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

Worried About Market Volatility? 3 Top TSX Stocks to Buy Today

| Vineet Kulkarni

A reasonable portion of your portfolio in stable, dividend-paying TSX stocks will come in handy in volatile markets.

Read more »

Energy Stocks

3 Top Dividend Stocks to Buy Under $30

| Rajiv Nanjapla

Given their stable cash flows and healthy dividend yields, these three top dividend stocks can boost your passive income.

Read more »

Energy Stocks

Canadian Stocks You Should Be Ready to Buy

| Christopher Liew, CFA

Take advantage of the energy sector's rebound to earn generous income in 2021 and beyond. Be ready to buy the…

Read more »

Dividend Stocks

My 2 Favourite Canadian Stocks Right Now

| Adam Othman

Shopify stock and Brookfield Renewable Partners stock are my favourite Canadian stocks today for outsized, long-term returns.

Read more »

Dividend Stocks

3 Monthly Dividend Stocks Under $50 With Over 6% Yields

| Sneha Nahata

Monthly dividend payouts are frequent and appeal more as they supplement one’s income.

Read more »

Dividend Stocks

Why My Outlook on Suncor Energy Stock Is Changing

| Chris MacDonald

Investors have a lot to like about Suncor Energy (TSX:SU)(NYSE:SU) and Suncor Energy stock, but is the company's valuation stretched?

Read more »

Dividend Stocks

Worried About a Market Pullback? Buy These 2 Stocks Right Now

| Chris MacDonald

Investors worried about the potential for a market crash should consider Fortis (TSX:FTS)(NYSE:FTS) and Kirkland Lake Gold (TSX:KL)(NYSE:KL).

Read more »

Energy Stocks

Like Suncor Stock? 3 More Energy Stocks to Consider 1st

| Kay Ng

Before you buy Suncor (TSX:SU)(NYSE:SU) stock, take a closer look at these other energy stocks that have been more reliable!

Read more »

Stocks for Beginners

Got $500? 3 Top TSX Stocks to Buy Today

| Jitendra Parashar

Canadian investors can buy three of the best TSX stocks with an investment of as low as $500 to gain…

Read more »

Energy Stocks

2 Top Canadian Stocks to Buy Right Now

| Nicholas Dobroruka

If you’re a long-term investor, you’ll want to have these two top Canadian stocks on your watch list right now.

Read more »

Dividend Stocks

2 Beaten-Down TSX Energy Stocks That Are Screaming Buys

| Vineet Kulkarni

Let’s see why this could be a short-term blip, and long-term investors could make the most of it by buying…

Read more »

Energy Stocks

2 Cheap Energy Stocks for Oil Bulls to Buy

| Andrew Walker

These two energy stocks look undervalued right now. Here's why.

Read more »

Dividend Stocks

1 of the Cheapest TSX Energy Stocks to Buy for the Dividend

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) is a TSX energy stock that is rolling over right now, but should contrarians attempt to catch…

Read more »

Dividend Stocks

2 Top Oil Stocks to Buy Today

| Adam Othman

Not all oil stocks are pretty attractive buys right now, thanks to the recent growth momentum, but there are two…

Read more »

Dividend Stocks

2 High-Yield Dividend Stocks to Buy Right Now

| Adam Othman

NorthWest Healthcare Properties REIT and Pembina Pipeline stock are two high-yield dividend stocks that could make you much wealthier in…

Read more »

Dividend Stocks

3 Generous Dividend Stocks Yielding up to 7%

| Christopher Liew, CFA

Boost your investment income with the least-celebrated but high-yield TSX stocks. Keyera stock, Acadian Timber stock, and Timbercreek Financial stock…

Read more »

Energy Stocks

2 Top Energy Stocks to Buy Right Now

| Chris MacDonald

Here's why investors seeking top energy stocks should consider Northland Power (TSX:NPI) and Cenovus Energy (TSX:CVE)(NYSE:CVE).

Read more »

Energy Stocks

Forget Suncor: 2 Top Energy Stocks to Buy Instead

| Daniel Da Costa

Energy stocks are some of the best to buy now. But rather than considering an investor favourite like Suncor, here…

Read more »

Dividend Stocks

3 Bargain Stocks to Buy on the TSX Today

| Adam Othman

A good bargain is hard to pass up, especially when it comes to stocks and there is decent growth potential…

Read more »

Energy Stocks

Suncor Stock vs. CNQ Stock: Buy, Hold, or Sell?

| Kay Ng

Suncor (TSX:SU)(NYSE:SU) stock could be a lucrative investment, but here's why you might want to wait a few months before…

Read more »

Dividend Stocks

1 of the Best Canadian Dividend Stocks to Fund an Early Retirement

| Joey Frenette

Enbridge (TSX:ENB)(NYSE:ENB) is a top Canadian dividend stock worth considering for young Canadian investors looking to retire early.

