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: 

  • Electric utility companies
  • Liquefied natural gas companies
  • Natural gas companies 
  • Oil companies
  • Renewable energy companies
  • Solar energy companies 

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 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. 

To learn more about Energy Stocks, take a look at our Guide to Energy Stocks for all the details.

Check back here for the most up to date information about energy stocks.

Top Articles

oil tank at night
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

Here's why shares of AQN fell hard last year.

Read more »

energy industry
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 »

Electricity high voltage pole and sky
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 »

Growing plant shoots on coins
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 »

Electric car being charged
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

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

Up by 25%: Is Cenovus Stock a Good Buy in February 2023?

| Adam Othman

After a powerful bullish run, the energy sector in Canada has finally stabilized, and it might be ripe for a…

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Cenovus Stock: Here’s What’s Coming Next

| Karen Thomas, MSc, CFA and Amy Legate-Wolfe

Cenovus stock has rallied strong along with commodity prices. Expect more as the company continues to digest its Husky acquisition.

Read more »

A stock price graph showing growth over time
Energy Stocks

What Share Buybacks Mean for Energy Investors in 2023 and 1 TSX Stock That Could Outperform

| Vineet Kulkarni

Will TSX energy stocks continue to delight investors in 2023?

Read more »

Arrowings ascending on a chalkboard
Energy Stocks

2 Top TSX Energy Stocks That Could Beat Vermilion Energy

| Vineet Kulkarni

TSX energy stocks will likely outperform in 2023. But not all are equally well placed.

Read more »

Gas pipelines
Energy Stocks

Suncor Stock: How High Could it Go in 2023?

| Karen Thomas, MSc, CFA

Suncor stock is starting off 2023 as an undervalued underdog, but after a record year, the company is standing strong…

Read more »

oil and natural gas
Energy Stocks

Should You Buy Emera Stock in February 2023?

| Vineet Kulkarni

Emera stock has returned 9% compounded annually in the last 10 years, including dividends.

Read more »

grow money, wealth build
Energy Stocks

TFSA: Investing $8,000 in Enbridge Stock Today Could Bring $500 in Tax-Free Dividends

| Aditya Raghunath

TSX dividend stocks such as Enbridge can be held in a TFSA to allow shareholders generate tax-free dividend income each…

Read more »

oil and natural gas
Energy Stocks

3 TSX Energy Stocks to Buy if the Slump Continues

| Christopher Liew, CFA

Three energy stocks trading at depressed prices due to the oil slump are buying opportunities before demand returns.

Read more »

Oil pipes in an oil field
Energy Stocks

Looking for a Safe Investment? Consider Gibson Energy Stock

| Daniel Da Costa

Gibson Energy stock is a well-run energy infrastructure company that has improved its operations in recent years to become much…

Read more »

oil and natural gas
Dividend Stocks

Suncor Beat Estimates: Is SU Stock a Buy Now?

| Vineet Kulkarni

SU stock has returned 25% in the last 12 months, which is in line with TSX energy stocks.

Read more »

money cash dividends
Energy Stocks

1 Dirt-Cheap Stock That Could Skyrocket

| Joey Frenette

Hydro One stock continues to be an attractive value play for cautious investors seeking low volatility and income growth.

Read more »

thinking
Energy Stocks

Could Vermilion Energy Stock Breach $40 Levels in 2023?

| Vineet Kulkarni

Should you buy Vermilion Energy stock now?

Read more »

Target. Stand out from the crowd
Energy Stocks

Tourmaline Oil Stock: How High Could It Go in 2023?

| Vineet Kulkarni

Should you buy Tourmaline Oil stock now?

Read more »

oil and gas pipeline
Energy Stocks

Enbridge Stock: Here’s What’s Coming Next

| Chris MacDonald

Here's why Enbridge's (TSX:ENB) dividend track record makes Enbridge stock a top candidate for long-term investors seeking passive income.

Read more »

Gas pipelines
Energy Stocks

What’s Ahead for Suncor Energy Stock in 2023?

| Vineet Kulkarni

Will Suncor Energy stock outperform in 2023?

Read more »

Oil pumps against sunset
Energy Stocks

Value Investors, Get Ready! 2 TSX Energy Stocks Are Actually Starting to Look Like Deals

| Adam Othman

A good time to keep an eye on the sector and some of its most promising constituents is when the…

Read more »

A stock price graph showing growth over time
Energy Stocks

Why Imperial Oil Stock Rose Almost 15% Last Month

| Puja Tayal

Imperial Oil stock rallied 15% in January, outperforming other oil stocks. Is this stock price rally here for the longer…

Read more »

Target. Stand out from the crowd
Energy Stocks

If I Could Only Buy 1 Stock Right Now, This Would Be it

| Nicholas Dobroruka

There’s a lot to like about Brookfield Renewable Partners (TSX:BEP.UN). Here’s why it’s at the top of my watch list…

Read more »

Solar panels and windmills
Energy Stocks

2 Green Energy Stocks to Feel Good About Owning

| Adam Othman

The right green stocks don't just offer you "moral gains" and satisfaction. They also help you with good financial gains…

Read more »

energy industry
Energy Stocks

Is Baytex Energy Stock a Buy?

| Andrew Walker

Baytex Energy is on the rebound after a nasty multi-year plunge. Is now the time to buy the stock?

