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

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, September 27

| Jitendra Parashar

An early morning recovery in commodity prices should help the main TSX index open slightly higher today.

Read more »

Natural gas
Energy Stocks

Canadian Natural Resources Stock (TSX:CNQ): Profiting From Natural Gas Strength

| Karen Thomas, MSc, CFA

Soaring cash flows and dividends have come to characterize Canadian Natural Resources stock as well as other natural gas stocks.

Read more »

oil and natural gas
Energy Stocks

Oil Stocks: The Next 3 Months Are Key

| Andrew Button

Oil stocks like Suncor Energy Inc (TSX:SU)(NYSE:SU) are reporting earnings soon. There are two other big events happening, too.

Read more »

Energy Stocks

Want Monthly Passive Income? These TSX Dividend Stocks Are for You

| Aditya Raghunath

Create a passive income stream with monthly paying dividend stocks on the TSX such as Pembina Pipeline and Freehold Royalties.

Read more »

Energy Stocks

Why Suncor Energy Stock Could Lose its Underperformer Tag Soon

| Vineet Kulkarni

So far this year, SU stock has gained 21%, while TSX energy stocks at large have gained 38%.

Read more »

money cash dividends
Dividend Stocks

Canadian Investors: Where to Put $100 Right Now

| Christopher Liew, CFA

Canadians with $100 to invest can put their money to work in three low-priced, dividend-paying TSX stocks.

Read more »

Dividend Stocks

Not Every Cheap Stock has Value: 1 Stock to Buy, 1 to Sell, and 1 to Hold

| Puja Tayal

The market downturn has created an opportunity to buy value stocks at a bargain. Here’s a guide to optimizing your…

Read more »

Energy Stocks

Gold and Energy: Here Are Two of the Best Stocks to Buy Now

| Daniel Da Costa

Gold and energy stocks are some of the best to buy now for very different reasons.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Here’s Why I’m Buying the Dip in Suncor (TSX:SU) Today

| Ambrose O'Callaghan

Suncor Energy Inc. (TSX:SU)(NYSE:SU) stock is worth buying, even as oil and gas prices have softened in the second half…

Read more »

Energy Stocks

TFSA: How to Maximize Your Contributions to Retire Rich

| Nicholas Dobroruka

The RRSP isn’t the only account that can be used for retirement savings. Here’s how you can use a TFSA…

Read more »

telehealth stocks
Energy Stocks

Got $2,000? Here Are Three Smart TSX Stocks to Buy Now

| Aditya Raghunath

Top TSX stocks such as WELL Health have the potential to deliver outsized gains to long-term investors.

Read more »

Energy Stocks

Why New Investors Should Buy Oil Stocks (With Huge Dividends) Right Now

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) is a wonderful cash cow that's too cheap to ignore for new investors seeking dividends.

Read more »

Dividend Stocks

2 Stocks I Own and Will Buy More of if They Fall

| Karen Thomas, MSc, CFA

While bear markets can be daunting, they also present a unique opportunity for investors to snatch up quality companies. Here…

Read more »

Dividend Stocks

3 TSX Stocks with High Dividend Yields

| Vineet Kulkarni

As recession fears escalate, TSX dividend stocks are in the limelight. Here are three stocks to consider that offer stable,…

Read more »

oil and natural gas
Energy Stocks

3 Oil Stocks With Mind-Blowing Dividend Yields

| Andrew Button

Pipeline stocks like Enbridge (TSX:ENB)(NYSE:ENB) have very high dividend yields. Share buybacks are ongoing, too.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

These Monthly Dividend Payers Could Carry Your Portfolio for Years

| Demetris Afxentiou

Finding the right mix of monthly dividend paying stocks can make a huge difference to your portfolio. Here are some…

Read more »

Dividend Stocks

Beginners: 2 Heavyweight Stocks to Buy and Outrun Inflation   

| Christopher Liew, CFA

New and old investors alike can outrun inflation and achieve long-term financial goals by choosing heavyweight stocks as the anchors…

Read more »

Dividend Stocks

As Canada’s Inflation Rate Slows Down to 7%, These 2 Stocks Offer Higher Returns

| Vishesh Raisinghani

As the cost of living continues to climb, you can fight back with defensive stocks that reliably deliver above-inflation returns.…

Read more »

oil and natural gas
Dividend Stocks

Top TSX Natural Gas Stocks to Buy in September 2022

| Vineet Kulkarni

TSX natural gas stocks have notably outperformed their oil peers. Here are two to consider.

