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

TSX Today: What to Expect From Canadian Stocks on September 7

| Jitendra Parashar

Here's what you should know before starting your trading day on the TSX on Tuesday, September 7.

Read more »

Dividend Stocks

2 Blue-Chip Stocks With Excellent Growth Potential

| Adam Othman

Shopify stock and Constellation Software stock are ideal stock picks for Canadian investors seeking stellar wealth growth.

Read more »

Energy Stocks

Can Canada’s Energy Sector Continue to Drive the TSX Higher in 2021?

| Aditya Raghunath

Is it time to consider recovery stocks such part of the energy sector instead of high-flying growth stocks right now?

Read more »

Dividend Stocks

4 Top Canadian Stocks With Over 5% Dividend Yields

| Rajiv Nanjapla

These four Canadian stocks can strengthen your portfolio and also boost your passive income.

Read more »

Dividend Stocks

3 Key Advantages of Having Utility Stocks in Your Portfolio

| Vineet Kulkarni

The Fed increased rates during 2015 and 2020, and utility stocks on average returned a fairly decent 60% during the…

Read more »

Dividend Stocks

2 No-Brainer Stocks to Buy With $1,000 Right Now

| Adam Othman

Brookfield Infrastructure Partners stock and goeasy stock are ideal stock picks for investors in the current market environment.

Read more »

analyze data
Dividend Stocks

Where to Invest $1,000? 1 Stock for September 2021

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) is a terrific value stock for TSX investors looking for a prudent place to invest $1,000 this…

Read more »

Dividend Stocks

4 Top Value Stocks to Buy in September 2021

| Sneha Nahata

These TSX stocks look attractive on the valuation front, implying further upside in their prices in the medium to long…

Read more »

Dividend Stocks

3 High-Yield Dividend Stocks You Should Never Sell

| Christopher Liew, CFA

An investment portfolio of only the top dividend payers could set you up for life. The trio of the Bank…

Read more »

Dividend Stocks

Retirees: 2 Safe Stocks to Buy for Your TFSA

| Adam Othman

The Bank of Montreal stock and BCE Inc. stock are two safe stocks to buy and hold in your TFSA…

Read more »

Dividend Stocks

How Does Enbridge (TSX:ENB) Stock Compare to Other Dividend Aristocrats?

| Amy Legate-Wolfe

Enbridge (TSX:ENB)(NYSE:ENB) stock is often touted as a top Dividend Aristocrat, but how does it really stack up against other…

Read more »

Energy Stocks

Suncor Stock: Is This a Good Time to Buy?

| Andrew Walker

Suncor looks cheap at the current share price. Should you buy now or wait for a better entry point?

Read more »

Dividend Stocks

2 Canadian Stocks That Have Beaten All the Odds

| Christopher Liew, CFA

The winning stocks in 2021 are the beaten-down stocks in 2020. Don’t pass up on the Cenovus Energy stock and…

Read more »

Energy Stocks

Buy Now! 2 TSX Stocks With a 340% Return

| Christopher Liew, CFA

Two small-cap stocks delivered more than 340% returns last year. Buy Nuvista Energy stock and Capstone Mining stock now, as…

Read more »

Dividend Stocks

3 TSX Stocks That Could Set You Up for Life

| Christopher Liew, CFA

Be worry-free in the sunset years by setting up a portfolio of Dividend Aristocrats. National Bank of Canada stock, Pembina…

Read more »

money cash dividends
Energy Stocks

Got $1,000? Buy These 4 Top Canadian Stocks

| Rajiv Nanjapla

These four top Canadian stocks could be excellent additions to your portfolio this month.

Read more »

Energy Stocks

The stock Market Is Bearish in September: Fact or Superstition?

| Puja Tayal

How true is the superstition about September's stock market bearishness? This September, who will take charge, bulls or bears? 

Read more »

Dividend Stocks

3 TSX Value Stocks to Pounce on Today While They’re Still on Sale

| Joey Frenette

Canadians should check out A&W Royalties Income Fund (TSX:AW.UN) and two other great dividend value stocks on the TSX today.

Read more »

Dividend Stocks

Passive Income: 2 Dividend Stocks to Buy and Hold Forever

| Adam Othman

Shaw Communications stock and TransAlta Renewables stock are two dividend income stocks that are ideal to buy and hold for…

Read more »

Dividend Stocks

4 of the Best All-Weather Dividend Stocks to Buy in September 2021

| Sneha Nahata

Investors could stick to all-weather dividend-paying stocks for consistent returns. 

