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

oil and natural gas
Energy Stocks

This Small-Cap Energy Stock Has Risen 773% in 3 Years

| Christopher Liew, CFA

A small-cap energy stock is a profitable investment option given its prolific performance and superior returns in the last three…

Read more »

Oil pumps against sunset
Energy Stocks

All Is “Well”: 2 Energy Services Stocks With Market-Spanking Gains

| Christopher Liew, CFA

Two energy stocks in the oil & gas equipment & services industry are profitable options in 2022 owing to their…

Read more »

Utility, wind power
Energy Stocks

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

| Kay Ng

Renewable energy stocks could be a good area to shop for value. The sector also has long-term growth ahead.

Read more »

sale discount best price
Energy Stocks

Down 30% From the Top, These TSX Stocks Are Flat-Out Deals Right Now

| Vineet Kulkarni

Not all beaten-down TSX stocks are a buy right now. Here are some that offer value.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, November 24

| Jitendra Parashar

TSX stocks might remain choppy with an upward bias today, as the U.S. markets remain shut for Thanksgiving.

Read more »

Oil pumps against sunset
Energy Stocks

Suncor Energy Stock up 43%: Is it Time to Sell?

| Puja Tayal

Suncor Energy (TSX:SU) stock is up 43% and trading closer to its 52-week high. Is it time to sell or…

Read more »

money cash dividends
Energy Stocks

2 TSX Energy Stocks to Buy for Fast-Growing Passive Income

| Robin Brown

TSX energy stocks are gushing spare cash and shareholders are set to be rewarded. Here are two top stocks for…

Read more »

Oil pumps against sunset
Energy Stocks

You Can Still Ride the Wave of These 2 Red-Hot Momentum Stocks

| Christopher Liew, CFA

Two energy stocks with strong momentums in 2022 have delivered more than 60% year-to-date gains already.

Read more »

Gas pipelines
Energy Stocks

3 Leading Oil Stocks to Buy in 2022 and Beyond

| Ambrose O'Callaghan

Canadian Natural Resources Ltd. (TSX:CNQ) is one of three oil stocks I’m looking to snatch up at a discount for…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, November 21

| Jitendra Parashar

The commodity-heavy TSX index is likely to underperform its U.S. peers due mainly to the recent dip in oil and…

Read more »

oil tank at night
Energy Stocks

2 Top Energy Stocks to Buy Right Now

| Adam Othman

Here are two top Canadian energy stocks to buy at attractive prices and hold for the long run.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

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

| Vineet Kulkarni

TSX energy stocks have returned 1,000-2,000% since the pandemic.

Read more »

oil tank at night
Energy Stocks

3 Super-Cheap TSX Energy Stocks to Buy Right Now

| Vineet Kulkarni

Here are three top undervalued TSX energy stocks to play the next leg of the crude oil rally.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Friday, November 18

| Jitendra Parashar

Continued weakness in crude oil prices could take TSX energy stocks lower today.

Read more »

Businessman looking at a red arrow crashing through the floor
Energy Stocks

Algonquin Stock Loses 30% in 2 Days: Is the Market Overreacting?

| Puja Tayal

A 30% dip is not new in 2022, but it was the first time happening to a utility stock. Is…

Read more »

protect, safe, trust
Energy Stocks

This High-Yield Dividend Stock Could Be One to Hold Forever

| Brian Paradza, CFA

Emera Inc. (TSX:EMA) stock clocked 16 years of consistent dividend growth in 2022, and could reward investors with more passive…

Read more »

TFSA and coins
Energy Stocks

2 Energy Stocks to Hedge Your TFSA in 2023

| Joey Frenette

Canadian Natural Resources (TSX:CNQ) and Cenovus Energy (TSX:CVE) stock could be great hedges for oil-light TFSA investors.

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 »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, November 17

| Jitendra Parashar

TSX stocks might remain choppy in the near term, as investors look forward to more clues about the inflationary trends.

Read more »

TFSA and coins
Energy Stocks

Nearing Retirement? The 3 Best Energy Dividend Stocks to Buy Now

| Aditya Raghunath

Here's how dividend-paying energy stocks on the TSX such as Enbridge can help retirees create an alternate income stream.

