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

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 »

Energy Stocks

Should You Drop Energy Stocks Before the Recession Kicks in?

| Christopher Liew, CFA

Two Canadian energy stocks with overflowing cash flows are worth holding despite a looming recession.

Read more »

Energy Stocks

2 Value Stocks to Buy Now

| Karen Thomas, MSc, CFA

Suncor Energy stock and Cineplex stock are two of the most undervalued and underappreciated names on the TSX today.

Read more »

Energy Stocks

Oil’s Bull Run Isn’t Over

| Andrew Button

Oil stocks like Suncor Energy Inc (TSX:SU)(NYSE:SU) could benefit from high oil prices.

Read more »

Energy Stocks

Want Easy Passive Income? Go With These 2 Canadian Dividend Aristocrats

| Christopher Liew, CFA

Conservative investors can earn easy passive income despite the heightened market volatility in 2022 by simply owning two Canadian dividend…

Read more »

Dividend Stocks

3 Under-$20 Dividend Stocks with Yields of Over 5%

| Rajiv Nanjapla

Given their high yields and attractive valuations, these three under-$20 dividend stocks are excellent buys in uncertain times.

Read more »

Energy Stocks

Why Tamarack Valley Energy (TSX:TVE) Stock Could Change Course Soon

| Vineet Kulkarni

TVE stock has dropped 40% from its record highs.

Read more »

Energy Stocks

Suncor Energy (TSX:SU) Is Down by Almost 25%: Should You Buy Right Now?

| Adam Othman

Suncor Energy (TSX:SU)(NYSE:SU) might be an excellent investment at current levels if you’re looking for a bargain among energy stocks.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

3 Dividend Beasts with Over 7% Yields

| Christopher Liew, CFA

Canadian investors can earn generous passive income every month from three dividend beasts whose yields are over 7%.

Read more »

Energy Stocks

Crude Oil Prices: Why the Party for the Bears May Not Last Long

| Vineet Kulkarni

Despite the recent fall, TSX energy stocks have returned 50%, while the TSX Composite Index has dropped 6% in 2022.…

Read more »

Energy Stocks

2 High-Yield Oil Stocks to Buy and Hold on Lower Demand Worries

| Christopher Liew, CFA

Two high-yield TSX oil stocks can sustain dividend payments, even if crude prices drop due to lower demand worries.

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, September 13

| Jitendra Parashar

TSX investors are likely to closely watch the latest U.S. inflation numbers today.

Read more »

Energy Stocks

1 of the Safest Canadian Energy Stocks (With Dividends) to Own Forever

| Jitendra Parashar

Despite the broader market weakness, this safe Canadian dividend stock currently trades with more than 40% year-to-date gains.

Read more »

oil and natural gas
Energy Stocks

Why I’m Still Holding Oil Stocks

| Andrew Button

This year, I have invested in oil stocks like Suncor Energy (TSX:SU)(NYSE:SU). I sold that one, but I still hold…

Read more »

Energy Stocks

Energy Stocks: The Best Stocks to Buy for Both Growth and Dividend Investors

| Daniel Da Costa

If you're looking to add more exposure to energy, here are two of the best stocks in the sector to…

Read more »

Energy Stocks

Oil Stocks: Next Leg Up in October?

| Andrew Button

October could be a big month for energy stocks like Suncor Energy Inc (TSX:SU)(NYSE:SU).

Read more »

Dividend Stocks

Top Canadian Dividend Stocks for Income-Seeking Investors

| Vineet Kulkarni

Is your portfolio ready for an impending recession? Defensive dividend stocks are safer investment options in uncertain times. Here are…

Read more »

Energy Stocks

3 Crucial Factors to Consider Before You Buy Canadian Stocks

| Daniel Da Costa

If you're new to investing and wondering how to pick the right stocks, here are some important factors to consider.

Read more »

Energy Stocks

Pason Energy Stock: Digitizing the Oil Patch

| Karen Thomas, MSc, CFA

Energy stocks are commodity stocks. But Pason is a technological innovator in the oil and gas world, driving significant value…

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

Retirement Planning in 2022: Be Sure to Factor in Inflation

| Christopher Liew, CFA

Stubborn inflation in 2022 calls for a new approach to retirement planning. Future retirees are advised to factor inflation into…

Read more »

Dividend Stocks

Got $2,000? Here Are 3 Smart TSX Stocks to Buy Now

| Rajiv Nanjapla

Given their solid business models and stable financials, these three TSX stocks are an excellent buy in this volatile environment.

