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

Energy Stocks

Top 3 Energy Stocks for 2022

| Vishesh Raisinghani

Energy stocks like Enbridge (TSX:ENB)(NYSE:ENB) should be on the top of your list.

Read more »

oil and natural gas
Energy Stocks

3 Reasons Oil Stocks Are Outperforming Tech This Year

| Vishesh Raisinghani

Oil stocks like Baytex should be on your watch list.

Read more »

oil and gas pipeline
Energy Stocks

3 High-Yielding Energy Stocks to Buy Amid Rising Volatility

| Rajiv Nanjapla

These three energy stocks can boost your passive income.

Read more »

Energy Stocks

3 Cheap Energy Stocks to Buy Right Now to Earn Superior Returns

| Rajiv Nanjapla

Given the favourable environment and their cheaper valuations, these three energy stocks can outperform this year.

Read more »

Dividend Stocks

1 Energy ETF With an Unbelievable 55% Gain

| Christopher Liew, CFA

An energy ETF with proven resiliency continues to outperform and has gained more than 50% thus far in 2022.

Read more »

Energy Stocks

1 Severely Undervalued TSX Stock in the Red-Hot Energy Patch

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) stock has been a relative underperformer that could have most room to run as oil stays above…

Read more »

Energy Stocks

Canadian Natural Resources (TSX:CNQ) Stock: A Perfect Pick for Income and Value

| Joey Frenette

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) stock may have doubled up in a year, but shares are still cheap with room to…

Read more »

canadian energy oil
Dividend Stocks

2 TSX Oil Stocks That Have Gained Over 45% in 2022

| Adam Othman

Oil prices are soaring, and nothing seems to be stopping their rise. These two oil stocks could be excellent investments…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

3 Reasons Why TSX Energy Stocks Could Keep Rallying

| Vineet Kulkarni

TSX energy stocks have gained 60% in 2022, while U.S. energy names have soared 47%.

Read more »

Energy Stocks

Scared of a Market Rout? Buy These 2 Value Stocks

| Christopher Liew, CFA

Investors fearing a market rout can take positions in two value stocks from the top-performing energy sector.

Read more »

oil and natural gas
Energy Stocks

Suncor Energy Stock Could Have More Room to Run

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) stock is one of many big oil plays that may be too undervalued for its own good.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

3 Energy Stocks I’d Buy in 2022

| Andrew Button

In 2022, I'm buying energy stocks like Suncor Energy Inc (TSX:SU)(NYSE:SU).

Read more »

Energy Stocks

Canadian Oil Stocks Are Still Bullish

| Andrew Button

Suncor Energy Inc (TSX:SU)(NYSE:SU) stock has rallied this year. It may still have further to run.

Read more »

Utility, wind power
Energy Stocks

Time to Buy TransAlta Stock?

| Andrew Walker

Shares of this utility are up significantly in the past year and more gains could be on the way.

Read more »

Natural gas
Energy Stocks

Bonterra Energy Stock Has Doubled: Is There More Upside in 2022?

| Brian Paradza, CFA

It's been one of the best-performing TSX small-cap energy stocks in 2022, yet shares are cheap today.

Read more »

Energy Stocks

3 Small-Cap TSX Energy Stocks That Doubled This Year

| Vineet Kulkarni

TSX energy stocks at large have beat broader markets this year. But that's nothing compared to these small caps.

Read more »

Energy Stocks

TFSA Wealth: Is Suncor Stock Still a Buy?

| Andrew Walker

Suncor stock still looks cheap. Here's why.

Read more »

Energy Stocks

1 Oil Company Just Increased Dividends by 12%

| Christopher Liew, CFA

Dividend chasers should include an oil bellwether on their buy lists after the company declared the highest dividend increase in…

Read more »

Energy Stocks

Oil Boom: This 6% Dividend Stock Could Go Higher

| Vishesh Raisinghani

Dividend stocks like Enridge (TSX:ENB)(NYSE:ENB) could boost payouts this year.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Income Investors: 3 Energy Stocks That Yield up to 6%

| Ambrose O'Callaghan

Income investors looking to combat volatility may want to target top dividend-yielding energy stocks like Enbridge Inc. (TSX:ENB)(NYSE:ENB).

