Motley Fool Premium
  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

1 Top TSX Energy Stock to Load Up on Right Now

| Chris MacDonald

Here's why investors may want to consider Tourmaline Oil (TSX:TOU) as a top energy stock to buy as we head…

Read more »

Energy Stocks

4 Top Canadian Energy Stocks That Pay High Dividends

| Robin Brown

Canadian energy stocks are roaring in 2021. Here are four ways you can collect some great, growing streams of income…

Read more »

Dividend Stocks

4 Stocks Is All You’ll Need to Retire Wealthy

| Christopher Liew, CFA

Canadians saving for the future need only four dividend stocks to build a nest egg and have ample wealth in…

Read more »

Energy Stocks

3 Top Undervalued Stocks to Buy With $300

| Sneha Nahata

These Canadian stocks continue to offer good value and look attractive at current levels.

Read more »

Dividend Stocks

2 No-Brainer Energy Stocks to Buy

| Adam Othman

A lot of energy companies are displaying marvelous growth right now, and if you don’t want to research hidden gems,…

Read more »

online shopping
Dividend Stocks

3 Best TSX Stocks to Buy As 2021 Winds Down

| Christopher Liew, CFA

With 2021 winding down, investors seeking income and capital gains can buy two TSX30 winners and a high-flying energy stock.

Read more »

Energy Stocks

TSX Stocks: 3 Canadian Bigwigs to Release Q3 Earnings Next Week

| Vineet Kulkarni

TSX stocks have already gained more than 20% so far this year. Superior earnings growth might give a vital impetus…

Read more »

Energy Stocks

+430% YTD Return: 2 Energy Stocks You Can’t Afford to Miss

| Christopher Liew, CFA

Growth investors can’t miss out on two energy stocks that have delivered returns of more than 430% thus far in…

Read more »

Energy Stocks

2 TSX Pipeline Stocks With Dividend Yields Over 5%

| Amy Legate-Wolfe

These pipeline stocks on the TSX today offer Motley Fool investors a solid dividend yield on top of enormous share…

Read more »

Energy Stocks

3 Reopening Stocks to Buy in October

| Karen Thomas, MSc, CFA

The three reopening stocks to buy are Air Canada, Cineplex, and Suncor stock. All are set to benefit greatly from…

Read more »

Energy Stocks

Energy Stocks Under $10 to Snag Today

| Ambrose O'Callaghan

Oil and gas prices are rising, which should spur investors to target energy stocks like Baytex Energy Corp. (TSX:BTE) right…

Read more »

Dividend Stocks

Want to Retire Faster? These 2 Stocks Could Get You There

| Christopher Liew, CFA

Canadians can retire faster by investing in two ever-reliable dividend stocks.

Read more »

Energy Stocks

1 Energy Stock That Could Double in 2022

| Amy Legate-Wolfe

If you want an energy stock that's bound for growth, which can be hard to find, Cenovus Energy (TSX:CVE)(NYSE:CVE) looks…

Read more »

money cash dividends
Energy Stocks

Got $200? 2 Top Under-$100 Canadian Stocks to Buy Right Now

| Nicholas Dobroruka

Investors should have these affordable Canadian stocks on their radar. The two will cost you a total of less than…

Read more »

TSX Today
Energy Stocks

TSX Today: Top 5 Canadian Stocks to Watch on Wednesday, October 20

| Jitendra Parashar

Here are the top five TSX stocks that Canadian investors may want to watch today.

Read more »

Dividend Stocks

2 Top Canadian Energy Stocks With Momentum to Buy Right Now

| Chris MacDonald

Here's why investors may want to take a look at these two top Canadian energy stocks right now, as the…

Read more »

Dividend Stocks

The 3 Best Canadian Stocks for Dividend Income

| Sneha Nahata

These Dividend Aristocrats will likely supplement investors' income.

Read more »

Dividend Stocks

Stock Picks Performance: 10 Months, 8 Stocks, 10% Return

| Puja Tayal

Building a portfolio is an ongoing process. A stock may be the top pick in one month but not in…

Read more »

Dividend Stocks

TSX Energy Stocks to Load up the Truck This Earnings Season

| Vineet Kulkarni

Energy will most likely be among the top-performing sectors this earnings season. It has already been an outperformer this year.…

Read more »

Dividend Stocks

2 Stocks Still on Sale in a Ridiculously Overpriced Market

| Adam Othman

It is challenging to find undervalued stocks in an overpriced market that can deliver stellar shareholder returns, but it is…

Read more »

Energy Stocks

The 3 Best Canadian Stocks to Buy This Month

| Nicholas Dobroruka

With the market near all-time highs, long-term investors should have these three Canadian stocks on their radar this month.