Read more »

Dividend Stocks

2 High-Yield Dividend Stocks for Income Investors

| Christopher Liew, CFA

Two high-yield dividend stocks that can overcome the headwinds are viable options for income investors.

Read more »

oil and gas pipeline
Energy Stocks

Does Enbridge Stock Really Have a Payout Ratio of 140%?

| Daniel Da Costa

Although Enbridge stock may seem like it has an unsustainable payout ratio, it's actually one of the most reliable companies…

Read more »

close-up photo of investor Warren Buffett
Energy Stocks

3 Cheap Canadian Stocks Warren Buffett has Bought

| Andrew Button

While Warren Buffett isn’t known for investing in Canadian stocks, he has owned a few. Let’s take a look at…

Read more »

oil and natural gas
Energy Stocks

Canadian Natural Resources (TSX:CNQ): A Top Stock to Buy Going Into a Recession

| Joey Frenette

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) stock is too cheap a cash cow to pass up amid rising interest rates.

Read more »

energy oil gas
Dividend Stocks

Why MEG Energy (TSX:MEG) is Among the Best TSX Energy Stocks

| Vineet Kulkarni

MEG Energy stock has returned 60% this year, beating peers by a wide margin.

Read more »

Energy Stocks

2 Energy Stocks to Buy to Invest in Commodities

| Adam Othman

These two oil and gas stocks could be excellent investments for you to consider as long-term buy-and-hold assets.

Read more »

Energy Stocks

3 Great Momentum Stocks You Should Buy Today!

| Christopher Liew, CFA

Three TSX energy stocks can sustain their strong momentum if OPEC cuts back production output to drive oil prices higher…

Read more »

Energy Stocks

Suncor Energy: Is This Stock Now Oversold?

| Andrew Walker

Suncor stock looks cheap, but is this the right time to buy?

Read more »

Energy Stocks

3 of the Best Canadian Energy Stocks to Buy for All Types of Investors

| Daniel Da Costa

With the energy sector experiencing significant tailwinds, here are three of the best Canadian stocks to buy now and hold…

Read more »

Energy Stocks

3 Top Energy TSX Stocks That Offer High Monthly Passive Income

| Vineet Kulkarni

Despite the recent correction, TSX energy stocks continue to outperform.

Read more »

Energy Stocks

5 Canadian Energy Stocks That Earn Incredible Passive Income

| Robin Brown

Here are five Canadian energy stocks that pay incredible dividends and could earn you significant passive income this year and…

Read more »

Energy Stocks

2 Top TSX Energy Stocks to Buy as Crude Oil Soars

| Vineet Kulkarni

Be prepared for the next leg of the crude oil price rally.

Read more »

Dividend Stocks

3 Stocks For Over 5x Growth In The Next Two Decades

| Adam Othman

The TSX has many predictable and steady growth stocks that can help you grow your savings by as much as…

Read more »

A plant grows from coins.
Dividend Stocks

3 of the Top Growing Stocks on Earth

| Adam Othman

The Canadian market has several robust growth stocks comparable to top international assets that offer long-term or event-driven growth.

Read more »

Dividend Stocks

Canadians: 3 Easy Stocks to Invest in for Retirement

| Vineet Kulkarni

Asset allocation plays an important role when planning for retirement, and should be driven by your investment horizon and risk…

Read more »

Energy Stocks

Why Suncor Stock Could Be a Great Portfolio Hedge Right Now

| Chris MacDonald

Here's why Suncor (TSX:SU)(NYSE:SU) stock could be a great portfolio hedge providing excellent upside in this volatile market.

Read more »

oil and gas pipeline
Energy Stocks

Forget Suncor (TSX:SU): Here Are 3 Better Energy Stock Picks

| Adam Othman

Even though most energy stocks are on the bullish track right now, not all of them are worth buying, and…

Read more »

Energy Stocks

3 Canadian Stocks I’m Buying in This Volatile Market

| Puja Tayal

The Canadian stock market remains volatile as it braces for more interest rate hikes. This creates an opportunity to buy…

Read more »