Read more »

Energy Stocks

3 UNDERVALUED TSX Energy Stocks to Buy Today

| Vineet Kulkarni

Here are three insanely cheap TSX energy stocks that offer handsome upside potential.

Read more »

Energy Stocks

1 U.S. Stock to Buy That Could Make You a Millionaire

| Karen Thomas, MSc, CFA

Cheniere Energy is the stock to buy. It'll benefit from the rising LNG industry, as global demand for North American…

Read more »

Energy Stocks

2 Inflation-Fighting Canadian Energy Sector ETFs to Buy

| Tony Dong, MSc, CETF®

These energy sector ETFs can help fight inflation.

Read more »

Energy Stocks

Why Canadian Oil Stocks Could Still Have a Huge Rally in 2022

| Robin Brown

Canadian oil and gas stocks are cheap and set to massively outperform in 2022 and 2023. Here are three reasons…

Read more »

Energy Stocks

2 High-Leverage Options to Play Surging Energy Prices

| Chris MacDonald

Here are two high-leverage options for investors seeking exposure to rising energy prices or for a hedge during these uncertain…

Read more »

Energy Stocks

3 Steady TSX Stocks to Buy in September

| Daniel Da Costa

Here are three of the most defensive TSX stocks to buy for your portfolio in the current market environment.

Read more »

Energy Stocks

Suncor (TSX:SU): Is it a Value Buy Opportunity Right Now?

| Adam Othman

Suncor Energy (TSX:SU)(NYSE:SU) is a battered and bruised energy stock that can be an excellent bet for value-seeking investors.

Read more »

oil and gas pipeline
Energy Stocks

Should TC Energy Stock Be Part of Your Dividend Portfolio in 2022?

| Aditya Raghunath

TC Energy is a blue-chip stock trading on the TSX which offers investors a tasty forward dividend yield of 5.8%.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Why Canadian Oil and Gas Stocks Offer Striking Growth From Here

| Vineet Kulkarni

What's your top TSX energy bet?

Read more »

Energy Stocks

Top Under-$10 TSX Energy Stocks That Offer Huge Growth Prospects

| Vineet Kulkarni

Here are three TSX energy stocks that are potential winners.

Read more »

oil and natural gas
Energy Stocks

TSX Energy Stocks: Dividends or Share Buybacks?

| Vineet Kulkarni

Energy investors will likely keep seeing higher total returns.

Read more »

Energy Stocks

3 TSX Energy Stocks to Buy for Fast-Growing Passive Income

| Robin Brown

TSX energy stocks are the place to be for fast-growing passive income. Here are three of my favourite energy stocks…

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

2 Top Energy Stocks That Can Continue to Rally

| Daniel Da Costa

Although energy stocks have already seen a strong performance so far this year, these two top companies have more growth…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Strong Buys Under $10: 3 Energy Stocks With More Upside Ahead

| Christopher Liew, CFA

With the oil price level expected to remain at $100 per barrel, more upside is ahead for three top-performing energy…

Read more »

Stocks for Beginners

Building a portfolio – 3 Stocks at a Time

| Demetris Afxentiou

Investors looking to build a portfolio for the long-term should consider one or more of these stellar, dividend-paying stocks.

Read more »

Dividend Stocks

Is Keyera (TSX:KEY) Stock a Buy Right Now?

| Adam Othman

Keyera stock is currently in the limelight due to rising energy prices and the Russia-Ukraine conflict, but is this mid-cap…

Read more »

Energy Stocks

3 Canadian Stocks That Could be Huge Winners in the Next Decade and Beyond

| Karen Thomas, MSc, CFA

Stocks like Canopy Growth, Blackberry, and Ballard Power are leading and redefining new multi-billion dollar industries.

Read more »

canadian energy oil
Energy Stocks

Should You Buy Whitecap Resources Stock for its 4.75% Dividend Yield?

| Aditya Raghunath

Whitecap Resources is a quality energy stock that has delivered outsized gains to investors in 2022. Is it a buy…

Read more »

Energy Stocks

The 3 Biggest Canadian Energy Stocks in the Correction Zone

| Vineet Kulkarni

Time to load up some of the top energy stocks!

Read more »

Dividend Stocks

TFSA Investors: 3 Dividend Stocks For An Income-Producing Portfolio

| Adam Othman

If you’re looking for stocks that can generate steady passive income in your TFSA, there are many factors to consider.…

Read more »

oil and gas pipeline
Energy Stocks

Is Keyera (TSX:KEY) Stock a Buy?

| Puja Tayal

Keyera (TSX:KEY) stock came into the limelight as oil and gas prices surged. Is this mid-cap stock a buy in…

Read more »