Read more »

Pumps await a car for fueling at a gas and diesel station.
Energy Stocks

1 TSX Energy Stock (With a Monthly Dividend) to Buy Before 2022 Runs Out

| Aditya Raghunath

Pembina Pipeline is an energy stock on the TSX that pays investors a monthly growing dividend. Is PPL stock a…

Read more »

canadian energy oil
Energy Stocks

5 Things to Know About CVE Stock in November 2022

| Vineet Kulkarni

Cenovus is rewarding investors by creating more shareholder value this year. What's next for CVE stock?

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 stacked coins
Dividend Stocks

Dividend Seekers: Which of These 2 Energy Stocks is a Better Buy?

| Adam Othman

Trading at significant discounts from all-time highs, these 2 dividend stocks can be the perfect passive income assets for your…

Read more »

analyze data
Energy Stocks

Which Brookfield Utility Stock Is a Better Buy Today?

| Kay Ng

Both Brookfield utilities have beat the market in the long run. However, BIP has better price momentum. And BEP is…

Read more »

Oil pumps against sunset
Energy Stocks

What’s Next for Vermilion Energy Stock After Its Solid Q3 Earnings?

| Vineet Kulkarni

Despite last week's massive drop, VET stock is sitting on 80% gains for the year.

Read more »

Oil pumps against sunset
Energy Stocks

The Best Energy Dividend Stock for a Decade of Passive Income

| Karen Thomas, MSc, CFA

With its strong utilities business and its key position in the liquified petroleum gas export market, AltaGas is a top…

Read more »

oil and gas pipeline
Energy Stocks

3 TSX Stocks that Doubled This Year: Can You Still Buy?

| Vineet Kulkarni

Is there still steam left in TSX energy stocks?

Read more »

Arrowings ascending on a chalkboard
Energy Stocks

3 Oil Stocks to Buy for Sustainable Investing

| Christopher Liew, CFA

Three oil stocks with record profits in 2022 committed to advancing responsible oil sands development in Canada.

Read more »

data analyze research
Stocks for Beginners

Why I Own Enbridge Stock

| Demetris Afxentiou

Some investments are just too hard to ignore, and that’s why I own Enbridge stock and you should, too.

Read more »

edit Sale sign, value, discount
Energy Stocks

Why This Energy Giant Looks Like a Major Bargain

| Nicholas Dobroruka

After a disappointing earnings report, Algonquin Power is trading at a seriously opportunistic discount.

Read more »

Oil pipes in an oil field
Energy Stocks

Where Will Enbridge Be in 5 Years?

| Robin Brown

Enbridge is one of Canada's most dominant dividend stocks. What are its prospects for the coming five years?

Read more »

oil and gas pipeline
Energy Stocks

5 Things to Know About Enbridge Stock in November

| Andrew Walker

Enbridge looks attractive after the pullback. Here's why it might be a good time to buy ENB stock.

Read more »

Electric car being charged
Energy Stocks

2 Energy Stocks You Can Buy Right Now to Play the EV Boom

| Amy Legate-Wolfe

These energy stocks don't just give you access to the growth from renewable energy but also to the growth from…

Read more »

pipe metal texture inside
Energy Stocks

The Best Canadian Energy Stocks for Decades of Passive Income

| Andrew Button

Enbridge Inc (TSX:ENB)(NYSE:ENB) is one of the best energy stocks on the TSX for long-term passive income.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Nuvista Energy Stock Has Delivered a Gain of 21% Over 3 Months: Can You Still Buy?

| Karen Thomas, MSc, CFA

There's still time to buy Nuvista, as this stock is poised to continue to benefit from the rapidly improving natural…

Read more »

oil and natural gas
Energy Stocks

Should You Buy Liquefied Natural Gas Stocks Right now?

| Vishesh Raisinghani

Liquified natural gas stocks like Tourmaline Oil (TSX:TOU) are still attractive.

Read more »

A bull and bear face off.
Dividend Stocks

2 Stable TSX Stocks to Own in Unstable Markets

| Adam Othman

Add these two stable TSX stocks to your portfolio and hunker down for the bear market conditions this year.

Read more »

Wireless technology
Dividend Stocks

Is Maxar Stock a Buy Today While Its Down 35% Since April?

| Vineet Kulkarni

Demand for satellite Earth intelligence is rising. Does it make sense to buy Maxar stock after its recent correction?

Read more »

Man data analyze
Energy Stocks

This High-Yield Canadian Stock Is a No-Brainer

| Demetris Afxentiou

Are you looking for the ultimate dividend stock to buy? Here’s a high-yield Canadian stock that should be core to…

Read more »