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

2 Energy Stocks Packed With Potential in Today’s Market

| Joey Frenette

Canadian Natural Resources (TSX:CNQ) and another underrated energy giant look worth buying right now for dividends and value.

Read more »

energy industry
Energy Stocks

Is Cenovus Stock a Buy in February 2023?

| Chris MacDonald

Here's why I think Cenovus (TSX:CVE) stock is a buy in February for investors with a reasonably long time horizon.

Read more »

oil and gas pipeline
Energy Stocks

Payouts at This Canadian Dividend Aristocrat Are Growing Fast

| Karen Thomas, MSc, CFA

Tourmaline stock has been paying out special dividends as it positions itself for continued growth from natural gas exports.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

The 2 Best Energy Stocks for Growing Passive Income

| Robin Brown

Get a passive-income boost by buying these top TSX energy stocks that keep buying back stock and raising their dividends.

Read more »

Gas pipelines
Energy Stocks

Passive-Income Seekers: 3 Top Canadian Energy Stocks to Buy Today

| Chris MacDonald

These three top energy stocks are must-buys for long-term investors looking to boost their exposure to this sector in 2023.

Read more »

Arrow descending on a graph
Energy Stocks

Why Tourmaline Oil Stock Plunged 13% in January 2023

| Vineet Kulkarni

Despite the recent plunge, Tourmaline Oil stock is an appealing bet.

Read more »

Golden crown on a red velvet background
Energy Stocks

3 Canadian Dividend Aristocrats to Buy and Hold for Passive Income

| Christopher Liew, CFA

Are you seeking safer options amid elevated market volatility? Consider these three Canadian dividend aristocrats to receive uninterrupted passive income…

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

Suncor Energy Stock: Has it Bottomed Out?

| Andrew Button

Suncor Energy Inc (TSX:SU) stock has been falling lately. Has it bottomed out yet?

Read more »

A stock price graph showing growth over time
Energy Stocks

Vermilion Energy Stock: A Severely Oversold Growth Bargain to Buy and Hold

| Christopher Liew, CFA

One oversold energy stock trading at a deep discount is a screaming buy for growth or value investors.

Read more »

oil tank at night
Energy Stocks

2 Top TSX Energy Stocks to Buy in February 2023

| Andrew Walker

Top TSX energy stocks now appear oversold.

Read more »

Oil pumps against sunset
Energy Stocks

Vermilion Energy Stock Is Down 50% From Its High: Is It a Bargain Buy Today?

| Vineet Kulkarni

TSX energy stocks have had a positive start in 2023, while VET stock has been consistently weak.

Read more »

Oil pumps against sunset
Energy Stocks

2 TSX Energy Stocks That Could Break Through the Roof in 2023

| Vineet Kulkarni

Two energy stocks that seem well-placed to play the next leg of the crude oil rally.

Read more »

The sun sets behind a high voltage telecom tower.
Energy Stocks

2 Utilities Stocks With Sought-After Stability

| Chris MacDonald

Here's why Fortis and Hydro One are two top utilities stocks long-term investors may want to consider right now.

Read more »

Choose a path
Energy Stocks

Algonquin Power Stock: A Smart Investment or a Value Trap?

| Vineet Kulkarni

Does APQ stock have more surprises for investors like last year?

Read more »

Oil pumps against sunset
Energy Stocks

Canadian Energy Stocks: Here’s Your Best Bet in February 2023

| Sneha Nahata

Want to bet on energy stocks in 2023? Try this Canadian stock for solid income and growth.

Read more »

a person watches a downward arrow crash through the floor
Energy Stocks

Why ARC Resources Stock Plunged 17% in January 2023

| Vineet Kulkarni

Should you buy ARC Resources stock now?

Read more »

oil tank at night
Energy Stocks

Is CNQ Stock a Buy in February 2023?

| Karen Thomas, MSc, CFA

Canadian Natural Resources stock has many things going for it, including its strong dividend history, as well as cash flow…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, February 2

| Jitendra Parashar

More corporate earnings reports could give further direction to TSX stocks today.

Read more »

oil and gas pipeline
Energy Stocks

Better Buy: Suncor Stock or Enbridge?

| Rajiv Nanjapla

Amid the favourable environment, would you be better off investing in ENB or SU energy stock right now?

Read more »

Electric car being charged
Energy Stocks

Your Play to Get in on the 2023 EV Boom

| Chris MacDonald

Here's why Magna International may be the best way for Canadian investors to ride the EV boom.

Read more »