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 Cheap Energy Stocks to Grab in 2022

| Andrew Button

If you're looking for cheap energy stocks to buy in 2022, Cenovus Energy (TSX:CVE)(NYSE:CVE) fits the bill.

Read more »

Energy Stocks

3 Top Renewable Energy Stocks Ready to Rebound in 2022

| Nicholas Dobroruka

With renewable energy stocks on the cusp of a rebound, investors would be wise to load up on these three…

Read more »

Energy Stocks

1 Up-and-Coming Stock You Can’t Ignore

| Adam Othman

Take a closer look at this new stock in a well-established market segment that could be an excellent investment for…

Read more »

Energy Stocks

Why Imperial Oil Stock Jumped 89% in 2021

| Jitendra Parashar

After staging a sharp financial recovery in 2021, it might be difficult for Imperial Oil (TSX:IMO)(NYSE:IMO) to maintain this strong…

Read more »

Energy Stocks

Why Cenovus Energy (TSX:CVE) Stock Surged 100% in 2021!

| Robin Brown

Cenovus Energy (TSX:CVE) soared 100% in 2021! If oil prices remain steady, this top energy stock could see another year…

Read more »

oil and gas pipeline
Energy Stocks

Why Suncor Energy (TSX:SU) Stock Jumped 50% in 2021

| Vineet Kulkarni

Though it's one of Canada's biggest energy stocks, Suncor Energy (TSX:SU) notably lagged peers in 2021.

Read more »

Dividend Stocks

2 Top Green Energy Stocks for 2022

| Adam Othman

Here are the two top green energy stocks for your portfolio, as another year of trading on the stock market…

Read more »

Energy Stocks

3 Super Energy Stocks Yielding up to 6.9%

| Ambrose O'Callaghan

Top energy stocks like Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) are still worth buying today.

Read more »

Energy Stocks

Will Enbridge’s Stock Price Soar in 2022?

| Jitendra Parashar

Enbridge could continue benefitting from improving demand for energy products in 2022.

Read more »

Energy Stocks

Enbridge (TSX:ENB) vs. Suncor (TSX:SU): Which Stock Should You Buy?

| Adam Othman

When comparing two different energy companies with completely different business models, you have to look beyond the commodity (and its…

Read more »

Energy Stocks

Your 2022 Stock Wish List: Renewable Energy

| Demetris Afxentiou

Have you created a 2022 stock wish list yet? Even if you already have one, you should consider these renewable…

Read more »

oil and gas pipeline
Energy Stocks

3 Energy Stocks That Could Get a Massive Boost Soon

| Adam Othman

Most energy stocks saw a decent boost in 2021, and the momentum might continue well into 2022. But few stocks…

Read more »

Dividend Stocks

2 Dividend Aristocrats Yielding Over 4.4% to Buy

| Christopher Liew, CFA

Two Dividend Aristocrats are the best buys today for their ever-growing dividend payouts.

Read more »

Energy Stocks

4 Top Canadian Stocks to Buy for 2022

| Rajiv Nanjapla

Given their healthy growth prospects and significant discount of their stock prices, these four Canadian stocks could outperform in 2022.

Read more »

Energy Stocks

2 High-Yield Dividend Stocks to Buy and Hold Forever

| Adam Othman

These two high-yield dividend stocks could be ideal buy-and-hold additions to your investment portfolio.

Read more »

Energy Stocks

3 Top Energy Stocks to Buy in 2022

| Kay Ng

Are you looking for top energy stocks to buy in 2022? You'll definitely want to check out this renewable energy…

Read more »

oil and gas pipeline
Energy Stocks

3 Oil Stocks to Buy in Canada Today

| Christopher Liew, CFA

Three oil stocks should deliver outsized gains in 2022, as crude prices continue to rebound.

Read more »

Energy Stocks

3 Energy Stocks That Are Ready to Roar

| Andrew Button

When oil prices recover again, energy stocks like Suncor Energy Inc (TSX:SU)(NYSE:SU) will rise in tandem.

Read more »

Energy Stocks

Must-Buys: 2 Energy Stocks Below $4 Have Returns of More Than 400%

| Christopher Liew, CFA

Two energy stocks under $4 are the top high-growth stocks with colossal return potential in 2022.

Read more »

oil and gas pipeline
Energy Stocks

This Is My Top Energy Stock Pick for 2022

| Kay Ng

Are you tired of trading in and out of energy stocks? Maybe it's time to consider or incorporate passive dividends…

Read more »

Energy Stocks

3 Stocks For Looming Energy Sector Normalization

| Adam Othman

An energy sector correction might already be here, and you should start identifying good growth/dividend prospects that you can buy…

Read more »

Energy Stocks

Got $1,000? Buy These 3 Cheap Canadian Stocks as the Market Looks to Rebound

| Rajiv Nanjapla

Given their healthy outlook and attractive valuation, I expect these three Canadian stocks to outperform over the next three years.

