Motley Fool Premium
  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: 

  • Liquefied natural gas companies
  • Natural gas companies 
  • Oil companies 

(Renewable energy stocks are part of the TSX’s utilities sector.)

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 Canadian energy 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/]

In addition, you should read up on our Renewable Energy Stocks list.

Check back here for the most up to date information about energy stocks.

Top Articles

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, MSc, CETF®

Here's why shares of AQN fell hard last year.

Read more »

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 »

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 »

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 »

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

Utility, wind power
Energy Stocks

Renewable Energy in Canada: Hype or Historic Opportunity?

| Andrew Button

Brookfield Renewable Partners (TSX:BEP.UN) is doing big things in renewable energy. But is it just hype?

Read more »

a person watches stock market trades
Energy Stocks

What’s Ahead for Canadian Natural Resources Stock in 2026?

| Rajiv Nanjapla

Given its strong operating performance and favourable growth outlook, I expect Canadian Natural Resources to maintain its upward momentum and…

Read more »

Oil industry worker works in oilfield
Energy Stocks

Top Energy Stocks to Invest in for 2026

| Jitendra Parashar

With oil demand holding firm and cash flows rising, these two Canadian energy stocks could shine in 2026 and beyond.

Read more »

Investor wonders if it's safe to buy stocks now
Energy Stocks

Is Cenovus Energy a Buy?

| Brian Paradza, CFA

Cenovus Energy (TSX:CVE) stock just hit a 52-week high. But is its $8.6 billion MEG buy a stroke of genius…

Read more »

senior man smiles next to a light-filled window
Energy Stocks

If I Could Only Buy 2 Dividend Stocks in 2026, These Would Be My Picks

| Demetris Afxentiou

For investors building a dependable income portfolio in 2026, these two dividend stocks offer a compelling mix of yield, stability,…

Read more »

Colored pins on calendar showing a month
Energy Stocks

A Perfect TFSA Stock: A 6.5% Yield With Constant Paycheques

| Tony Dong, MSc, CETF®

I love this TSX oil & gas royalty as a high-yield passive income stock.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Better Pipeline Stock: Enbridge or TC Energy?

| Rajiv Nanjapla

Let’s evaluate Enbridge and TC Energy to determine which of the two pipeline companies is a better buy at current…

Read more »

worker holds seedling in soybean field
Energy Stocks

Oil Is Weak: 1 Canadian Dividend Stock I’d Buy Anyway

| Amy Legate-Wolfe

Oil looks shaky, but this TSX royalty payer can still reward you because it collects revenue without drilling or heavy…

Read more »

oil pump jack under night sky
Energy Stocks

Energy Stocks Are Shaky: Here’s My Top TSX Pick

| Amy Legate-Wolfe

Energy headlines are messy, but Baytex has a clear 2026 plan and cash flow strength that could hold up better…

Read more »

dividend stocks are a good way to earn passive income
Energy Stocks

How to Generate $500/Month Tax-Free Using a TFSA

| Christopher Liew, CFA

Generating $500 tax-free monthly income using the TFSA is doable, but investors must take into account time, yield, and risk…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Energy Stocks

Canadians: How Much Money Should Be in a TFSA to Retire?

| Adam Othman

Do you hold stock like Fortis (TSX:FTS) in your Tax-Free Savings Account (TFSA)? You might earn enough dividends to set…

Read more »

a man celebrates his good fortune with a disco ball and confetti
Energy Stocks

Where Will Enbridge Stock Be in 3 Years?

| Aditya Raghunath

Enbridge stock is a top TSX dividend stock that continues to offer significant upside potential to shareholders in 2026.

Read more »

canadian energy oil
Energy Stocks

Top Canadian Stocks to Buy With $7,000 in 2026

| Sneha Nahata

These top Canadian stocks have strong growth prospects, have beaten markets over the years, and could deliver significant returns over…

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

1 Canadian Energy Stock Poised for Big Growth in 2026

| Aditya Raghunath

ARC Resources just proved something important about its business model: it can deliver record production and free cash flow even…

Read more »

oil pump jack under night sky
Energy Stocks

1 Canadian Energy Stock Poised for Big Growth in 2026

| Aditya Raghunath

Imperial Oil is a blue-chip Canadian energy stock that also pays shareholders a growing dividend in 2026.

Read more »

woman checks off all the boxes
Energy Stocks

6 Tricks of TFSA Millionaires

| Aditya Raghunath

Here's how Canadians can use the TFSA to create long-term wealth over the next decade.

Read more »

leader pulls ahead of the pack during bike race
Energy Stocks

A 6% Yield Pipeline Stock That Could Have a Breakout Year

| Joey Frenette

Enbridge (TSX:ENB) stock is getting cheap amid its latest slide. The yield still looks as good as ever.

Read more »

The RRSP (Canadian Registered Retirement Savings Plan) is a smart way to save and invest for the future
Energy Stocks

1 Rock-Solid TSX Dividend Stock to Buy Before RRSP Season Ends

| Amy Legate-Wolfe

RRSP season makes yields look irresistible, but Canadian Utilities is really a “sleep-well” pick only if you’re happy with slow…

Read more »

Canadian dollars in a magnifying glass
Energy Stocks

If CAD/USD Swings, This TFSA Strategy Still Works

| Amy Legate-Wolfe

CAD/USD swings can make a TFSA feel volatile, so the best plan is a core in CAD assets plus a…

Read more »

Oil industry worker works in oilfield
Energy Stocks

Best Stock to Buy Right Now: Enbridge or TC Energy?

| Rajiv Nanjapla

Let’s examine Enbridge and TC Energy across key metrics to determine which is the better buy.

