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

Top TSX Stocks that Could Protect from Rising Inflation

| Vineet Kulkarni

After a couple of mutating virus variants, a more severe threat that could weigh on TSX stocks is inflation.

Read more »

Energy Stocks

2 Top Undervalued TSX Dividend Stocks to Buy Now for Passive Income

| Andrew Walker

These two top Canadian stocks look oversold right now and pay great dividends.

Read more »

Energy Stocks

2 Growth Stocks With 10X Potential

| Christopher Liew, CFA

Investors shouldn’t miss buying two growth stocks this month, as they could be worth 10 times more in the near…

Read more »

oil and gas pipeline
Energy Stocks

3 Top Energy TSX Stocks That Rose up to 250% This Year

| Vineet Kulkarni

TSX energy stocks have risen 75% in the last 12 months, against 20% growth of the Canadian markets. Here are…

Read more »

Energy Stocks

2 Renewable Energy Stocks to Own Today

| Adam Othman

Investing in the renewable energy industry offers significant long-term upside for investors, and here are two assets you could consider…

Read more »

Energy Stocks

Dividend Investors: Should You Buy Suncor (TSX:SU) Stock Now?

| Andrew Walker

Suncor recently raised its dividend by 100%, and more gains could be on the way.

Read more »

Energy Stocks

2 TSX Energy Stocks to Crush the Oil Price Recovery

| Andrew Button

If you're looking to play the recovery in oil prices, Cenovus Energy (TSX:CVE)(NYSE:CVE) is very much worth looking into.

Read more »

Energy Stocks

Why Tourmaline Oil (TSX:TOU) Stock Is a Top Natural Gas Play for 2022

| Vineet Kulkarni

Canada’s top natural gas stock Tourmaline Oil (TSX:TOU) has delighted shareholders this year, and the joy could continue next year!

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Wednesday, December 8

| Jitendra Parashar

Rising gold and copper prices could help metals mining stocks on the TSX rally today.

Read more »

oil and gas pipeline
Energy Stocks

FIRE SALE: Why I’m Buying the Dip in Energy Stocks Today

| Ambrose O'Callaghan

Oil and gas prices have been hit hard, and I’m looking to buy the dip in energy stocks like Suncor…

Read more »

Energy Stocks

2 TSX Energy Stocks to Buy on Weakness

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) and another TSX energy stock look like incredible values after dipping on broader market woes.

Read more »

Energy Stocks

Forget Rivian: Buy These 2 Renewable Energy Stocks Instead

| Jed Lloren

Rivian is one of the more popular names in the stock market today. However, I think these two clean energy…

Read more »

Energy Stocks

Will TSX Energy Stocks Continue to Outperform Next Year?

| Vineet Kulkarni

Canadian energy stocks have returned 80% in the last 12 months, outperforming the TSX Index and U.S. energy sector.

Read more »

Energy Stocks

The 2 Best Cheap Canadian Stocks to Buy in December

| Nicholas Dobroruka

These two discounted Canadian stocks are at the top of my watch list this month. Here’s why they should be…

Read more »

calculate and analyze stock
Dividend Stocks

2 Excessively Punished Stocks That Are Undervalued Now

| Adam Othman

These two beaten-down stocks could be bargain opportunities for value-seeking investors at current levels.

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, December 7

| Jitendra Parashar

TSX stocks could open on a positive note today due to overnight rally oil prices and a recovery in precious…

Read more »

Energy Stocks

Suncor (TSX:SU) Stock: Simply Too Cheap to Ignore?

| Andrew Walker

Suncor stock looks undervalued today if you think the economic recovery will expand in 2022.

Read more »

oil and gas pipeline
Energy Stocks

Canadian Natural Resources (TSX:CNQ): 4 Reasons to Buy the Top Energy Stock

| Vineet Kulkarni

CNQ stock has returned 65% in the last 12 months, notably outperforming peers.

Read more »

Energy Stocks

Why Crescent Point Energy (TSX:CPG) Stock Popped 8% Today

| Jitendra Parashar

Crescent Point Energy (TSX:CPG)(NYSE:CPG) announced a 50% increase in its quarterly dividends today, which fueled a rally in its stock…

Read more »

Make a choice, path to success, sign
Dividend Stocks

2 Stocks Under $5 to Buy in Canada Today

| Christopher Liew, CFA

Canadians with investment appetites but who don't want to spend too much can purchase two stocks under $5 that pay…

Read more »

Energy Stocks

Suncor Stock Slumps 11% in November: Will it Surge in December?

| Aditya Raghunath

Suncor stock just doubled its dividend payout, making it an attractive bet for income-seeking investors.

