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

This Canadian Energy King (and its Fast-Growing Dividend) Is Too Cheap to Ignore!

| Joey Frenette

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) stock has been rewarding shareholders with huge dividend hikes of late, and they may not slow…

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Energy Stocks

Oil Stocks May Start a 2nd Rally in October

| Andrew Button

Oil stocks like Cenovus Energy (TSX:CVE)(NYSE:CVE) could rally in the second half of the year.

Read more »

consider the options
Energy Stocks

Where to Invest $1,000 for the Next 5 Years

| Amy Legate-Wolfe

NPI (TSX:NPI) and these other two strong TSX stocks are perfect for Canadian investors with just $1,000 to invest in…

Read more »

oil and gas pipeline
Energy Stocks

What’s Next for Canadian Natural (TSX:CNQ) Stock After Its Solid Q2 Earnings?

| Vineet Kulkarni

TSX energy stocks will likely keep rewarding shareholders big time,

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

2 Oil Stocks With Mind-Blowing Gains in 1 Year Could Still Rise

| Christopher Liew, CFA

Two oil stocks with mind-blowing returns in one year could climb further if oil demand picks up in winter.

Read more »

oil tank at night
Energy Stocks

Why Cenovus Energy (TSX:CVE) Rose 12% Last Week

| Andrew Button

Cenovus Energy (TSX:CVE)(NYSE:CVE) gained 9.4% last week. Here's why.

Read more »

oil and natural gas
Energy Stocks

Better Buy: Suncor or Cenovus?

| Ambrose O'Callaghan

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) have soared in the year-over-year period.

Read more »

A stock price graph showing declines
Energy Stocks

2 Cheap Canadian Stocks That Likely Won’t Be on Sale For Much Longer

| Nicholas Dobroruka

These two Canadian stocks are close to returning to all-time highs. Don’t miss your chance to take advantage of these…

Read more »

canadian energy oil
Energy Stocks

3 Rising Energy Stocks to Buy as Oil Hits 6-Month Low

| Christopher Liew, CFA

Three rising energy stocks are strong buys today as their upward momentum is likely to continue due to the tight…

Read more »

Retirement plan
Dividend Stocks

4 Stocks That Could Turn $100,000 Into $500,000 by the Time You Retire

| Aditya Raghunath

Companies such as Brookfield Asset Management have the potential to consistently beat the broader markets and deliver stellar returns to…

Read more »

energy industry
Energy Stocks

Vermilion Energy (TSX:VET) Stock Set to Soar Higher After a Solid Q2 Show

| Vineet Kulkarni

Should you buy VET stock?

Read more »

Gas pipelines
Energy Stocks

Unpopular Opinion: Oil Stocks Are Still Good

| Andrew Button

Oil prices are coming down, but oil stocks like Suncor Energy (TSX:SU)(NYSE:SU) are still good.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Energy Stocks

3 Top Commodity Stocks for Passive Dividend Income

| Andrew Button

Commodity stocks like Cameco Corp (TSX:CCO)(NYSE:CCJ) offer dividend income.

Read more »

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

2 Oil Stocks Under $11 With 90-110% Gains So Far This Year

| Christopher Liew, CFA

Two small-cap oil stocks with enormous gains year to date are likely to deliver far superior returns in 2022 versus…

Read more »

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

Suncor Energy (TSX:SU) Could Power Your Portfolio to New Highs

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) is a cheap stock that could unlock value for its longer-term shareholders.

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, August 11

| Jitendra Parashar

Rising commodity prices could take energy and mining shares on the TSX higher at the open today.

Read more »

Oil pumps against sunset
Energy Stocks

2 Top Canadian Energy Stocks to Buy Offering Dividend Yields Above 6%

| Daniel Da Costa

These two top Canadian energy stocks are excellent long-term investments and offer unbelievable dividend yields if you buy them today.

Read more »

energy industry
Energy Stocks

Oil Price: Should You Buy Suncor (TSX:SU) or Canadian Natural Resources (TSX:CNQ) Stock?

| Andrew Walker

Energy stocks are down from the 2022 highs. Investors can now get high dividend yields for Suncor and Canadian Natural…

Read more »

Illustration of bull and bear
Energy Stocks

What’s Next for TSX Energy Stocks as Bears Dominate?

| Vineet Kulkarni

Since June, TSX energy stocks have lost 25% on average, notably underperforming broad market indices.

Read more »

Oil pumps against sunset
Energy Stocks

For the 7th Time in Under 2 Years, Freehold Royalties Stock Increases its Dividend

| Daniel Da Costa

After another record quarter generating funds from operations, Freehold Royalties stock just increased its dividend again!