Read more »

Energy Stocks

Passive Income: Why Buy Enbridge (TSX:ENB) and 1 More Energy Stock?

| Sneha Nahata

Their solid dividend payment history, high yields, and strong visibility over future cash flows position these companies to enhance shareholders’…

Read more »

A person looks at data on a screen
Energy Stocks

Greenlane Renewables Stock Could 3x Your Money, but Buyer Beware

| Kay Ng

Will investors take renewed interest in the renewable natural gas company as an ESG investment?

Read more »

Energy Stocks

3 Canadian Stocks to Begin Your Wealth-Creation Journey

| Rajiv Nanjapla

Given their stable cash flows and healthy growth potential, these three stocks would be perfect to begin your investing journey.

Read more »

oil and natural gas
Energy Stocks

1 Discounted and 1 Undervalued Energy Stock to Buy

| Adam Othman

Thanks to the rapid rise and increased demand, it’s easy to find attractively valued energy stocks. However, you can also…

Read more »

Energy Stocks

Oil Stocks Are Dirt Cheap: Here’s 1 Buffett Is Buying

| Andrew Button

Warren Buffett has owned oil stocks like Suncor Energy (TSX:SU)(NYSE:SU) in the past. Here's what he's buying now.

Read more »

Energy Stocks

2 Top TSX Energy Stocks to Hide From Market Volatility in 2022

| Joey Frenette

Cenovus Energy (TSX:CVE)(NYSE:CVE) and another hot TSX energy stock still look unbelievably cheap going into the summer.

Read more »

Energy Stocks

What Crude Oil at US$110 a Barrel Means for the Global Economy

| Vineet Kulkarni

The longer crude oil trades at elevated levels, the more serious its impact will be on global growth.

Read more »

Energy Stocks

Should Suncor Stock Be Part of Your Portfolio in 2022?

| Aditya Raghunath

Suncor is one of Canada's largest companies and has delivered stellar returns to investors in the last year.

Read more »

Energy Stocks

Energize Your Portfolio With 2 Value Stocks

| Christopher Liew, CFA

Two energy stocks are great value buys if you’re looking to energize your portfolio with high dividend or enormous capital…

Read more »

oil and gas pipeline
Energy Stocks

What Energy Stocks Are the Best to Buy and Hold for Years?

| Daniel Da Costa

Not all energy stocks are worth owning, but these two energy stocks are some of the best to buy and…

Read more »

canadian energy oil
Energy Stocks

2 Energy Companies to Hold for Decades

| Adam Othman

Despite the relative volatility in the sector and the changes it’s expected to go through in the next few decades,…

Read more »

oil and natural gas
Energy Stocks

Suncor Energy (TSX:SU) Stock: Still a Great Value

| Andrew Button

Suncor Energy (TSX:SU)(NYSE:SU) is looking like an incredible value today.

Read more »

Energy Stocks

Market Correction: 3 Value Stocks to Buy

| Amy Legate-Wolfe

The TSX fell 10% from March 2022 highs this week, leading to a technical correction in the market, which leaves…

Read more »

oil and natural gas
Energy Stocks

2 Canadian Energy Stocks That Pay Massive Dividends

| Robin Brown

Canadian energy stocks are gushing cash today. Here's two that are paying massive dividends to faithful shareholders right now.

Read more »

Energy Stocks

Time to Buy Vermilion Energy Stock?

| Andrew Walker

Vermilion Energy is on the mend. Is VET stock still a buy after the big rally?

Read more »

Energy Stocks

3 Top TSX Energy Dividend Stocks to Buy Right Now

| Vineet Kulkarni

Energy investors have been in a sweet spot lately with rallying stocks and steep dividend raises.

Read more »

Energy Stocks

Suncor (TSX:SU) vs. Tourmaline Oil (TSX:TOU): Buy Both?

| Christopher Liew, CFA

Two prominent names in the energy industry are worth buying if you need high-flying, dividend-paying commodity stocks.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Cenovus Energy Stock Could Extend its Rally as TSX Index Tanks

| Joey Frenette

Cenovus Energy (TSX:CVE)(NYSE:CVE) is a great dividend stock that actually has strong momentum behind it.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

3 Top Energy Stocks You Can Buy for Under $75

| Aditya Raghunath

Blue-chip Canadian stocks such as Enbridge and Brookfield Renewable Power are well poised to outpace the broader markets in 2022.

Read more »

Energy Stocks

This Energy Company Is 1 of the Best Canadian Stocks to Buy After the Recent Selloff

| Daniel Da Costa

Despite Freehold's incredible rally over the last 18 months, it continues to trade undervalued and is easily one of the…

Read more »