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 pump jack under night sky
Energy Stocks

This Energy Stock Could Be the Key to Lifelong Passive Income

| Amy Legate-Wolfe

This energy stock may be on the older side, but don't let that make you believe there's nothing in the…

Read more »

Hand Protecting Senior Couple
Energy Stocks

This Boring Utility Stock Could Build Generational Wealth

| Amy Legate-Wolfe

Looking for wealth that lasts a lifetime? Then consider Hydro One stock one of your best options.

Read more »

Man meditating in lotus position outdoor on patio
Energy Stocks

Baytex Energy: Buy, Sell, or Hold After the Big Surge?

| Andrew Walker

Baytex Energy picked up a nice tailwind in recent months. Are more gains on the way?

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Where Will Pembina Pipeline Be in 5 Years?

| Robin Brown

Pembina Pipeline has been a solid dividend stock over the decade. However, its stock is down in 2025. Is it…

Read more »

Oil industry worker works in oilfield
Energy Stocks

Is Cenovus Energy a Buy After its Big Move Last Month?

| Andrew Walker

Cenovus Energy recently made big announcements that will impact shareholders.

Read more »

cloud computing
Energy Stocks

This 5.6% Dividend Stock Could Be the Ultimate Retirement Hack

| Amy Legate-Wolfe

If you're hoping for retirement sooner as opposed to later, then look into these hacks and this dividend stock.

Read more »

up arrow on wooden blocks
Energy Stocks

This Infrastructure Powerhouse Could Quietly Make You Rich

| Amy Legate-Wolfe

If you're looking for income that lasts, then this dividend stock belongs on your watchlist immediately.

Read more »

diversification and asset allocation are crucial investing concepts
Energy Stocks

What You Should Know: TSX Sectors Holding Strong in 2025

| Christopher Liew, CFA

Two out-of-favour primary TSX sectors last year are experiencing a resurgence in 2025.

Read more »

Utility, wind power
Energy Stocks

1 Renewable Energy Stock That Could Power Your Portfolio

| Amy Legate-Wolfe

Investors seeking reliable income and growth need to consider this renewable energy company offering up monthly dividend income.

Read more »

Oil industry worker works in oilfield
Energy Stocks

Canadian Natural Resources: Should You Buy the Pullback?

| Andrew Walker

Canadian Natural Resources has underperformed the TSX this year. Is a rebound on the way?

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

1 Canadian Energy Stock You’ll Want to Hold Forever

| Amy Legate-Wolfe

This energy stock just had another banner quarter, but looks as though it might have even more growth to come.

Read more »

oil pump jack under night sky
Energy Stocks

This Canadian Energy Stock Could Keep Paying Dividends for Years

| Amy Legate-Wolfe

This dividend stock is a prime target for investors, especially if you're looking far beyond the next decade.

Read more »

a woman sleeps with her eyes covered with a mask
Energy Stocks

Why This Canadian Utility Stock Could Help You Sleep at Night

| Amy Legate-Wolfe

Canadians are losing sleep over one thing above all: money. And it's only getting worse. So let's find a solution.

Read more »

you're never too young or old to start investing in stocks
Energy Stocks

The Canadian Stock I’d Buy Right Now for My Kids’ RESP

| Amy Legate-Wolfe

If you're looking for cash to support your children and their educational future, this dividend stock could be a prime…

Read more »

monthly calendar with clock
Energy Stocks

The 7% Dividend Stock Paying Cash Every 30 Days

| Chris MacDonald

Let's dive into what to make of Whitecap Resources (TSX:WCP) and its 7% monthly dividend yield in this current macro…

Read more »

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Energy Stocks

The Canadian Dividend Stock I’d Trust for the Next 20 Years

| Amy Legate-Wolfe

This dividend stock is perfect for those wanting to see their money rise steadily – and get a good night's…

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Energy Stocks

1 Canadian Dividend Knight to Hold Through Any Market Crash

| Amy Legate-Wolfe

This Dividend Knight has enjoyed decades of consecutive growth and doesn't look like it's about to slow down.

Read more »

people relax on mountain ledge
Energy Stocks

Retire Early? This TSX Dividend Stock Could Help Make It Happen

| Amy Legate-Wolfe

Looking to retire earlier than expected? Investing in companies like this one is a strong option.

Read more »

engineer at wind farm
Energy Stocks

How Many Shares of Brookfield Renewable Partners Stock You Need to Earn $1,000 in Annual Passive Income

| Amy Legate-Wolfe

Need dividend income that lasts? This dividend stock could offer more than payouts.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Is Suncor Energy a Buy?

| Andrew Walker

Suncor is up more than 10% this year. Are more gains on the way?

