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. 

[KevelPitch adtype=151]

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

analyze data
Energy Stocks

Top 3 Dividend Stocks With Rising Yields

| Vishesh Raisinghani

Dividend stocks like Cenovus (TSX:CVE)(NYSE:CVE) are boosting payouts.

Read more »

edit Businessman using calculator next to laptop
Energy Stocks

Suncor Energy (TSX:SU): What to Expect From its Q1 Earnings

| Vineet Kulkarni

Apart from earnings, Suncor's response to Elliott will be interesting to see.

Read more »

Oil pumps against sunset
Energy Stocks

3 Cheap Energy Stocks to Buy Right Now

| Rajiv Nanjapla

Amid favourable market conditions, these three cheap energy stocks look like excellent buys.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Why I’m Buying Gibson Energy (TSX:GEI) After its Earnings Release

| Ambrose O'Callaghan

Canadian investors on the hunt for value and income should look to snatch up Gibson Energy Inc. (TSX:GEI) after its…

Read more »

oil and natural gas
Energy Stocks

2 Cheap Energy Stocks (With Dividends) to Buy in May 2022

| Jitendra Parashar

With their consistently improving fundamentals, I find these two seemingly cheap energy stocks worth buying in May 2022.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Why MEG Energy Stock Could Keep Surging

| Vineet Kulkarni

Shares of MEG have gained 185% in the past 12 months alone.

Read more »

Oil pipes in an oil field
Energy Stocks

Suncor (TSX:SU): Can Activists Unlock Value?

| Vishesh Raisinghani

Suncor (TSX:SU)(NYSE:SU) could unlock tremendous value if the activist shareholder wins.

Read more »

energy industry
Energy Stocks

Record Earnings: Should You Buy MEG Energy Now?

| Andrew Walker

MEG Energy just reported record earnings. Is the stock a buy?

Read more »

oil tank at night
Energy Stocks

2 TSX Energy Stocks That Are Still Surprisingly Cheap

| Adam Othman

The oil price dip after the release of oil barrel reserves has made several energy stocks temporarily cheaper, and it…

Read more »

Clean energy
Energy Stocks

3 Clean Energy Stocks That Offer Incredible Long-Term Value

| Amy Legate-Wolfe

Clean energy stocks are where many long-term investors should be focusing their attention, and these three have strong reasons to…

Read more »

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

Should You Follow Warren Buffett and Increase Exposure to the Energy Sector?

| Aditya Raghunath

Though energy stocks have crushed the broader markets in the last year, companies part of this industry are highly cyclical.

Read more »

Gas pipelines
Energy Stocks

Oil to $150? Buy These 2 Oil Stocks

| Adam Othman

Oil prices are soaring, and nothing is stopping their rise. These two oil stocks could be excellent investments in light…

Read more »

Business success with growing, rising charts and businessman in background
Energy Stocks

Passive Income: This Canadian Stock TRIPLED its Dividend!

| Andrew Button

Canadian energy company Cenovus Energy (TSX:CVE)(NYSE:CVE) just tripled its dividend.

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, May 2

| Jitendra Parashar

Falling commodity prices and growing fears about an economic slowdown could take TSX stocks downward at the open today.

Read more »

clock time
Energy Stocks

Canadian Natural (TSX:CNQ) Stock: Time to Buy 1 of the TSX’s Hottest Stocks?

| Joey Frenette

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) has been white hot of late, but there are reasons why there's more outperformance to come.

Read more »

oil and natural gas
Energy Stocks

Suncor Energy (TSX:SU): This TSX Commodity Stock Is White Hot Right Now!

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) stock is a top value and energy play that can help Canadian investors navigate through a tough…

Read more »

thinking
Energy Stocks

What’s Next for Precision Drilling (TSX:PD) Stock After its Q1 Loss?

| Vineet Kulkarni

Precision Drilling could continue to trade strong in 2022.

Read more »

energy industry
Energy Stocks

Could Elliott’s Attack Really Create Value for Suncor Energy Investors?

| Vineet Kulkarni

While TSX energy stocks have more than doubled since last year, Suncor Energy stock has remarkably underperformed.

Read more »

Question marks in a pile
Energy Stocks

Crescent Point Energy Stock up 76% in a Year: Is it a Buy at $8.7?

| Puja Tayal

Crescent Point Energy (TSX:CPG)(NYSE:CPG) stock caught investors’ attention as oil prices peaked US$100. Is this stock a buy in its…

Read more »

Gas pipelines
Energy Stocks

Suncor Stock Soars: Should You Buy Now?

| Andrew Walker

Suncor is being targeted by an activist investor. Is this the right time to buy the stock?

Read more »

oil tank at night
Energy Stocks

Oil Stocks Will Deliver a Dividend Bonanza

| Vishesh Raisinghani

Oil stocks like Suncor (TSX:SU)(NYSE:SU) could hike dividends in the months ahead.