Read more »

Energy Stocks

Retiree Wealth: 2 Top Dividend Stocks to Buy Now for 2022 Passive Income

| Andrew Walker

These top dividend stocks look cheap right now for investors focused on passive income.

Read more »

Energy Stocks

2 Top Stocks That Should Outperform the TSX in 2022

| Robin Brown

Looking to outperform the TSX Index in 2022? Here are two inflation-beating stocks that should keep outperforming the market in…

Read more »

Energy Stocks

Retirees: 2 Safe Stocks to Buy for an Unstable Market

| Adam Othman

These two dividend stocks can provide you with a significant income stream through high dividend yields for your retirement portfolio.

Read more »

Energy Stocks

Why Energy Stocks Tumbled on Monday

| Amy Legate-Wolfe

Energy stocks in the oil and gas sector continued to drop on Dec. 20, as the Omicron variant spread across…

Read more »

Energy Stocks

2 TSX Stock Ideas for Last-Minute Holiday Shoppers

| Nicholas Dobroruka

Not finished your holiday shopping? These two TSX stocks are perfect gift ideas.

Read more »

Energy Stocks

Should You Buy Canadian Natural Resources (TSX:CNQ) Stock Today?

| Adam Othman

This Canadian energy stock has provided significant shareholder returns to investors over the last 12 months, and it could be…

Read more »

Energy Stocks

Is This the Best Time to Buy Oil Stocks?

| Vishesh Raisinghani

Oil stocks like Imperial Oil (TSX:IMO)(NYSE:IMO) deserve a spot on your watch list for 2022.

Read more »

Energy Stocks

Enbridge vs. Suncor: Which Energy Stock Is the Better Buy Before Christmas?

| Ambrose O'Callaghan

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) are two energy stocks worth considering during the holidays.

Read more »

Energy Stocks

Why Are Prices Rising? 2 TSX Stocks to Beat Inflation

| Puja Tayal

Canada is witnessing its highest rate of inflation in 18 years of 4.7%. How to protect your portfolio returns from…

Read more »

Energy Stocks

3 Top Energy Stock to Buy in Canada

| Christopher Liew, CFA

Three top energy stocks are buying opportunities even if the broader market is shaky due to renewed pandemic fears.

Read more »

Energy Stocks

I’d Buy Enbridge (TSX:ENB) Today For 3 Reasons + $1.1 Billion More

| Christopher Liew, CFA

A blue-chip stock is the perfect choice for income investors desiring high yields and a cleaner energy future.

Read more »

Energy Stocks

Paramount Resources Jumps 10% After Dividend Boost

| Amy Legate-Wolfe

Paramount Resources (TSX:POU) saw a flood of new investors wanting in on the company's dividend. Shares jumped 10% overnight.

Read more »

oil and gas pipeline
Energy Stocks

3 Top TSX Energy Stocks to Buy for 2022

| Vineet Kulkarni

Energy TSX stocks now seem to be readying for yet another banner year in 2022 after notably recovering from the…

Read more »

oil and gas pipeline
Energy Stocks

3 Undervalued Energy Stocks to Buy Before 2022

| Ambrose O'Callaghan

Canadians may want to snatch up discounted energy stocks like Suncor Energy Inc. (TSX:SU)(NYSE:SU) before the new year.

Read more »

Dividend Stocks

Canadian Investors: Earn Over $400/Month With These 3 Cheap Dividend Stocks

| Rajiv Nanjapla

Given their stable cash flows, excellent track record, and high dividend yield, these three dividend stocks could boost your passive…

Read more »

Dividend Stocks

3 Energy Stocks That Deserve A Spot In Your Dividend Portfolio

| Adam Othman

High-yield energy stocks that have proven their mettle time and time again and sustained their payouts deserve a place in…

Read more »

Energy Stocks

RRSP investors: Is Enbridge (TSX:ENB) Stock a Top Pick for 2022?

| Andrew Walker

Enbridge stock looks cheap right now and offers a 7% dividend yield.

Read more »

Dividend Stocks

How Suncor Energy (TSX:SU) Stock Is Placed ahead of 2022

| Vineet Kulkarni

Despite doubling dividends and a massive earnings recovery, Suncor Energy (TSX:SU) has notably underperformed in 2021.

Read more »