Best Energy Stocks In Canada For January 2024

Dividend Earner

Dividend Earner

Updated on

2 min read Affiliate Disclosure

Canada is renowned for the abundance of natural resources and the oil sector is definitely one of the primary sectors driving the Canadian economy. As such, there are many options for investors when it comes to energy stocks.

If you look at the TSX 60, 13 of the 60 stocks are energy stocks ( 21.67%) and the largest representation followed by financials and materials with 10 each. Over 50% of the index is concentrated in the 3 primary sectors driving the Canadian economy.

If you invest in Canada, it’s important you understand the energy sector and what the company’s business is. Some of the industries are dependent on others.  See the industry breakdown below followed by the top Canadian energy stocks.

  • Oil & Gas – Drilling
  • Oil & Gas – E&P
  • Oil & Gas – Integrated
  • Oil & Gas – Midstream
  • Oil & Gas – Services
  • Oil & Gas – Refining & Marketing

With that said, don’t forget we may have reached peak oil and the push for electric vehicles will change the landscape over time.

One of my primary data points when researching a stock includes the Chowder Rule now as it establishes the potential total return of the company in the short term for both the dividend and the stock appreciation. Find the right stock for your portfolio.

Best Energy Stocks

A word of caution that bigger isn’t necessarily better, but the larger Canadian oil stocks could provide stability.

While all of these stocks are oil stocks, know what you want to own. Some energy stocks are pure play drilling, some are just about transport and others have a full vertical integration to the pump.

Finding An Undervalued Oil Stocks

It’s not easy to find an undervalued stock in this space. One way I use is to assess the current yield against the 5-year average. The capital-intensive nature of the business, and the crude oil prices mostly have an impact on future income as opposed to the valuation.

Cash flow is king with these companies, and their ability to profit from crude oil at a certain price is key.

Note that not all dividend stock screeners are created equal. Not many screeners focus on dividend data and dividend strength. You should consider a screener such as Dividend Snapshot Screeners.


Canadian Natural Resources

tse:cnq | Energy | Oil & Gas E&P


Imperial Oil

tse:imo | Energy | Oil & Gas Integrated



tse:su | Energy | Oil & Gas Integrated


Whitecap Resources

tse:wcp | Energy | Oil & Gas E&P


Tourmaline Oil

tse:tou | Energy | Oil & Gas E&P