Read more »

Dividend Stocks

The 3 Best Canadian Dividend Stocks to Buy With $1,000 Now

| Christopher Liew, CFA

The environment is conducive to investing. You can use your $1,000 to buy the top-performing dividend stocks in the energy,…

Read more »

Energy Stocks

Why Suncor (TSX:SU) Stock Is Soaring

| Karen Thomas, MSc, CFA

Suncor stock and other energy stocks are rallying off of strong commodity prices. It's not too late to get exposure,…

Read more »

Dividend Stocks

Can the Bull Market in Oil Continue Running?

| Chris MacDonald

I'm going to discuss one top Canadian energy play investors may want to consider right now.

Read more »

Dividend Stocks

2 TSX Mid-Cap Stocks to Buy This Month

| Adam Othman

These mid-cap stocks could deliver solid long-term returns with reduced short-term volatility than small-cap stocks.

Read more »

Energy Stocks

TSX Stocks Making the Biggest Moves Midday: Denison Mines, Cameco, Hive, Lightspeed, and More…

| Jitendra Parashar

These Canadian stocks are making the biggest moves on the TSX today. Let's find out why.

Read more »

Energy Stocks

Rising Oil Prices: Will Suncor Energy (TSX:SU) Be a Good Buy Right Now?

| Rajiv Nanjapla

Given the favourable market conditions and its attractive valuation, Suncor Energy could be an excellent buy right now.

Read more »

Dividend Stocks

3 Top TSX Stocks to Buy Ahead of Q3 2021 Earnings

| Vineet Kulkarni

TSX stocks could continue to rally, driven by solid Q3 2021 numbers. Here are three top Canadian names that could…

Read more »

Dividend Stocks

2 Energy Stocks to Buy As Gas Prices Spike

| Adam Othman

Undervalued stocks from the energy sector could prove to be the perfect assets to buy during the current market environment.

Read more »

Dividend Stocks

3 Top Canadian Stocks to Buy in Q4 2021

| Christopher Liew, CFA

Investors can buy three top TSX stocks in Q4 2021 to form a diversified portfolio that can deliver income and…

Read more »

Energy Stocks

Enbridge (TSX:ENB) vs. Suncor (TSX:SU): Which Stock Should You Buy?

| Christopher Liew, CFA

The TSX’s energy sector is red hot. Investors have excellent buying opportunities in a steady pipeline operator or a resurging…

Read more »

Energy Stocks

Forget Oil: Buy These Cheap Green Energy Stocks Instead

| Ambrose O'Callaghan

Oil is surging, but investors should consider snatching up green energy stocks like Northland Power Inc. (TSX:NPI) right now.

Read more »

Energy Stocks

Oil Rally: 3 Energy Stocks to Explore in October 2021

| Kay Ng

Are you looking to participate in the oil rally? Then investigate these three energy stocks.

Read more »

Energy Stocks

3 Energy Stocks to Buy as Oil Prices SOAR

| Ambrose O'Callaghan

Oil prices have erupted since late August, which is spurring energy stocks like Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) to new heights.

Read more »

Dividend Stocks

2 Brilliant Dividend Stocks to Buy Today

| Christopher Liew, CFA

Canadian investors can buy two brilliant dividend stocks this month for their high yields and solid performances in 2021.

Read more »

Energy Stocks

Suncor Stock (TSX:SU): 3 Reasons to Buy in October

| Karen Thomas, MSc, CFA

Suncor's stock price and other energy stocks are soaring, as rising oil and gas prices boost cash flows and create…

Read more »

Dividend Stocks

47% of Canadians Made This Huge TFSA Mistake

| Christopher Liew, CFA

Canadians can correct their huge TFSA mistake by holding a greater proportion of income-producing assets in the account rather than…

Read more »

Energy Stocks

Top 2 Canadian Dividend Stocks to Watch in October 2021

| Puja Tayal

Most investors expect dividend stocks to pay steady and regular income. What if they also give capital appreciation and dividend…

Read more »

Dividend Stocks

Top 3 Stocks to Buy and Never Sell

| Puja Tayal

The stock market is all about timing. But if market momentum is your enemy, here are three stocks you can…

Read more »

Dividend Stocks

What 4 Canadian Stocks Should You Buy in October 2021?

| Puja Tayal

The stock market is riding the bull this October. Even in this bull market, there are a few stocks for…

Read more »