Read more »

A worker gives a business presentation.
Energy Stocks

Rates Are Stuck: 1 Canadian Dividend Stock I’d Buy Today

| Amy Legate-Wolfe

Side hustles are booming, but a steady dividend stock like Emera could be the quieter “second income” that doesn’t need…

Read more »

Natural gas
Energy Stocks

A Canadian Energy Stock Ready to Bring the Heat in 2026

| Karen Thomas, MSc, CFA

Peyto Exploration and Development is a natural gas producer delivering shareholder value in an increasingly bullish energy environment

Read more »

Oil industry worker works in oilfield
Energy Stocks

Where Will Canadian Natural Resources Be in 5 Years?

| Amy Legate-Wolfe

Energy stocks can humble investors fast, but CNQ’s long-life oil sands cash flow makes it one of the steadier ways…

Read more »

Oil industry worker works in oilfield
Energy Stocks

Energy Sector Strength: A Canadian Producer That Can Thrive in Any Market

| Amy Legate-Wolfe

Whitecap is built to survive oil-price swings by keeping costs low and focusing on durable free cash flow.

Read more »

Board Game, Chess, Chess Board, Chess Piece, Hand
Energy Stocks

Is Algonquin Power Stock a Trap?

| Amy Legate-Wolfe

Algonquin can look cheap and high-yield, but the real test is whether cash flow and balance-sheet repairs are truly sustainable.

Read more »

investor looks at volatility chart
Energy Stocks

This Canadian Energy Stock Offers Serious Value (and Yield) This January

| Joey Frenette

Canadian Natural Resources (TSX:CNQ) stock looks way too cheap for energy-focused value investors.

Read more »

stock chart
Energy Stocks

A Canadian Stock Poised for a Massive Comeback in 2026

| Adam Othman

After several years of downturns and attempts at a slow recovery, Suncor Energy (TSX:SU) is finally near its all-time highs…

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Outlook for Imperial Oil Stock in 2026

| Aditya Raghunath

Imperial Oil stock has returned more than 300% to shareholders in the past decade. Here's why it can gain 35%…

Read more »

nuclear power plant
Energy Stocks

This Canadian Stock Could Rule Them All in 2026

| Amy Legate-Wolfe

Cameco is riding the nuclear comeback with uranium leverage and a Westinghouse catalyst that could define 2026.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

7.2% Dividend Yield? Buy This Top-Notch Dividend Stock in Bulk

| Brian Paradza, CFA

At a 7.2% yield, South Bow (TSX:SOBO) stock's dividend is a fortress built on secure cash flow, disciplined debt targets,…

Read more »

Nuclear power station cooling tower
Energy Stocks

Outlook for Cameco Stock in 2026

| Brian Paradza, CFA

Is Cameco stock a buy for 2026 after surging 166%? Discover how AI energy demand and a hidden "zombie" asset…

Read more »

Income and growth financial chart
Energy Stocks

Hitting All-Time Highs: Is Energy Fuels Stock Still a Buy in 2026?

| Amy Legate-Wolfe

Energy Fuels is a volatile “theme stock” with real uranium assets and rare-earth optionality, but it’s still not consistently profitable.

Read more »

coins jump into piggy bank
Energy Stocks

2 Delectable Dividend Stocks to Buy Immediately

| Amy Legate-Wolfe

These two TSX dividend stocks are off recent highs, giving income investors a better entry without relying on a perfect…

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Energy Stocks

Hitting All-Time Highs: Is Energy Fuels Stock Still a Buy in 2026?

| Amy Legate-Wolfe

Energy Fuels is a volatile “theme stock” with real uranium assets and rare-earth optionality, but it’s still not consistently profitable.

Read more »

Concept of multiple streams of income
Energy Stocks

How to Pick the Best 5%+ Dividends in the Canadian Energy Sector

| Demetris Afxentiou

Income investors seeking 5%+ yields should consider the Canadian energy sector. Here’s how to find the best picks.

Read more »

nuclear power plant
Energy Stocks

This TSX Stock Has Already Soared 37% in 2026: Can it Keep Going?

| Amy Legate-Wolfe

Cameco has momentum, a sturdy balance sheet, and multiple nuclear tailwinds that could keep driving gains in 2026.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Better Pipeline Stock: Enbridge vs. TC Energy?

| Aditya Raghunath

Canada-based pipeline stocks such as Enbridge and TC Energy offer shareholders an attractive yield in January 2026.

Read more »

how to save money
Energy Stocks

1 Canadian Energy Stock Poised for Big Growth in 2026

| Brian Paradza, CFA

Oil producer Cardinal Energy (TSX:CJ) is pairing a generous dividend with a major production surge in 2026...

Read more »

canadian energy oil
Energy Stocks

1 Bright Canadian Stock Ready to Surge in 2026 and Beyond

| Adam Othman

Analyst upgrades might be making the case for investing in Suncor Energy stock, and here’s what you need to know…

Read more »

Dam of hydroelectric power plant in Canadian Rockies
Energy Stocks

1 Magnificent Canadian Stock Down 59% to Buy and Hold Forever

| Adam Othman

After the dividend reset and steep discount, this Canadian dividend stock might be a forever buy-and-hold investment for your self-directed…

Read more »