Read more »

Dividend Stocks

2 Large-Cap Stocks to Own for Decades

| Christopher Liew, CFA

If you’re a conservative investor, invest in large-cap stocks for income stability. You can own the Enbridge stock and Canadian…

Read more »

Energy Stocks

1 Top Stock to Buy Now for 2022

| Andrew Walker

This leading Canadian energy stock looks undervalued right now. Here's why.

Read more »

Dividend Stocks

The 2 Best Canadian Stocks to Buy While They’re Still Cheap

| Nicholas Dobroruka

Canadian stocks are soaring, but there are still deals to be had. These two top companies are trading at bargain…

Read more »

Energy Stocks

Got $500? 3 TSX Stocks That Are Too Cheap to Ignore

| Sneha Nahata

These TSX stocks are too cheap to ignore at current price levels.

Read more »

Dividend Stocks

2 Reasons Why Enbridge Stock Remains a Buy in August 2021

| Chris MacDonald

Here's why I think long-term investors ought to consider Enbridge (TSX:ENB)(NYSE:ENB) stock today.

Read more »

Dividend Stocks

The Best Canadian Stocks to Buy This Summer

| Karen Thomas, MSc, CFA

Read on to find out why Fortis, Peyto Exploration, and Well Health stocks are the three best Canadian stocks to…

Read more »

Energy Stocks

Canada’s Top Energy Stock Set to Outperform

| Nikhil Kumar

Imperial Oil Ltd. (TSX:IMO)(NYSE:IMO) has overcome adversity and not only recovered but also embraced the opportunity ahead.

Read more »

Dividend Stocks

Income Investors: 2 TSX Stocks Have Raised Dividends for 21 Consecutive Years

| Christopher Liew, CFA

Canadian Natural Resources stock and TC Energy stock offers growing dividends for income investors.

Read more »

Energy Stocks

4 Energy Stocks to Buy for the Next Decade

| Amy Legate-Wolfe

Energy stocks are changing, so Motley Fool investors can prepare for the next decade of shifts with these four stocks.

Read more »

Energy Stocks

3 Top TSX Energy Stocks Under $50 to Buy Right Now

| Sneha Nahata

I see further upside in energy stocks, reflecting increased economic activities, volumes, and commodity prices. 

Read more »

Dividend Stocks

Top TSX Stocks: 3 Spectacular Buys for August 2021

| Vineet Kulkarni

TSX stocks at large will likely resume their upward climb as vaccination rates gains momentum in the next few months.

Read more »

Energy Stocks

1 Top Canadian Dividend Stock to Buy and Own Forever

| Robin Brown

Looking for a dividend stock to buy and never sell? This top Canadian dividend-growth stock has a great outlook for…

Read more »

Dividend Stocks

Buy Alert: Pembina (TSX:PPL) Secures 3 Partnerships for Future Growth

| Christopher Liew, CFA

High-yield Pembina stock is a screaming buy, notwithstanding the lost bid to acquire a rival energy company. Despite the botched…

Read more »

Dividend Stocks

Income Investors: Buy These 4 Top Monthly-Paying Dividend Stocks

| Rajiv Nanjapla

Boost your passive income with these four high-yielding dividend stocks.

Read more »

Dividend Stocks

3 Top TSX Stocks to Buy in August 2021

| Chris MacDonald

Investors looking for top TSX stocks have come to the right place. In this article, I'll highlight three of the…

Read more »

Energy Stocks

1 Top TSX Energy Stock to Buy in August 2021

| Chris MacDonald

Here's why investors looking for a top TSX energy stock may want to consider Crescent Point Energy (TSX:CPG)(NYSE:CPG) today.

Read more »

Energy Stocks

3 Top Energy Stocks to Buy Right Now!

| Karen Thomas, MSc, CFA

Read on to find out why Canadian Natural Resources, Cenovus Energy, and Peyto Exploration are 3 energy stocks to buy…

Read more »

Make a choice, path to success, sign
Dividend Stocks

Passive Income: 4 Top TSX Stocks to Buy Now

| Sneha Nahata

If you are building a portfolio, it's wise to add a few high-quality dividend stocks.

Read more »

Caution, careful
Metals and Mining Stocks

3 Canadian Stocks to Avoid Like the Plague in August

| Andrew Button

With oil prices falling, Baytex Energy (TSX:BTE) is looking like a stock to avoid in August.

Read more »