Read more »

Dividend Stocks

End Your Market Worries for Good With 2 Time-Tested TSX Titans

| Christopher Liew, CFA

No stock market rally is permanent. The TSX is on a roll but still vulnerable to a market correction. If…

Read more »

Dividend Stocks

2 Top Dividend Stocks That Are Screaming Buys Right Now

| Adam Othman

Enbridge stock and Hydro One stock are screaming buys right now as the S&P/TSX Composite Index continues to reach new…

Read more »

Energy Stocks

TFSA Investors: 2 Cheap Stocks to Own for 2022

| Andrew Walker

These two commodity stocks look undervalued right now ahead of the anticipated 2022 economic rebound.

Read more »

Energy Stocks

Got $1,000? Here Are 2 of the Best Canadian Energy Stocks to Buy in September

| Daniel Da Costa

If you have cash that you're looking to invest today, these two energy stocks are some of the best businesses…

Read more »

Energy Stocks

5 Under-$30 TSX Stocks to Buy With $1,000 in September 2021

| Sneha Nahata

These under-$30 stocks are worth investing in at current price levels.

Read more »

Dividend Stocks

4 Top Dividend Stocks to Buy Under $30

| Rajiv Nanjapla

These four dividend stocks would be an excellent addition to your portfolio.

Read more »

Energy Stocks

3 Canadian Stocks to Buy While They’re Still Cheap

| Nicholas Dobroruka

Don’t let the Canadian stock market’s strong bull run trick you into thinking that there aren’t any deals to be…

Read more »

Dividend Stocks

3 Stocks to Build a Growing Dividend Portfolio

| Christopher Liew, CFA

Take your dividend investing approach to the next level. The trio of Canadian Utilities stock, Canadian Western Bank stock, and…

Read more »

Dividend Stocks

2 Cheap Energy Stocks With Great Dividends to Buy in September

| Andrew Walker

Top energy stocks look undervalued right now for savvy dividend investors.

Read more »

Energy Stocks

2 Stocks on the TSX Today Near 52-Week Lows

| Amy Legate-Wolfe

If you're looking for a solid rebound, these stocks on the TSX today just started trading at 52-week lows, and…

Read more »

Dividend Stocks

2 Energy Stocks to Track as Oil Turns With the Tide

| Adam Othman

After slumping for almost three weeks, oil futures are finally moving in the right direction, and the growth is faster…

Read more »

Dividend Stocks

The 3 Best Under-$50, High-Dividend Stocks to Buy in September 2021

| Jitendra Parashar

Let's look at some of the best fundamentally strong TSX dividend stocks that you can buy in September 2021 to…

Read more »

Energy Stocks

Hottest Oil Play: Buy, Don’t Sell, Suncor Energy (TSX:SU)

| Christopher Liew, CFA

Do you want superior returns in September 2021 and beyond? Buy more of Suncor Energy stock. It’s the hottest oil…

Read more »

Dividend Stocks

4 Reasons to Buy Enbridge (TSX:ENB) Today

| Demetris Afxentiou

Looking for a reason to buy Enbridge (TSX:ENB)(NYSE:ENB) today? Here are four key reasons to consider now when considering this…

Read more »

Dividend Stocks

Renewable Stocks Can Generate Retirement Income

| Demetris Afxentiou

Are you looking to generate retirement income? These renewable energy stocks are great long-term picks to consider buying today.

Read more »

Dividend Stocks

3 Safe Dividend Stocks to Buy Right Now

| Rajiv Nanjapla

These three safe dividend stocks can strengthen your portfolio while also boosting your passive income.

Read more »

Dividend Stocks

3 Dirt-Cheap Value Stocks to Buy in September

| Andrew Button

If you like high-quality dividend stocks, then you'll LOVE Enbridge Inc (TSX:ENB)(NYSE:ENB).

Read more »

Dividend Stocks

The #1 Dividend Stock Investors Should Buy Right Now

| Chris MacDonald

Here's why long-term investors seeking a dividend stock in the energy sector should think about Freehold Royalties (TSX:FRU).

Read more »

Dividend Stocks

Why TC Energy Stock May Be Poised to Outperform in Q3 and Beyond

| Chris MacDonald

Investors seeking a long-term, high-yield equity option may look to TC Energy (TSX:TRP)(NYSE:TRP) stock as a great pick today.

Read more »

Energy Stocks

4 Top Stocks to Buy Before 2022

| Puja Tayal

Here are four stocks that are seeing tepid recovery this year but could see bouts of growth in 2022.

Read more »