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

calculate and analyze stock
Energy Stocks

The 3 Top TSX Energy Stocks to Buy in July 2021

| Nicholas Dobroruka

Now is the time to be loading up on top renewable energy stocks. Here are three picks that should be…

Read more »

Energy Stocks

The 5 Best Canadian Stocks I’d Buy With $500 Right Now

| Sneha Nahata

Investing in stocks can be highly rewarding for investors who can stay invested for a very long period.

Read more »

Energy Stocks

ESG vs. Suncor Stock: Which One Will Win?

| Chris MacDonald

Investors in Suncor Energy (TSX:SU)(NYSE:SU) and Suncor stock certainly have reason to be bullish on this pure-play energy producer right…

Read more »

Dividend Stocks

Enbridge (TSX:ENB) Stock: Outlook for the Rest of 2021

| Christopher Liew, CFA

The Enbridge stock is likely to stay the course for the rest of 2021. With the economic recovery underway and…

Read more »

Dividend Stocks

Got $1,000? 3 Top TSX Stocks to Buy Right Now

| Vineet Kulkarni

Are you concerned about the much-talked market crash after such a steep rally? Notably, TSX stocks at large look in…

Read more »

Dividend Stocks

Got $2,000? 3 Stocks to Buy to Ride Out This Bull Market

| Adam Othman

Constellation Software stock, Brookfield Asset Management stock, and Toronto-Dominion Bank stock could be ideal stocks to buy right now.

Read more »

Stocks for Beginners

4 of the Best TSX Stocks to Buy if the Market Falls in July

| Jitendra Parashar

Here’s a list of four Canadian stocks to buy if the market falls this month due to investors’ seemingly temporary…

Read more »

Dividend Stocks

2 Top Energy Stocks to Buy in Canada

| Christopher Liew, CFA

Value and growth investors should be excited to invest in the red-hot energy sector in Q3 2021. Suncor Energy stock…

Read more »

Dividend Stocks

No Retirement Savings? 3 Stocks to Stash Your 1st $10,000

| Christopher Liew, CFA

Dividend investing is the proven way if you have nothing yet saved for retirement. Invest $10,000 initially in Bank of…

Read more »

Stocks for Beginners

3 Top TSX Stocks to Buy Before This Earnings Season Starts

| Jitendra Parashar

Here are three top TSX stocks that long-term investors can buy before their upcoming earnings events in July.

Read more »

Energy Stocks

3 Top TSX Stocks That You Can Buy on Sale Today

| Nicholas Dobroruka

The market is trading at all-time highs, but there are still plenty of deals to be had. Put these three…

Read more »

Energy Stocks

Beginner Investors: Be Like Warren Buffett With These 2 Top TSX Stocks

| Chris MacDonald

These two top Canadian Warren Buffett-affiliated stocks are ones investors should consider in this current environment.

Read more »

Dividend Stocks

4 Reasons to Buy Enbridge (TSX:ENB) Now

| Demetris Afxentiou

Have you invested in Enbridge (TSX:ENB)(NYSE:ENB) yet? There are plenty of reasons to buy Enbridge right now, and all of…

Read more »

Dividend Stocks

Earn $400 Per Month From 2 Dividend Machines

| Christopher Liew, CFA

The Enbridge stock and Alaris stock are dividend machines for their high dividend yields. Canadians can accumulate shares to earn…

Read more »

Dividend Stocks

Canadian Retirees: How to Avoid the 15% CRA OAS Clawback

| Adam Othman

Investing in Pembina Pipeline stock can help you generate significant passive income and avoid the dreaded 15% OAS clawback during…

Read more »

Energy Stocks

Forget Oil Stocks: Invest in These Instead

| Vishesh Raisinghani

Oil stocks are rebounding, but Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is a better long-term bet.

Read more »

Energy Stocks

Could Rogers (TSX:RCI.B) Outperform Telus (TSX:T) When it Becomes the 2nd-Largest Telco?

| Christopher Liew, CFA

A looming merger in the telecom sector could alter the balance of power. Rogers Communications stock might outperform Telus stock,…

Read more »

close-up photo of investor Warren Buffett
Dividend Stocks

3 Former Buffett Stocks Are the Best Value Buys Today

| Christopher Liew, CFA

The three TSX stocks Warren Buffett ditched are the best value buys in 2021. You can take positions in Suncor…

Read more »

Energy Stocks

A Top Canadian Stock to Buy Right Now With $500

| Nikhil Kumar

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) has a defined pathway that is driving a long-term reduction of carbon emissions through an…

Read more »

Dividend Stocks

Passive-Income Investors: 3 Top Stocks to Buy Today

| Adam Othman

BCE stock, Enbridge stock, and TransAlta Renewables stock are ideal stock picks for passive-income-seeking investors today.

