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

green power renewable energy
Energy Stocks

Why I’m Buying Algonquin

| Demetris Afxentiou

Despite Algonquin Power & Utilities dropping 50% this year, there's still long-term potential . Here's why I'm buying Algonquin.

Read more »

oil and gas pipeline
Energy Stocks

TFSA Passive Income: Should You Invest in Enbridge Stock Right Now?

| Andrew Walker

Enbridge stock offers a high dividend yield with a strong track record of payout growth.

Read more »

Retirement plan
Dividend Stocks

3 Top Canadian Stocks to Buy for Monthly Passive Income

| Adam Othman

Even though quarterly dividend payouts are the norm, a monthly payout frequency can be more manageable for passive income earners.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, December 29

| Jitendra Parashar

Falling oil prices could take TSX energy stocks downward at the open today.

Read more »

energy industry
Energy Stocks

2 TSX Energy Stocks Still Offering Immense Value

| Vineet Kulkarni

Will TSX energy stocks rally next year?

Read more »

Oil pumps against sunset
Energy Stocks

Suncor Is up 30% in 2022: Is the Energy Stock Still a Buy?

| Aditya Raghunath

Suncor stock has delivered solid gains to shareholders in 2022. Will it continue to beat the TSX in 2023 and…

Read more »

oil and natural gas
Energy Stocks

The 1 Canadian Energy Stock I’d Buy, Even if Oil Prices Stay Low

| Andrew Button

Suncor Energy Inc (TSX:SU) has fallen a lot since July. Is it still a buy?

Read more »

Gas pipelines
Energy Stocks

TC Energy Stock Is Down 18%: Here’s Why it’s a Buy on the Dip

| Puja Tayal

TC Energy (TSX:TRP) stock fell 18% in a month after the Keystone oil spill. Is this Dividend Aristocrat a buy…

Read more »

oil and gas pipeline
Energy Stocks

Suncor Is up 25% in 2022: Is the Energy Stock Still a Buy?

| Ambrose O'Callaghan

Suncor Energy Inc. (TSX:SU) stock remains one of my favourite energy pick-ups as we approach the final days of 2022.

Read more »

Gas pipelines
Energy Stocks

Energy Investors: Should You Buy Oil and Gas Stocks in 2023?

| Vineet Kulkarni

Canadian oil and gas stocks have outperformed again. But can they continue the momentum in 2023?

Read more »

Oil pumps against sunset
Energy Stocks

2 Top Energy Stocks to Buy Right Now

| Chris MacDonald

Here's why Cenovus Energy (TSX:CVE) and Brookfield Renewables (TSX:BEP.UN) are two of the top energy stocks to buy right now.

Read more »

Electricity pylons against a sunset
Energy Stocks

TFSA Investors: 2 Canadian Utility Stocks to Buy and Hold Forever

| Adam Othman

These two Canadian utility stocks make for stellar long-term buy-and-hold investments on the TSX right now.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Wednesday, December 21

| Jitendra Parashar

Strengthening oil prices could take the TSX energy stocks higher at the open today.

Read more »

value for money
Energy Stocks

Why This Energy Giant Looks Like a Major Bargain 

| Daniel Da Costa

This energy giant is a top stock to buy now, as it's highly reliable, pays a significant dividend, and is…

Read more »

Businessperson's Hand Putting Coin In Piggybank
Energy Stocks

3 Real Ways to Make $500 in Monthly Passive Income

| Andrew Button

Dividend stocks like Enbridge can provide $500 per month in passive income. What's the catch?

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Vermilion Energy Stock Plummeted 40% From the Top – Is It a Buy Today?

| Vineet Kulkarni

After a tumble, how will Vermilion Energy shares fare in 2023?

Read more »

Oil pumps against sunset
Energy Stocks

3 Top TSX Energy Stocks to Buy Right Now

| Christopher Liew, CFA

Three TSX energy stocks that continue to beat the broader market in 2022 are excellent year-end buys.

Read more »

Money growing in soil , Business success concept.
Energy Stocks

Oilsands Producers: Up to 100% of Free Cash Flow Will Go to Investors

| Christopher Liew, CFA

Oilsands producers, including two founding members of the Pathways Alliance, will allocate up to 100% of their free cash flow…

Read more »

oil and natural gas
Energy Stocks

2 Energy Stocks to Watch if Oil Prices Slump

| Joey Frenette

Suncor Energy (TSX:SU) and another TSX energy stock could be wild movers if oil prices slump going into the new…

Read more »

Energy Stocks

Here’s the Next TSX Stock I’m Going to Buy

| Aditya Raghunath

Ballard Power is a TSX growth stock trading at a massive discount to consensus price target estimates. Let's see what…

Read more »

money cash dividends
Energy Stocks

Sitting on Cash? These 2 TSX Stocks Are Great Buys Today But Won’t Be Forever

| Chris MacDonald

Here's why Algonquin Power (TSX:AQN) and Suncor Energy (TSX:SU) are two top TSX stocks to consider buying right now.