Read more »

Oil industry worker works in oilfield
Energy Stocks

Is Cenovus Energy Stock a Buy?

| Aditya Raghunath

Cenovus Energy is a blue-chip TSX dividend stock that trades at a discount to consensus price targets in August 2025.

Read more »

Happy golf player walks the course
Energy Stocks

2 Wealth-Building Dividend Stocks to Buy With $500 Right Now

| Rajiv Nanjapla

Given their consistent dividend growth, high yields, and healthier growth prospects, these two Canadian stocks are ideal for building wealth…

Read more »

Hourglass and stock price chart
Energy Stocks

Why This Oil Services Stock Might Pop on an Energy Electrical Surge

| Amy Legate-Wolfe

Precision Drilling stock may not be a headline winner, but it could be a winner in your portfolio.

Read more »

canadian energy oil
Energy Stocks

Is Whitecap Resources a Buy?

| Rajiv Nanjapla

Given its improving operating efficiency, solid financial position, healthy growth prospects, and high dividend yield, WCP would be an excellent…

Read more »

Yellow caution tape attached to traffic cone
Energy Stocks

Where Could Cameco Stock Be in 5 Years?

| Brian Paradza, CFA

Cameco has the potential to sustain double-digit earnings growth if uranium prices comply, but beware the stock's valuation multiples...

Read more »

nuclear power plant
Energy Stocks

Is Cameco a Buy?

| Amy Legate-Wolfe

Cameco stock has been soaring back, and it doesn't look like it's going to be slowing down.

Read more »

monthly desk calendar
Energy Stocks

8% Yield! A Canadian Dividend Stock With a Monthly Payout 

| Puja Tayal

An 8% annual yield in a dividend stock is rare. Here is the monthly payout you can get on a…

Read more »

Happy golf player walks the course
Energy Stocks

Could Buying Suncor Energy Stock Today Set You Up for Life?

| Jitendra Parashar

Let’s find out whether Suncor Energy could become one of the most rewarding long-term energy picks on the TSX.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Is TC Energy a Buy?

| Sneha Nahata

TC Energy stock has been on a strong run, with its shares surging close to 34% over the past year…

Read more »

semi truck with cargo drives on highway
Energy Stocks

Why This Electric Mobility Firm Is More Than Just a Trend

| Amy Legate-Wolfe

There's more to this powerful energy stock than meets the eye.

Read more »

diversification and asset allocation are crucial investing concepts
Dividend Stocks

Should You Forget Enbridge Stock and Buy This Magnificent Dividend Stock Instead?

| Amy Legate-Wolfe

Looking for another option beyond Enbridge stock? Here's the perfect choice.

Read more »

canadian energy oil
Energy Stocks

This Canadian Energy Company Could Rise as Oil Prices Rebound

| Amy Legate-Wolfe

If you're looking for a superior diversified energy stock, this is the one for you.

Read more »

Man meditating in lotus position outdoor on patio
Energy Stocks

Is Cenovus Energy Stock a Buy Now?

| Jitendra Parashar

Its latest earnings and big MEG Energy acquisition highlight why Cenovus Energy could be a great opportunity for long-term investors.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Is Pembina Pipeline a Buy?

| Andrew Walker

Pembina Pipeline recently bounced off its 12-month low. Are more gains on the way?

Read more »

Investor wonders if it's safe to buy stocks now
Energy Stocks

Is ARC Resources a Buy?

| Amy Legate-Wolfe

Arc stock has had a strong, but can it keep it up?

Read more »

nuclear power plant
Energy Stocks

1 Reason to Buy Cameco Stock

| Amy Legate-Wolfe

Cameco stock has so much more for long-term investors to look forward to.

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

This TSX ESG Leader Might Be Your Portfolio’s Green Gem

| Amy Legate-Wolfe

This green energy stock still looks like one of the best undervalued options on the TSX today.

Read more »

Hourglass projecting a dollar sign as shadow
Energy Stocks

Think It’s Too Late to Buy BAM Stock? Here’s the Biggest Reason Why There’s Still Time

| Amy Legate-Wolfe

BAM stock has been on a run, and that run is about to become a tear.

Read more »

Aerial view of a wind farm
Energy Stocks

How This Canadian Green Energy Stock Could Ride the Clean Power Wave

| Amy Legate-Wolfe

Green power is the future of energy, and this could be one of the best buys for exposure.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Is Imperial Oil a Buy?

| Jitendra Parashar

Imperial Oil has already delivered massive gains over the last five years, but here’s why it may still have more…

Read more »