You Buy Enbridge Stock or Pembina Pipeline Stock for Passive Income?

| Andrew Walker

Energy infrastructure stocks now trade at discounted prices and offer high yields for passive income.

Read more »

Energy Stocks

Why MEG Energy (TSX:MEG) Stock Lost 16% in September

| Vineet Kulkarni

Energy prices are starting to rebound. Should you buy MEG stock after its steep correction?

Read more »

crypto, chart, stocks
Energy Stocks

3 No-Brainer Oil Stocks to Buy in October

| Rajiv Nanjapla

Amid rising oil prices, here are three top oil stocks to buy right now.

Read more »

Dividend Stocks

TFSA Passive Income: 1 TSX Dividend Stock to Buy and Hold for Decades

| Christopher Liew, CFA

A TSX dividend stock with strong growth and excellent dividends in 2022 is a must-buy to create TFSA passive income…

Read more »

Dividend Stocks

Why Algonquin Power & Utilities Stock Fell 15% in September

| Rajiv Nanjapla

Given its healthy growth prospects, cheaper valuation, and high dividend yield, I'm bullish on AQN despite rising interest rates.

Read more »

Energy Stocks

Why Suncor Energy (TSX:SU) Stock Fell as Much as 14% in September 

| Puja Tayal

Suncor Energy (TSX:SU)(NYSE:SU) stock fell 14% in September. Is it the cooling of the global energy crisis or silence before…

Read more »

oil and gas pipeline
Energy Stocks

Enbridge (TSX:ENB) Stock Just Keeps on Giving With a 6.55% Yield

| Christopher Liew, CFA

Enbridge, a consistent income stock, continues to impress with its dividend, despite the heightened market volatility in 2022.

Read more »

Energy Stocks

The Best TSX Stocks to Buy With $1,000 Right Now

| Amy Legate-Wolfe

These two TSX stocks are ideal options for safely investing $1,000 in this unpredictable market.

Read more »

Energy Stocks

2 Top TSX Energy Stocks to Buy Right Now

| Robin Brown

A rebound in oil prices would be favourable for TSX energy stocks. Here are two top picks to buy right…

Read more »

Energy Stocks

2 Energy Heavyweights With Bountiful Dividend Yields

| Joey Frenette

Canadian Natural Resources (TSX:CNQ) stock seems too cheap to ignore after slipping into a correction.

Read more »

Energy Stocks

Better Buy: Renewable Energy or Uranium Stocks?

| Amy Legate-Wolfe

The world is shifting towards clean energy sources, creating investment opportunities in the renewables sector. What's a better bet: environmental…

Read more »

Energy Stocks

These 3 Stocks Can Help Make You Richer by Retirement

| Christopher Liew, CFA

Future retirees can be rich in their sunset years with the help of three distinguished dividend-payers on the TSX.

Read more »

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

1 TSX Sector I’m Bullish on in October 2022

| Amy Legate-Wolfe

Renewable energy is exactly where investors should sit on their cash, so this is the top stock I'd recommend to…

Read more »