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: 

  • 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 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

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

Energy Stocks

3 of the Best Canadian Energy Stocks to Buy for All Types of Investors

| Daniel Da Costa

With the energy sector experiencing significant tailwinds, here are three of the best Canadian stocks to buy now and hold…

Read more »

Energy Stocks

3 Top Energy TSX Stocks That Offer High Monthly Passive Income

| Vineet Kulkarni

Despite the recent correction, TSX energy stocks continue to outperform.

Read more »

Energy Stocks

5 Canadian Energy Stocks That Earn Incredible Passive Income

| Robin Brown

Here are five Canadian energy stocks that pay incredible dividends and could earn you significant passive income this year and…

Read more »

Energy Stocks

2 Top TSX Energy Stocks to Buy as Crude Oil Soars

| Vineet Kulkarni

Be prepared for the next leg of the crude oil price rally.

Read more »

Dividend Stocks

3 Stocks For Over 5x Growth In The Next Two Decades

| Adam Othman

The TSX has many predictable and steady growth stocks that can help you grow your savings by as much as…

Read more »

A plant grows from coins.
Dividend Stocks

3 of the Top Growing Stocks on Earth

| Adam Othman

The Canadian market has several robust growth stocks comparable to top international assets that offer long-term or event-driven growth.

Read more »

Dividend Stocks

Canadians: 3 Easy Stocks to Invest in for Retirement

| Vineet Kulkarni

Asset allocation plays an important role when planning for retirement, and should be driven by your investment horizon and risk…

Read more »

Energy Stocks

Why Suncor Stock Could Be a Great Portfolio Hedge Right Now

| Chris MacDonald

Here's why Suncor (TSX:SU)(NYSE:SU) stock could be a great portfolio hedge providing excellent upside in this volatile market.

Read more »

oil and gas pipeline
Energy Stocks

Forget Suncor (TSX:SU): Here Are 3 Better Energy Stock Picks

| Adam Othman

Even though most energy stocks are on the bullish track right now, not all of them are worth buying, and…

Read more »

Energy Stocks

3 Canadian Stocks I’m Buying in This Volatile Market

| Puja Tayal

The Canadian stock market remains volatile as it braces for more interest rate hikes. This creates an opportunity to buy…

Read more »

Dividend Stocks

TFSA Passive Income: Use Dividend Stocks (With 0% Tax!)

| Christopher Liew, CFA

Active TFSA users can achieve inflation-fighting power and earn tax-free passive income by purchasing and holding two high yield royalty…

Read more »

Energy Stocks

Top TSX Oil Stock to Hedge Your TFSA in September

| Joey Frenette

Cenovus Energy (TSX:CVE)(NYSE:CVE) is a great long-term pick to buy and hold right now.

Read more »

grow money, wealth build
Dividend Stocks

Want Easy Passive Income? Go With These 2 Canadian Dividend Aristocrats

| Christopher Liew, CFA

Canadians can earn easy passive income from these two TSX dividend aristocrats to minimize the impact of rising inflation on…

Read more »

Energy Stocks

Could Enbridge (TSX:ENB) Accelerate Its Dividend Growth Rate?

| Puja Tayal

Enbridge (TSX:ENB)(NYSE:ENB) slowed its dividend growth during the pandemic. As the energy sector recovers, could Enbridge accelerate dividends?

Read more »

close-up photo of investor Warren Buffett
Stocks for Beginners

Warren Buffett Turns 92: Top Lessons Beginners Can Learn from the Legendary Billionaire Investor

| Jitendra Parashar

Here are some top tips from the man himself, Warren Buffett, to help beginners make wise investment decisions that pay…

Read more »

Energy Stocks

3 Oil Stocks I Like for September

| Andrew Button

Cenovus Energy (TSX:CVE)(NYSE:CVE) is just one of several oil stocks I'm enthusiastic about in 2022.

Read more »

oil and natural gas
Energy Stocks

Suncor Energy: A Screaming Bargain Hiding in Plain Sight

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) won't make you rich, but it's dirt cheap right now.

Read more »

Dividend Stocks

Build Your Retirement Portfolio: 2 RRSP Stocks to Buy in September

| Puja Tayal

Have you started planning for retirement? Even if retirement is a long way off, the time to start investing is…

Read more »

Energy Stocks

This Growth Stock Is up 1,200% in 10 Years: Its Growth Could Accelerate

| Vishesh Raisinghani

Growth stocks like TerraVest Industries (TSX:TVK) should be on your radar.