Read more »

Dividend Stocks

3 High-Yielding Dividend Stocks to Buy Right Now

| Rajiv Nanjapla

Given their solid business model, steady cash flows, and regular payouts, these three stocks can boost your passive income while…

Read more »

Dividend Stocks

Retirees: Can You Survive on ONLY the OAS and CPP Pension?

| Christopher Liew, CFA

Future Canadian retirees should evaluate carefully whether they can survive with only the OAS and CPP pensions. The Pembina Pipeline…

Read more »

Energy Stocks

Why Suncor Stock Could Continue to Outperform Into the Fall

| Chris MacDonald

Here's why investors in Suncor Energy (TSX:SU)(NYSE:SU) and Suncor stock may want to sit tight with this energy gem today.

Read more »

Dividend Stocks

2 Energy and Financial TSX Stocks to Buy Now

| Joey Frenette

Manulife Financial (TSX:MFC)(NYSE:MFC) is just one of two great TSX stocks to buy in the white-hot sectors powering the Canadian…

Read more »

analyze data
Energy Stocks

2 TSX Energy Stocks to Buy for a Year-End Rally

| Joey Frenette

Cenovus Energy (TSX:CVE)(NYSE:CVE) is one of two TSX energy stocks that Canadian investors should buy to outperform in 2021's second…

Read more »

Dividend Stocks

Got $1,000? Buy These 3 Under-$30 Dividend Stocks

| Rajiv Nanjapla

Amid the rising volatility in the equity markets, investors could strengthen their portfolios by adding high-quality dividend stocks.

Read more »

Tech Stocks

This Dirt-Cheap Canadian EV Stock Is a Screaming Bargain

| Joey Frenette

NFI Group (TSX:NFI) is one Canadian EV stock that trades like a dirt-cheap bargain and it could be in for…

Read more »

Dividend Stocks

2 of the Best Canadian Dividend Stocks to Add to Your TFSA This Summer

| Stephanie Bedard-Chateauneuf, MBA

Bank of Montreal (TSX:BMO)(NYSE:BMO) and Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) are two of the best dividend stocks to add to your…

Read more »

Dividend Stocks

Canadian Investors: 2 Top Stocks to Buy This Summer

| Adam Othman

Brookfield Asset Management stock and Canadian National Railway stock are attractive stock picks that you could add to your portfolio…

Read more »

Energy Stocks

Could the Market Rally Continue in Q3 2021?

| Jitendra Parashar

These reasons could be hurting investors’ sentiments lately -- triggering a market-wide selloff. However, I still expect the broader market…

Read more »

Dividend Stocks

Oil Price Falls: What Should You Do?

| Puja Tayal

The energy and finance-heavy TSX Composite Index dipped 1.3% as oil prices fell due to supply disputes. What does this…

Read more »

Energy Stocks

Green Energy: 3 Top Canadian Stocks to Buy Now

| Daniel Da Costa

Renewable energy is one of the best industries to invest in for growth. Here are three of the top green…

Read more »

Dividend Stocks

Here’s the Max Amount of CPP Pension You Can Get in 2021

| Christopher Liew, CFA

CPP users can receive the maximum payout if they contributed enough to the program. However, if you expect to receive…

Read more »

Energy Stocks

3 Under-$10 Canadian Energy Stocks to Buy Today

| Jitendra Parashar

Despite the ongoing short-term correction, a continued recovery in oil prices and strong energy demand make these three energy stocks…

Read more »

Dividend Stocks

What Roiled the Global Energy Markets This Week?

| Vineet Kulkarni

Global energy markets shook this week after OPEC+ talks collapsed, which could cause oil prices to change course in the…

Read more »

Dividend Stocks

3 Defensive Stocks That Could Strengthen Your Portfolio

| Rajiv Nanjapla

Given their recession-proof business models and steady cash flows, these three defensive stocks could shield your investments from market fluctuations.

Read more »

Dividend Stocks

The 3 Smartest Stocks to Buy Today

| Christopher Liew, CFA

Canadians have three excellent investment choices today. The smartest buys are Goodfood Market stock, Jamieson Wellness stock, and Imperial Oil.…

Read more »

Energy Stocks

Got $500? 3 Under $30 TSX Stocks to Buy Right Now

| Aditya Raghunath

Stocks such as Air Canada, Suncor, and WELL Health might help you derive outsized gains in the next year.

Read more »

Energy Stocks

Why This TSX Stock Just Popped +9% Yesterday

| Kay Ng

Before you think about investing in small-cap stocks, check out this example first. If you invest in the space, expect…

Read more »

Dividend Stocks

1 Top Stock to Play the Energy Sector Rebound

| Andrew Walker

Investors can still find good deals in the energy sector. Here's why this top stock looks undervalued.

Read more »