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

Woman has an idea
Energy Stocks

3 Cheap TSX Stocks to Buy With $100

| Sneha Nahata

Here are a few cheap TSX stocks to buy right now with $100.00!

Read more »

Payday ringed on a calendar
Dividend Stocks

Want Passive Income? These 3 TSX Stocks Pay Monthly

| Andrew Button

Monthly pay dividend stocks like Transalta Renewables (TSX:RNW) can generate truly passive income.

Read more »

Various Canadian dollars in gray pants pocket
Energy Stocks

Got $1,000? Lap Up These 4 Top Dividend Stocks Right Now

| Rajiv Nanjapla

Amid rising volatility, these four dividend stocks could strengthen your portfolio and pay dividends at a healthier yield.

Read more »

calculate and analyze stock
Tech Stocks

Why Canadian Stocks Are Falling in July 2021

| Jitendra Parashar

Let’s find out what could be causing the Canadian stocks to drop in July and whether the ongoing market losses…

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

TFSA Investors: Where to Invest $6,000 This Year

| Vineet Kulkarni

TFSA investors: The capital gain and dividend income created within the TFSA will be tax-free for investors even at withdrawal.

Read more »

Choose a path
Dividend Stocks

Suncor (TSX:SU) Stock: Up a Massive 27% in 2021

| Adam Othman

Suncor stock could be an excellent investment to consider as the energy sector continues its strong run in 2021 and…

Read more »

Woman has an idea
Energy Stocks

Building a Portfolio? Start With These 3 Top Canadian Stocks

| Nicholas Dobroruka

Here are three Canadian stocks that are perfect to build a portfolio around. Now is the time to be buying,…

Read more »

energy industry
Energy Stocks

Oil Prices Down 4%: Should You Buy Oil Stocks?

| Puja Tayal

Oil prices have dipped 4.4% in July for many reasons. Is this dip temporary or something that will have a…

Read more »

You Should Know This
Dividend Stocks

CRA CRB $800 Reduction: All You Need to Know

| Adam Othman

Invest in BCE stock to begin building a passive-income stream, as the CRA reduces the Canada Recovery Benefit by $800.

Read more »

Oil pumps against sunset
Dividend Stocks

2 TSX Energy Stocks That Went to the Moon in 2021

| Vineet Kulkarni

After years of underperformance, TSX energy stocks have brought delight to investors in 2021. Here are two that beat TSX…

Read more »

Golden crown on a red velvet background
Dividend Stocks

3 Canadian Dividend Aristocrats to Buy Right Now

| Sneha Nahata

These companies have solid businesses and resilient cash flows, indicating that they could continue to enhance shareholders’ value.

Read more »

Volatile market, stock volatility
Dividend Stocks

3 Canadian Stocks to Buy in July

| Karen Thomas, MSc, CFA

This Motley Fool Canada article discusses three Canadian stocks to buy: Enbridge, Fortis, and Canadian Natural Resources stock.

Read more »

analyze data
Energy Stocks

Top Canadian Stock to Buy in July 2021

| Nikhil Kumar

Suncor Energy Inc. (TSX:SU)(NYSE:SU) focuses on value-driven investments to enhance margins, improve business processes, and reduce the company's operating and…

Read more »

sad concerned deep in thought
Energy Stocks

3 Unstoppable Stocks to Buy With $1,000

| Christopher Liew, CFA

Growth stocks are growing in numbers as the TSX’s continues its advance. If you have $1,000 to spare, the Nuvei…

Read more »

Profit dial turned up to maximum
Dividend Stocks

TFSA Investors: 3 Dividend Stocks to Buy Today

| Adam Othman

Northwest Healthcare REIT, Enbridge stock, and Pembina Pipeline stock are stock picks for investors looking to generate dividend income in…

Read more »

edit Woman calculating figures next to a laptop
Dividend Stocks

2 Top Dividend Stocks for Your Portfolio

| Adam Othman

Fortis Inc. stock and Scotiabank stock are two top dividend stocks that you can add to your dividend income portfolio…

Read more »

Bank sign on traditional europe building facade
Dividend Stocks

CRA Warning: 3 Costly TFSA Mistakes to Avoid

| Adam Othman

The Canadian Imperial Bank of Commerce stock could be a vital foundation for a robust TFSA portfolio to help you…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Energy Stocks

2 Stocks With Tremendous Returns in 2021

| Christopher Liew, CFA

Obscure names are lording it over popular stocks in 2021. Pick those with tremendous returns, such as Nuvista Energy stock…

Read more »

Dice engraved with the words buy and sell
Energy Stocks

2 Top TSX EV Stocks to Buy Right Now

| Chris MacDonald

Both NFI Group (TSX:NFI) and Martinrea (TSX:MRE) aren't typically considered EV stocks, but could be moving in this direction in…

Read more »

value for money
Energy Stocks

Building a Great Portfolio? Start With This Cheap Stock

| Nikhil Kumar

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) appears committed to sustainable, growing returns to shareholders and reducing the company's environmental footprint through…

Read more »

potted green plant grows up in arrow shape
Energy Stocks

Got $1,000? 2 Top Energy Stocks to Buy and Hold for Decades

| Daniel Da Costa

These two energy stocks are not only priced attractively, but they are some of the top businesses to buy and…