Read more »

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

Forget Producers: These Energy Stocks Are the Best to Buy Now

| Daniel Da Costa

The energy sector continues to have several tailwinds, making these high-potential energy stocks some of the best to buy now.

Read more »

oil and natural gas
Energy Stocks

Cenovus (TSX:CVE): Stock Is up 10%. Dividend Is up 200%

| Vishesh Raisinghani

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) had an excellent quarter.

Read more »

pipe metal texture inside
Energy Stocks

Why TC Energy (TSX:TRP) Is 1 of My Top Picks for Income-Seeking Investors

| Vineet Kulkarni

Looking for a safe bet in the energy sector? Consider this dividend giant.

Read more »

Oil pumps against sunset
Energy Stocks

Cenovus (TSX:CVE) Tripled its Dividend Rate!

| Vishesh Raisinghani

Cenovus (TSX:CVE)(NYSE:CVE) tripled its dividend payout.

Read more »

Gas pipelines
Energy Stocks

Is the Market Undervaluing Enbridge Stock?

| Daniel Da Costa

Enbridge is one of the best long-term dividend stocks that Canadian investors can buy. But is it being undervalued by…

Read more »

Oil pipes in an oil field
Energy Stocks

Baytex Energy (TSX:BTE): What to Expect From its Q1 2022 Earnings

| Vineet Kulkarni

This 400% gainer TSX energy stock is readying for next leg of the rally.

Read more »

Caution, careful
Energy Stocks

2 Energy Stocks to Avoid This Month

| Adam Othman

The energy industry might be booming, but these two oil stocks might be too risky to invest in this month.

Read more »

energy industry
Energy Stocks

2 Cheap Energy Stocks to Buy Before April Ends

| Jitendra Parashar

The recent dip in oil prices has led to a sharp correction in these two fundamentally strong energy stocks, making…

Read more »

warning or alert
Energy Stocks

ALERT: Are Energy Stocks Headed Lower This Week?

| Ambrose O'Callaghan

Top Canadian energy stocks like Suncor Energy Inc. (TSX:SU)(NYSE:SU) and others have been hit by volatility and lower oil prices…

Read more »

green energy
Energy Stocks

2 TSX Renewable Energy Stocks to Buy Today

| Joey Frenette

Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) stock looks like a bargain for those seeking renewable energy exposure amid inflation.

Read more »

oil and gas pipeline
Energy Stocks

Top Buy: Canada’s 1st $100 Billion Oil & Gas Producer

| Christopher Liew, CFA

Canada’s first $100 billion oil & gas producer is a must-buy in April 2022 for income investors looking for a…

Read more »

Pipeline
Energy Stocks

Why You Should Buy Enbridge (TSX:ENB)

| Demetris Afxentiou

Are you looking for a long-term stock you should buy for growth and income prospects? That stock is Enbridge (TSX:ENB)(NYSE:ENB),…

Read more »

Gas pipelines
Energy Stocks

Cenovus (TSX:CVE) Stock: 1 TSX Energy Stock to Buy as Oil Stays High

| Joey Frenette

Cenovus Energy (TSX:CVE)(NYSE:CVE) is a top TSX energy stock that could have way more room to run as oil prices…

Read more »

energy industry
Energy Stocks

4 Reasons to Buy Crescent Point Energy Stock in April

| Puja Tayal

Crescent Point Energy (TSX:CPG) stock surged 468% in 18 months and increased its dividend twice by 100% and 50%. More…

Read more »

Arrowings ascending on a chalkboard
Energy Stocks

3 Energy TSX Stocks That Could Explode Next Month

| Vineet Kulkarni

Solid earnings growth could propel TSX energy stocks higher.

Read more »

oil and natural gas
Energy Stocks

Suncor Energy vs. Enbridge: Which Oil Stock Is Better?

| Andrew Button

Enbridge (TSX:ENB)(NYSE:ENB) and Suncor Energy (TSX:SU)(NYSE:SU) are two popular dividend-paying oil stocks. Which is better?

Read more »

oil and natural gas
Energy Stocks

Canadian Natural Resources (TSX:CNQ) Hits a $100 Billion Market Cap: Should You Buy the Stock?

| Ambrose O'Callaghan

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) has grown into an energy heavyweight. Is the stock still worth buying right now?

Read more »

oil tank at night
Energy Stocks

Top 3 Reasons Oil Could Stay Above $100 Throughout 2022

| Vishesh Raisinghani

Oil prices have jumped beyond $100 and could stay there. Watch Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ).

Read more »

Oil pumps against sunset
Energy Stocks

Why Crescent Point Energy Stock Keeps Soaring as Other Energy Falls

| Amy Legate-Wolfe

Crescent Point Energy (TSX:CPG)(NYSE:CPG) stock is one of the few energy companies remaining focused on long-term health.

Read more »