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

Energy Stocks

Looking for Income in Retirement? These Canadian Dividend Stocks Can Deliver

| Sneha Nahata

These Canadian companies have been growing their annual dividends for decades, making them a dependable income stock for retirees.

Read more »

Energy Stocks

Ready to Invest With $5,000? 2 Stocks for May 2023

| Aditya Raghunath

Here's why investing $5,000 in TSX stocks such as Brookfield Renewable Partners should help you deliver outsized gains over time.

Read more »

Energy Stocks

This 5.9% Percent Dividend Stock Pays Cash Every Month

| Aditya Raghunath

Discover a 5.9% dividend stock that pays cash monthly! Boost your passive income with a reliable and consistent cash flow…

Read more »

Energy Stocks

Green Future: Top 3 Canadian Renewable Energy Stocks to Watch

| Brian Paradza, CFA

Watch out for elevated volatility on Algonquin Power and Utilities and two other renewable energy stocks this earnings season.

Read more »

Energy Stocks

2 Canadian Stocks That Could Course-Correct in 2023

| Kay Ng

These large-cap energy stocks can make you big money by being multi-baggers, but it requires timing the market and maybe…

Read more »

Energy Stocks

Top TSX Growth Stocks That Could Outperform Their Peers

| Vineet Kulkarni

2 TSX growth stocks to consider before the bull market arrives.

Read more »

Energy Stocks

Will Suncor Energy Stock Surge Higher, Driven by its Q1 Earnings?

| Vineet Kulkarni

Suncor Energy stock has been the laggard due to its operational issues.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Wednesday, May 3

| Jitendra Parashar

The Fed’s interest rate decision, other important economic releases, and corporate results could increase the volatility in TSX stocks today.

Read more »

Energy Stocks

Canadian Utilities: Powering Your Portfolio With Steady Dividends

| Vineet Kulkarni

Should you buy Canadian Utilities stock now?

Read more »

Energy Stocks

Up 10% Last Month, Can CNQ Stock Keep Cruising?

| Rajiv Nanjapla

Given the favourable environment and attractive valuation, I expect the uptrend in CNQ’s stock price to continue.

Read more »

A plant grows from coins.
Energy Stocks

Buy 2,000 Shares of This Canadian Energy Stock for $180 Per Month in Passive Income

| Ambrose O'Callaghan

Freehold Royalties is a Canadian energy stock you can rely on to generate consistent passive income in 2023 and beyond.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, May 2

| Jitendra Parashar

TSX investors will continue to closely monitor more corporate earnings reports today.

Read more »

Energy Stocks

3 Undervalued TSX Stocks to Buy in May 2023

| Rajiv Nanjapla

Given their healthy growth prospects and attractive valuation, I am bullish on the following three undervalued TSX stocks.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, May 1

| Jitendra Parashar

Corporate results and the Fed’s upcoming interest rate decision could keep TSX stocks volatile this week.

Read more »

Energy Stocks

Is Suncor Stock Undervalued?

| Andrew Walker

Investors with a contrarian strategy are wondering if Suncor is good to buy for a portfolio focused on dividends and…

Read more »

Energy Stocks

Is Cenovus Stock a Buy After Earnings?

| Karen Thomas, MSc, CFA

Despite being hit by lower oil and gas prices, Cenovus reported strong Q1 cash flows and increased its dividend by…

Read more »

Energy Stocks

Is Whitecap Resources Stock a Buy After Its Promising Q1 Earnings?

| Vineet Kulkarni

Whitecap Resources reported stellar Q1 results and could send the stock higher.

Read more »

data analyze research
Energy Stocks

What to Watch When CNQ Reports its Q1 Earnings Next Week

| Vineet Kulkarni

CNQ stock has returned 8% in the last 12 months and 370% in the last three years.

Read more »

Energy Stocks

Top TSX Value Stocks Everyone Else Is Ignoring (But You Shouldn’t)

| Vineet Kulkarni

Here are three super-discounted stocks that offer handsome growth potential.

Read more »

energy oil gas
Energy Stocks

Is AltaGas Stock a Buy After Earnings?

| Karen Thomas, MSc, CFA

While AltaGas continues to post strong earnings results, its problematic debt-load has been decreasing, and its dividend has been increasing.