Read more »

value for money
Dividend Stocks

3 Top Canadian Stocks to Buy This Month

| Adam Othman

Lightspeed POS stock, Royal Bank of Canada stock, and Northland Power stock are top Canadian stock picks for you to…

Read more »

tech and analysis
Dividend Stocks

3 Hard-Hit TSX Dividend Growth Stocks to Buy and Hold Forever

| Joey Frenette

Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) and two other TSX dividend growth stocks that Canadians would be smart to buy on the…

Read more »

A bull outlined against a field
Dividend Stocks

Why am I Bullish on Pipeline Stocks?

| Puja Tayal

Pipeline stocks have been making news, as oil prices soar to a three-year high. But there is a lot more…

Read more »

Gas pipelines
Dividend Stocks

How This TSX Energy Midstream Stock Became the Best Performer Among Peers

| Vineet Kulkarni

One TSX energy midstream stock has been on the sharp run this year. Inter Pipeline (TSX:IPL) has returned 80% so…

Read more »

Where to Invest?
Dividend Stocks

2 Top Energy Stocks Investors Should Buy Right Now

| Chris MacDonald

Two of the top energy stocks investors should consider right now are Altagas (TSX:ALA) and Cenovus Energy (TSX:CVE)(NYSE:CVE).

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Earn $250 Per Month Passive Income With This 6.3% Dividend Stock

| Christopher Liew, CFA

The Pembina Pipeline stock is preferred by many dividend investors. Besides the more than 6% yield, the periodic payout is…

Read more »

question marks written reminders tickets
Dividend Stocks

Enbridge Stock vs. TC Energy: Which TSX Dividend Heavyweight to Buy?

| Joey Frenette

Enbridge (TSX:ENB)(NYSE:ENB) and TC Energy (TSX:TRP)(NYSE:TRP) stocks are great dividend heavyweights for value-seeking TSX investors.

Read more »

House Key And Keychain On Wooden Table
Dividend Stocks

Why Housing Prices Keep Rising

| Adam Othman

Northwest Healthcare REIT could be a far better alternative to investment properties, as housing prices keep rising, despite all concerns.

Read more »

Glass piggy bank
Dividend Stocks

Retirees: Here’s 1 Awesome Trick to Boost Your CPP Pension

| Christopher Liew, CFA

Delaying the payments past 65 is the simplest way to boost your CPP pension. However, it would be best if…

Read more »

pipe metal texture inside
Dividend Stocks

Enbridge (TSX:ENB): A Top Discounted Energy Stock to Buy Right Now

| Adam Othman

Enbridge stock could be an ideal buy right now amid the energy sector boom, as the economy reopens and its…

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

3 Reliable Canadian Dividend Stocks I’d Buy With $300

| Sneha Nahata

These Canadian stocks could generate regular income, are relatively stable, and are likely to enhance your portfolio’s overall returns in…

Read more »

energy industry
Energy Stocks

Why Are Oil Stocks Lagging the Price of Oil?

| Vishesh Raisinghani

Oil stocks like Suncor Energy (TSX:SU)(NYSE:SU) have underperformed oil. This could be a contrarian opportunity.

Read more »

stocks rising
Dividend Stocks

Go Big or Go Home With These 3 Mega-Cap Stocks

| Chris MacDonald

These three top mega-cap stocks are among the best in Canada for investors seeking excellent long-term portfolio returns.

Read more »

Solar panels and windmills
Dividend Stocks

Bet on Clean Energy With This Top TSX Stock Right Now

| Chris MacDonald

In the clean energy sector, Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) doesn't get the love it deserves among investors right now.

Read more »

oil tank at night
Dividend Stocks

Why Inter Pipeline (TSX:IPL) Stock Surged 3.25% Today

| Puja Tayal

Inter Pipeline (TSX:IPL) stock surged 3.25% after Brookfield Infrastructure Partners upped its bid. How can you profit from this? 

Read more »

Oil pumps against sunset
Energy Stocks

3 Energy Stocks That Are Still Undervalued

| Ambrose O'Callaghan

Softer oil prices should not stop investors from targeting undervalued energy stocks like Suncor Energy Inc. (TSX:SU)(NYSE:SU) today.

Read more »

oil tank at night
Energy Stocks

2 of the Best TSX Energy Stocks to Buy in July 2021

| Robin Brown

Energy stocks have helped propel the TSX Index in 2021. Yet there are still some attractive value opportunities that can…

Read more »

You Should Know This
Dividend Stocks

The CRB Extension Is Here: The $300/Week CRB Starts From July 18

| Puja Tayal

The CRA has reduced the CRB amount from $500/week to $300/week. The new CRB will apply from the periods starting…

Read more »

edit Colleagues chat over ketchup chips
Dividend Stocks

2 Top TSX Dividend Stocks to Buy and Hold Forever

| Chris MacDonald

Among Canadian dividend stocks, Enbridge (TSX:ENB)(NYSE:ENB) and Fortis (TSX:FTS)(NYSE:FTS) are among the best choices today.

Read more »