Read more »

pipe metal texture inside
Energy Stocks

Enbridge (TSX:ENB) Announces $3.6 Billion in New Projects

| Christopher Liew, CFA

Canadians should consider adding more shares of TSX’s top-tier energy stock because of the huge capital program that could deliver…

Read more »

energy oil gas
Dividend Stocks

2 High-Yield Energy Stocks to Buy as Recession Approaches

| Aditya Raghunath

Energy stocks such as TC Energy and Canadian Natural Resources allow investors to generate income even in recessionary times.

Read more »

Dividend Stocks

Passive Income Generator: 1 Dividend Stock Yielding 6.16%

| Christopher Liew, CFA

A high-yield energy stock that pays monthly dividends is a reliable passive income generator for investors.

Read more »

oil and natural gas
Energy Stocks

Why Suncor Energy (TSX:SU) Fell 8% Last Week

| Andrew Button

Suncor Energy stock fell 8% last week. Is it still a good buy?

Read more »

Oil pumps against sunset
Energy Stocks

1 Canadian Oil Stock (With Hot Monthly Dividends) to Buy Now and Hold Forever

| Jitendra Parashar

This top Canadian oil and gas stock could be a great source of reliable monthly passive income.

Read more »

Payday ringed on a calendar
Energy Stocks

3 Incredibly Cheap Canadian Stocks to Buy for Monthly Dividends

| Aditya Raghunath

Companies such as Savaria and Pembina Pipeline pay monthly dividends, making the stocks attractive to income-seeking investors.

Read more »

canadian energy oil
Energy Stocks

Why Oil Prices Crashed 9.5% Last Week

| Andrew Button

Oil stocks like Suncor Energy (TSX:SU)(NYSE:SU) crashed 6% last week. Are they good buys on the dip?

Read more »

Going against the grain
Energy Stocks

RRSP Investors: 1 Top Contrarian Stock to Buy Now

| Andrew Walker

Here's why this top Canadian energy stock with a high dividend yield looks undervalued and good to buy now for…

Read more »

Business man on stock market financial trade indicator background.
Energy Stocks

Market Volatility: 2 Value Stocks to Buy Right Now

| Adam Othman

The market volatility does not look like it will let up any time soon, but these two stocks are too…

Read more »

Economic Turbulence
Energy Stocks

Why Suncor Energy (TSX:SU) Stock Lost 10% Last Week, Despite Record Profits

| Vineet Kulkarni

SU stock has gained 20%, while TSX energy stocks are sitting on decent gains of 33% for the year.

Read more »

Oil pipes in an oil field
Energy Stocks

Soaring Cash Flows: 2 TSX Oil Stocks Are Paying “Special” Dividends

| Christopher Liew, CFA

Two TSX oil stocks have declared payment of special dividends to shareholders in 2022 due to soaring cash flows and…

Read more »

STACKED COINS DEPICTING MONEY GROWTH
Energy Stocks

Canadian Value Investors: 2 Top U.S. Stocks to Buy in August

| Aditya Raghunath

Skechers and Exxon Mobil are two undervalued gems that Canadian investors can buy in 2022. Both stocks may outpace the…

Read more »

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

Passive Income: 2 Dividend-Paying Energy Stocks I’d Buy Now and Hold Forever

| Nicholas Dobroruka

These two energy stocks can provide an investment portfolio with both passive income and market-beating returns.

Read more »

Oil pumps against sunset
Energy Stocks

Oil Falls Below US$90 for 1st Time Since February: 2 Energy Infrastructure Stocks to Buy Today

| Adam Othman

With oil prices decreasing, energy infrastructure stocks might remain solid bets, even if others see a downturn.

Read more »

oil and natural gas
Energy Stocks

Small OPEC+ Oil-Output Hike: Buy More Energy Stocks?

| Christopher Liew, CFA

Energy stocks could soar higher, because oil markets will remain tight due to the small production increase by OPEC+.

Read more »

canadian energy oil
Energy Stocks

3 High-Yield Energy TSX Stocks That Offer Monthly Passive Income

| Vineet Kulkarni

Dividend-paying stocks are generally slow-growing, boring ones. Well, not these ones.

Read more »

green power renewable energy
Energy Stocks

5% Dividends + 20% Growth: Watch This Green Energy Stock

| Vishesh Raisinghani

Dividend-growth stocks like TransAlta Renewable (TSX:RNW) should be on your watch list.

Read more »

Oil pumps against sunset
Energy Stocks

3 Top Energy Stocks to Buy in August

| Andrew Button

Cenovus Energy (TSX:CVE)(NYSE:CVE) is a top oil stock for August 2022.

Read more »

Oil pipes in an oil field
Dividend Stocks

Suncor (TSX:SU) Stock: Buy For the Dividend?

| Adam Othman

Energy bulls might want to consider investing in Suncor stock after another stellar quarter.

Read more »

energy industry
Energy Stocks

3 Canadian Energy Stocks With Incredibly Fast-Growing Dividends

| Robin Brown

There are plenty of bargain-priced Canadian energy stocks today. Here are three that are rapidly growing their dividends.

Read more »