Read more »

Energy Stocks

Enbridge (TSX:ENB) Stock Price: Buy the Dip?

| Amy Legate-Wolfe

Enbridge (TSX:ENB)(NYSE:ENB) stock dropped during this stock market correction, but it could be a great chance to pick up this…

Read more »

Dividend Stocks

2 TSX Stocks to Fight Rising Inflation Rates

| Adam Othman

Investors worried about rising inflation rates might want to reposition their portfolios to keep pace with higher living costs in…

Read more »

Energy Stocks

Should You Buy Enbridge (TSX:ENB) Stock Before 2022?

| Adam Othman

This energy stock on the TSX has been on an upward trend throughout the year, and it might be worth…

Read more »

oil and gas pipeline
Energy Stocks

Accelerating Cash Flows: 2 Energy Stocks Raise Dividends

| Christopher Liew, CFA

Two energy stocks with accelerating cash flows are attractive investment projects due to outperformance and dividend increases.

Read more »

Dividend Stocks

3 Dividend Beasts With a Whopping 6.88% Yield

| Christopher Liew, CFA

End your worries about inflation and protect yourself by using your free cash to invest in three dividend beasts.

Read more »

stock research, analyze data
Energy Stocks

4 TSX Stocks With Jaw-Dropping Returns in 2021

| Christopher Liew, CFA

Two energy stocks and a pair of crypto stocks have delivered enormous returns in 2021, beating the year-to-date gains of…

Read more »

Energy Stocks

2 Buy-the-Dip Energy Stocks to Buy

| Stephanie Bedard-Chateauneuf, MBA

Suncor Energy (TSX:SU)(NYSE:SU) and Cenovus Energy (TSX:CVE)(NYSE:CVE) are two buy-the-dip energy stocks to buy now for big gains.

Read more »

Dividend Stocks

New Trend in 2022: Pandemic-induced Sustainable Investing

| Christopher Liew, CFA

Next year could see more Canadians adopting the responsible investing strategy.

Read more »

Dividend Stocks

Bear Market Alert! 2 Sectors to Keep an Eye On

| Adam Othman

Anticipating a bear market and tracking your favourite stocks in the sectors that are about to come down can help…

Read more »

Energy Stocks

After the Recent Pullback: These 3 Canadian Stocks Look Attractive

| Rajiv Nanjapla

The correction offers excellent buying opportunities in these three Canadian stocks.

Read more »

Dividend Stocks

Should You Buy Enbridge (TSX:ENB) Stock After its Recent Drop?

| Vineet Kulkarni

Enbridge (TSX:ENB)(NYSE:ENB) has fallen 12% in the last two weeks. This presents an opportunity for long-term investors to grab this…

Read more »

Technology
Dividend Stocks

2 Stocks That Could Set You up for Life

| Adam Othman

These two TSX growth stocks could be excellent investments if you have a long investment horizon.

Read more »

Energy Stocks

Forget Suncor: Here Are 2 Better Energy Stocks

| Daniel Da Costa

Although Suncor is one of the top energy stocks in Canada, these two companies offer far more potential for long-term…

Read more »

oil and gas pipeline
Energy Stocks

Suncor (TSX:SU) Stock: Should You Buy the Dip?

| Robin Brown

Last week, energy stocks like Suncor Energy (TSX:SU)(NYSE:SU) drastically sold off on concerns around the COVID-19 Omicron variant. West Texas…

Read more »

Energy Stocks

2 Buy-Now-and-Hold-Forever Stocks in Canada

| Adam Othman

These two energy stocks could be excellent purchases for buy-and-hold Canadian investors investing in the energy industry’s future.

Read more »

Energy Stocks

Renewable Energy Investments to Line Your Portfolio With

| Demetris Afxentiou

Investing in renewable energy investments has plenty of long-term upside. Here are two great options to consider buying today.

Read more »

Energy Stocks

Why Vermilion (TSX:VET) Stock Jumped 9% on Monday

| Amy Legate-Wolfe

Shares of Vermilion (TSX:VET)(NYSE:VET) stock jumped 9% after the company announced a major strategic acquisition.

Read more »

Energy Stocks

Enbridge Stock: Going to $60?

| Daniel Da Costa

Does the Canadian energy giant still offer investors growth potential, or are there better energy stocks for investors to consider…

Read more »

oil and gas pipeline
Energy Stocks

Market Correction: 2 Top TSX Dividend Stocks to Buy Now

| Andrew Walker

These two high-yield stocks look oversold right now.

Read more »