Read more »

Clean energy
Energy Stocks

Down Big on Oil Stocks? Here’s Why You Might Not Want to Sell

| Andrew Button

Oil stocks have taken a breather but Suncor Energy remains cheap and has a high yield to boot.

Read more »

woman data analyze
Dividend Stocks

2 TSX Stocks to Buy Hand Over Fist and 1 I’d Avoid Like the Plague

| Vineet Kulkarni

It's time to add to your stock watchlist for 2023. Here are two top TSX stocks to watch for in…

Read more »

oil tank at night
Energy Stocks

2 No-Brainer Oil Stocks (With Dividends) to Buy Before 2023

| Jitendra Parashar

Here are two of the best oil stocks in Canada you can buy before 2023.

Read more »

tsx today
Energy Stocks

TSX Today: Why Stocks Could Sink Further on Friday, December 16

| Jitendra Parashar

Consistent declines in commodity prices due to growing economic concerns could take TSX stocks lower at the open today.

Read more »

Champagne poured into a row of flutes
Energy Stocks

3 Top TSX Value Stocks to Buy Ahead of 2023

| Vineet Kulkarni

These TSX value stocks could play well next year.

Read more »

pipe metal texture inside
Energy Stocks

The Best Energy Dividend Stock for a Decade of Passive Income

| Christopher Liew, CFA

Canadians can create decades-long passive income or build retirement wealth by investing in the TSX’s top energy dividend stock.

Read more »

green power renewable energy
Energy Stocks

Retiree Passive Income: Which of These 2 Energy Stocks is a Better Buy?

| Christopher Liew, CFA

Two energy stocks with long-life energy infrastructure assets are excellent sources of passive income in retirement.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Missed Out on Canadian Energy Stocks? My Best Dividend Stock to Buy and Hold

| Joey Frenette

BCE (TSX:BCE) stock won't make dividend investors rich in 2023, but it can help batten down the hatches ahead of…

Read more »

oil and gas pipeline
Energy Stocks

1 Leading Passive Income Stock I’m Buying Hand-Over-Fist Right Now 

| Puja Tayal

The TSX market saw a correction in December as Canadian energy stocks plunged. Now is the time to buy this…

Read more »

Oil pumps against sunset
Energy Stocks

Should You Buy Oil Stocks on the Dip?

| Andrew Walker

Oil stocks are off their 2022 highs. Is this a good time to buy?

Read more »

Electric car being charged
Energy Stocks

2 Up-and-Coming TSX Venture Stocks to Keep an Eye On

| Daniel Da Costa

The TSX Venture Exchange is one of the best places for investors to find high-potential small-cap stocks to add to…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, December 13

| Jitendra Parashar

The release of key U.S. inflation numbers is likely to give further direction to TSX stocks today.

Read more »

Oil pipes in an oil field
Energy Stocks

Better Buy: Enbridge vs. Pembina Pipeline Stock

| Rajiv Nanjapla

Performance is improving among midstream energy companies. Let’s look at whether Enbridge or Pembina Pipeline would be a better buy…

Read more »

Electric car being charged
Energy Stocks

2 Top Energy Stocks Getting into the EV Boom

| Christopher Liew, CFA

Two TSX energy stocks with a head start look to have a clear competitive advantage in the anticipated EV boom.

Read more »

Man data analyze
Energy Stocks

Is Now the Time to Buy Lithium Stocks?

| Stephanie Bedard-Chateauneuf, MBA

The lithium shortage could cause its price to skyrocket, making it a great time to buy lithium stocks like Sigma…

Read more »

Gas pipelines
Energy Stocks

2 TSX Energy Stocks I’d Buy Over GICs for Better Returns

| Joey Frenette

Suncor Energy (TSX:SU) and Enbridge (TSX:ENB) are dividend studs that could outdo GICs in a recession year.

Read more »

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

Worried About Inflation? 2 TSX Energy Stocks That Actually Benefit From it

| Chris MacDonald

Here's why Suncor (TSX:SU) and Cenovus Energy (TSX:CVE) are two top-tier stocks investors should buy to battle inflation.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

With Interest Rates Rising, This TSX Energy Stock Is a Smart Buy

| Vineet Kulkarni

TSX energy is risky, but it's an attractive bet for next year.

Read more »

Utility, wind power
Energy Stocks

3 Clean Energy Stocks With Passive Income for 2023

| Amy Legate-Wolfe

These three clean energy stocks may be down now, but not for long, offering substantial returns and passive income for…

Read more »