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

2 Stocks With Tremendous Returns in 2021

| Christopher Liew, CFA

Obscure names are lording it over popular stocks in 2021. Pick those with tremendous returns, such as Nuvista Energy stock…

Read more »

Energy Stocks

2 Top TSX EV Stocks to Buy Right Now

| Chris MacDonald

Both NFI Group (TSX:NFI) and Martinrea (TSX:MRE) aren't typically considered EV stocks, but could be moving in this direction in…

Read more »

Energy Stocks

Building a Great Portfolio? Start With This Cheap Stock

| Nikhil Kumar

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) appears committed to sustainable, growing returns to shareholders and reducing the company's environmental footprint through…

Read more »

Energy Stocks

Got $1,000? 2 Top Energy Stocks to Buy and Hold for Decades

| Daniel Da Costa

These two energy stocks are not only priced attractively, but they are some of the top businesses to buy and…

Read more »

Dividend Stocks

3 Top Canadian Stocks to Buy This Month

| Adam Othman

Lightspeed POS stock, Royal Bank of Canada stock, and Northland Power stock are top Canadian stock picks for you to…

Read more »

Dividend Stocks

3 Hard-Hit TSX Dividend Growth Stocks to Buy and Hold Forever

| Joey Frenette

Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) and two other TSX dividend growth stocks that Canadians would be smart to buy on the…

Read more »

Dividend Stocks

Why am I Bullish on Pipeline Stocks?

| Puja Tayal

Pipeline stocks have been making news, as oil prices soar to a three-year high. But there is a lot more…

Read more »

Dividend Stocks

How This TSX Energy Midstream Stock Became the Best Performer Among Peers

| Vineet Kulkarni

One TSX energy midstream stock has been on the sharp run this year. Inter Pipeline (TSX:IPL) has returned 80% so…

Read more »

Dividend Stocks

2 Top Energy Stocks Investors Should Buy Right Now

| Chris MacDonald

Two of the top energy stocks investors should consider right now are Altagas (TSX:ALA) and Cenovus Energy (TSX:CVE)(NYSE:CVE).

Read more »

Dividend Stocks

Earn $250 Per Month Passive Income With This 6.3% Dividend Stock

| Christopher Liew, CFA

The Pembina Pipeline stock is preferred by many dividend investors. Besides the more than 6% yield, the periodic payout is…

Read more »

Dividend Stocks

Enbridge Stock vs. TC Energy: Which TSX Dividend Heavyweight to Buy?

| Joey Frenette

Enbridge (TSX:ENB)(NYSE:ENB) and TC Energy (TSX:TRP)(NYSE:TRP) stocks are great dividend heavyweights for value-seeking TSX investors.

Read more »

Dividend Stocks

Why Housing Prices Keep Rising

| Adam Othman

Northwest Healthcare REIT could be a far better alternative to investment properties, as housing prices keep rising, despite all concerns.

Read more »

Dividend Stocks

Retirees: Here’s 1 Awesome Trick to Boost Your CPP Pension

| Christopher Liew, CFA

Delaying the payments past 65 is the simplest way to boost your CPP pension. However, it would be best if…

Read more »

Dividend Stocks

Enbridge (TSX:ENB): A Top Discounted Energy Stock to Buy Right Now

| Adam Othman

Enbridge stock could be an ideal buy right now amid the energy sector boom, as the economy reopens and its…

Read more »

Dividend Stocks

3 Reliable Canadian Dividend Stocks I’d Buy With $300

| Sneha Nahata

These Canadian stocks could generate regular income, are relatively stable, and are likely to enhance your portfolio’s overall returns in…

Read more »

Energy Stocks

Why Are Oil Stocks Lagging the Price of Oil?

| Vishesh Raisinghani

Oil stocks like Suncor Energy (TSX:SU)(NYSE:SU) have underperformed oil. This could be a contrarian opportunity.

Read more »

Dividend Stocks

Go Big or Go Home With These 3 Mega-Cap Stocks

| Chris MacDonald

These three top mega-cap stocks are among the best in Canada for investors seeking excellent long-term portfolio returns.

Read more »

Dividend Stocks

Bet on Clean Energy With This Top TSX Stock Right Now

| Chris MacDonald

In the clean energy sector, Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) doesn't get the love it deserves among investors right now.

Read more »

Dividend Stocks

Why Inter Pipeline (TSX:IPL) Stock Surged 3.25% Today

| Puja Tayal

Inter Pipeline (TSX:IPL) stock surged 3.25% after Brookfield Infrastructure Partners upped its bid. How can you profit from this? 

Read more »

Energy Stocks

3 Energy Stocks That Are Still Undervalued

| Ambrose O'Callaghan

Softer oil prices should not stop investors from targeting undervalued energy stocks like Suncor Energy Inc. (TSX:SU)(NYSE:SU) today.