Read more »

Energy Stocks

2 TSX Stocks to Buy If You’re Striving for $1 Million

| Puja Tayal

If you are looking to earn $1 million from investments, invest a portion of your portfolio in high-growth stocks with…

Read more »

Energy Stocks

Better Buy for Passive Income: Enbridge Stock or CNQ Stock?

| Andrew Walker

Enbridge and Canadian Natural Resources have great track records of dividend growth.

Read more »

Energy Stocks

Top-Yielding TSX Energy Stocks to Buy in April 2023

| Vineet Kulkarni

Despite being one of the most volatile sectors, TSX energy will likely continue to delight investors.

Read more »

oil and natural gas
Energy Stocks

8-Year High: Can MEG Energy Stock Keep the Momentum Going?

| Vineet Kulkarni

MEG Energy stock has gained 25% in the last 12 months and 1,400% in the last three years.

Read more »

Energy Stocks

3 High-Yield Energy Stocks You Can Hold for Years

| Aditya Raghunath

Invest in 3 top-performing energy stocks with high yields, offering long-term growth and stability for a diversified portfolio.

Read more »

Energy Stocks

Better Buy: Suncor Stock or Canadian Natural Resources Stock?

| Andrew Walker

Suncor and Canadian Natural Resources are benefitting from higher oil prices. Is one undervalued today?

Read more »

Energy Stocks

Is Cenovus Energy Stock a Buy Before Its Q1 Earnings?

| Vineet Kulkarni

Cenovus Energy stock has returned 7% in the last 12 months, outperforming its peers.

Read more »

Energy Stocks

How to Avoid TFSA Taxes With Buy-and-Hold Investing

| Andrew Button

You're less likely to be taxed buying and holding stocks like Enbridge in your TFSA than swing trading them.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

This 7 Percent Dividend Stock Pays Cash Every Month

| Demetris Afxentiou

Monthly dividend stocks are in high demand. Here’s a juicy 7% dividend stock that pays cash every month to buy…

Read more »

Energy Stocks

2 Cheap Energy Stocks to Buy Now and Never Sell

| Karen Thomas, MSc, CFA

Suncor Energy stock is one of the Canadian energy stocks to buy now, while they're cheap and offer generous dividend…

Read more »

bulb idea thinking
Energy Stocks

Better Buy: Emera or Fortis Stock?

| Andrew Walker

Fortis and Emera are solid dividend stocks with reliable cash flows. Is one undervalued today?

Read more »

Energy Stocks

3 Green Energy Stocks to Buy Before Earth Day

| Amy Legate-Wolfe

These three green energy stocks have a solid history of growth behind and ahead of them, making them the perfect…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Friday, April 21

| Jitendra Parashar

The TSX index could remain volatile today, as traders readjust their holdings ahead of a heavy week for corporate earnings…

Read more »

Energy Stocks

Tourmaline Stock: Down 28% and on Sale Today

| Karen Thomas, MSc, CFA

The volatility continues for Tourmaline stock, but the natural gas market remains strong in the face of global demand.

Read more »

Energy Stocks

Better Buy: TC Energy Stock or Enbridge Stock?

| Andrew Walker

TC Energy and Enbridge pay attractive dividends. Is one of these top pipeline stocks oversold today?

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

This TSX Renewable Energy Stock Could Double Your Money in 12 Months

| Aditya Raghunath

Uncover a high-potential TSX renewable energy stock that could help Canadian investors potentially double their money within a year.

Read more »

Energy Stocks

Why Enbridge Stock Is Still the Best Energy Stock to Buy

| Karen Thomas, MSc, CFA

Enbridge has a long history of generating shareholder value with minimal volatility and plenty of dividend income.

Read more »

Energy Stocks

4 Renewable Energy Stocks That Could Put You in the Green

| Christopher Liew, CFA

Investors can build a green portfolio in 2023 through four renewable energy stocks and make more money in the near…

Read more »

Dividend Stocks

3 Hidden Stocks That Could Make You a Fortune

| Christopher Liew, CFA

Three obscure or hidden stocks are potential fortune-makers in 2023 and beyond if investors give them a hard look.

Read more »

Energy Stocks

What’s Next for Baytex Energy Stock After its Ranger Oil Merger?

| Vineet Kulkarni

Baytex Energy expands its scale in the Eagle Ford basin in the U.S., but some questions remain.

Read more »