Read more »

Energy Stocks

Suncor (TSX:SU): Is it a Good Long-Term Growth Stock?

| Adam Othman

Higher oil prices have made energy companies attractive investments to consider, but Suncor (TSX:SU) might not be the best long-term…

Read more »

A plant grows from coins.
Dividend Stocks

2 Safe Dividend Paying Stocks to Buy on the TSX Today

| Christopher Liew, CFA

Canadian investors can counter market volatility and earn a steady stream of passive income by buying two safe dividend-paying stocks…

Read more »

Energy Stocks

Already Outperforming, Oil Stocks Could End the Year Strong

| Andrew Button

Oil stocks like Cenovus Energy (TSX:CVE)(NYSE:CVE) could get a big boost when the U.S. stops selling from its emergency oil…

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, August 30

| Jitendra Parashar

TSX investors may remain cautious ahead of the latest U.S. consumer confidence and job openings data today.

Read more »

Dividend Stocks

Hate Taxes? 3 TFSA Stocks That Can Earn You $11/Day

| Adam Othman

The TFSA provides a fantastic opportunity to grow your income without increasing your tax bill, making it an ideal option…

Read more »

Energy Stocks

Canadians: Why Freehold Royalties (TSX:FRU) Is the Ultimate Income Stock

| Ambrose O'Callaghan

Canadian investors who are starving for consistent income in this choppy market should snatch up Freehold Royalties Ltd. (TSX:FRU) today.

Read more »

canadian energy oil
Energy Stocks

Is Now the Time to Sell These 3 TSX Energy Stocks?

| Christopher Liew, CFA

Despite the volatility in oil markets due to falling crude prices, investors should still hold, not sell, these three outperforming…

Read more »

Energy Stocks

Up 62%, ARC Resources Stock Is Still a Screaming Buy for the Long Term

| Jitendra Parashar

These key reasons make ARX stock one of the best dividend stocks to buy for the long term on the…

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Why Cenovus Energy (TSX:CVE) Rose 8% Last Week

| Andrew Button

Cenovus Energy (TSX:CVE)(NYSE:CVE) made large gains last week. Here's why.

Read more »

Energy Stocks

Got $5,000? 1 TSX Energy Stock to Turn it Into $10,000

| Christopher Liew, CFA

One TSX energy stock could more than double a $5,000 investment because of robust free cash flows and soaring profits…

Read more »

Stocks for Beginners

3 High-Yield Energy Stocks to Buy Now

| Demetris Afxentiou

The market is full of long-term dividend stocks to power up your portfolio. Here’s three high-yield energy stocks to buy…

Read more »

Dividend Stocks

Suncor Stock (TSX:SU): A Value Stock Worth Buying or a Value Trap?

| Karen Thomas, MSc, CFA

Suncor Energy stock is poised for a rebound as the company makes important changes to address weak operational performance.

Read more »

Dividend Stocks

Got $250? Here Are 3 Smart Stocks to Buy Now

| Adam Othman

If you have $250 to spare, consider investing in these three TSX stocks and stay invested long-term to capitalize on…

Read more »

Dividend Stocks

Monthly Passive Income: Earn $560/Month With These 2 Stocks

| Adam Othman

Consider adding these two dividend stocks to your TFSA to generate substantial monthly, tax-free passive income.

Read more »

Energy Stocks

TSX Energy Stocks Still Gushing With Cash

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU), and Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) are discounted energy stocks worth checking out.

Read more »

Energy Stocks

TFSA Investors: 2 Top TSX Stocks to Buy Now for a $6,000 TFSA

| Nicholas Dobroruka

Lots of TSX stocks have been rallying as of late. Here are two top picks that are perfect for long-term…

Read more »

Engineers walk through a facility.
Energy Stocks

Forget Oil: This Commodity Is a Strong Long-Term Bet

| Adam Othman

Oil stocks might be popular, but fertilizer stocks like Nutrien (TSX:NTR)(NYSE:NTR) might be stronger long-term investments to consider.

Read more »

A worker wears a hard hat outside a mining operation.
Energy Stocks

Suncor Stock: Don’t be Fooled, This Isn’t a Growth Stock

| Amy Legate-Wolfe

Suncor stock (TSX:SU)(NYSE:SU) has doubled in the last year alone, which should make it a growth stock. But long-term holders…

Read more »

Energy Stocks

Warning to Investors: Get Out of These Formerly Safe Stocks Now!

| Amy Legate-Wolfe

This industry used to have some of the best safe stocks you could buy, but clean energy stocks are today’s…

Read more »

Energy Stocks

This Undervalued Energy Stock Offers a 9% Earnings Yield

| Vishesh Raisinghani

Energy stocks like Tourmaline Oil (TSX:TOU) should be on your radar.

Read more »

Energy Stocks

Energy Rebound: Top 2 Undervalued Oil Stocks to Buy

| Vishesh Raisinghani

Oil stocks like Suncor (TSX:SU)(NYSE:SU) could stage a comeback, as energy prices improve.

Read more »