Read more »

Energy Stocks

2 of the Best TSX Energy Stocks to Buy in July 2021

| Robin Brown

Energy stocks have helped propel the TSX Index in 2021. Yet there are still some attractive value opportunities that can…

Read more »

Dividend Stocks

The CRB Extension Is Here: The $300/Week CRB Starts From July 18

| Puja Tayal

The CRA has reduced the CRB amount from $500/week to $300/week. The new CRB will apply from the periods starting…

Read more »

Dividend Stocks

2 Top TSX Dividend Stocks to Buy and Hold Forever

| Chris MacDonald

Among Canadian dividend stocks, Enbridge (TSX:ENB)(NYSE:ENB) and Fortis (TSX:FTS)(NYSE:FTS) are among the best choices today.

Read more »

Energy Stocks

Got $1,000? 3 Undervalued Canadian Stocks to Buy Under $30

| Rajiv Nanjapla

Given their attractive growth prospects and valuations, these four Canadian stocks provide excellent buying opportunities.

Read more »

Energy Stocks

These 2 TSX Stocks Could Rally in the Next Couple of Weeks

| Jitendra Parashar

Here are two amazing TSX stocks that could start a rally in the coming week as we enter the latest…

Read more »

stock research, analyze data
Energy Stocks

4 Top TSX Energy Stocks to Buy Amid Surging Oil Prices

| Jitendra Parashar

Here's a list of four of the best TSX energy stocks to buy today amid rising oil prices.

Read more »

Energy Stocks

Suncor Energy (TSX:SU) vs. Enbridge (TSX:ENB): Which Oil Stock Is Better?

| Andrew Button

Enbridge Inc (TSX:ENB)(NYSE:ENB) and Suncor Energy Inc (TSX:SU)(NYSE:SU) are both top Canadian energy stocks. Which one is better?

Read more »

Dividend Stocks

3 Canadian Energy Stocks to Buy as the Crude Oil Rally Heats Up

| Vineet Kulkarni

The global energy markets seem unstoppable this year. Here are three Canadian energy stocks to play the crude oil price…

Read more »

Energy Stocks

The 3 Best Energy Stocks Priced Below $100 to Buy Right Now

| Sneha Nahata

The steady increase in economic activities, ongoing vaccination, and higher average realized prices could continue to boost energy stocks.

Read more »

Dividend Stocks

Why I’d Buy Suncor on Strength Over BlackBerry on Weakness

| Joey Frenette

BlackBerry (TSX:BB)(NYSE:BB) is rolling over, but here is why investors may want to go for the easier money with Suncor…

Read more »

Dividend Stocks

3 Canadian Stocks to Boost Your Retirement Income

| Vineet Kulkarni

If you are looking for stable investment options, here are three Canadian stocks for long-term investors.

Read more »

Dividend Stocks

Buy These 4 Monthly-Paying Dividend Stocks to Boost Your Passive Income

| Rajiv Nanjapla

Given their stable cash flows, healthy growth prospects, and high dividend yields, these four dividend stocks could boost your passive…

Read more »

Energy Stocks

RRSP Investors: 1 Undervalued Canadian Stock to Buy Right Now

| Andrew Walker

RRSP investors can still find deals in the current market.

Read more »

Dividend Stocks

2 High-Yield Dividend Stocks to Buy and Never Sell

| Adam Othman

Enbridge stock and BCE stock are high-yield dividend stocks that are cash cows you should buy and hold forever in…

Read more »

Dividend Stocks

3 Top TFSA Stocks for July 2021

| Andrew Button

Tech stocks like Constellation Software Inc (TSX:CSU) are looking good in July 2021.

Read more »

Dividend Stocks

The Top Canadian Stock to Buy Right Now

| Nikhil Kumar

Enbridge Inc. (TSX:ENB)(NYSE:ENB) assesses the latest fundamental trends, monitors the business landscape, and proactively conducts business development activities.

Read more »

Dividend Stocks

Dogecoin and Lumber Lose Their Sheen, But These TSX Stocks Keep Climbing

| Vineet Kulkarni

Are you uncomfortable with the crypto volatility? Consider following TSX stocks that offer low-risk, moderate return prospects for the long…

Read more »

Energy Stocks

4 Top Dividend Stocks to Buy Amid Rising Volatility

| Rajiv Nanjapla

Amid the volatile environment, these four dividend stocks could deliver stable passive income and strengthen your portfolio.

Read more »

Dividend Stocks

5 Stocks to Begin the 2nd Half of 2021

| Puja Tayal

The second half of 2021 holds the promise of recovery and seasonality. These five stocks have the potential to surge…

Read more »

Dividend Stocks

4 Top Monthly-Paying Dividend Stocks to Buy Right Now

| Sneha Nahata

While plenty of dividend stocks listed on the TSX pay a quarterly dividend, these four companies offer monthly payouts.

Read more »