In this article, we discuss the 11 Best Coal Stocks to Buy According to Hedge Funds.
The most recent forecast from the Energy Information Administration (EIA) predicts that the demand for power in the United States will surpass previous records in 2025 and 2026. Power consumption is expected to increase to 4,187 billion kWh in 2025 and 4,305 billion kWh in 2026, both exceeding the record-breaking 4,097 billion kWh in 2024. Rising residential and business usage, along with the enormous energy requirements of data centers powered by AI and cryptocurrency activities, are the main drivers of this surge.
Coal is expected to remain stable, edging up from 16% in 2024 to 17% in 2025 before easing back again in 2026. Renewables, meanwhile, are steadily increasing their share of the grid—from 23% in 2024 to 26% in 2026. By contrast, natural gas is expected to decline slightly from 42% in 2024 to 40% in subsequent years.
This dynamic highlights how coal continues to serve as a reliable source of electricity in the United States, despite the ongoing shift to cleaner alternatives. The rising demand presents opportunities for investors in certain coal producers that stand to benefit from long-term contracts, stable pricing, and a sustained reliance on coal-fired electricity during demand peaks.
In light of this, the best coal stocks to buy can offer a balanced mix of conservative positioning and income potential as global energy consumption continues to rise. With this backdrop, let’s move on to our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
Methodology
To curate our list of the 11 Best Coal Stocks to Buy According to Hedge Funds, we used the Finviz screener to extract a list of coal stocks. Next, we assessed hedge fund sentiment surrounding each stock using Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds. We present our list of the 11 Best Coal Stocks to Buy According to Hedge Funds in ascending order based on the number of hedge funds holding stakes in each stock as of Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. NACCO Industries, Inc. (NYSE:NC)
Number of Hedge Fund Holders: 5
NACCO Industries, Inc. (NYSE:NC) is included in our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
NACCO Industries, Inc. (NYSE:NC) announced on September 11, 2025, that shareholders of record as of September 2 will receive a quarterly dividend of $0.2525 per share on September 15. With six consecutive years of dividend increases and 55 years of uninterrupted payments, the company’s longstanding dedication to shareholder returns is demonstrated by the payout, which represents a 2.81% yield. NACCO’s reputation for reliable performance has been strengthened by its 11% dividend growth rate over the past 12 months.
NACCO Industries, Inc. (NYSE:NC) is involved in coal mining, contract mining services for minerals and aggregates, and coal, oil, and gas royalty leasing. It is one of the Best Coal Stocks.
10. Alliance Resource Partners, L.P. (NASDAQ:ARLP)
Number of Hedge Fund Holders: 8
With significant hedge fund interest, Alliance Resource Partners, L.P. (NASDAQ:ARLP) secures a spot on our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
Alliance Resource Partners, L.P. (NASDAQ:ARLP) hit a 52-week low, closing at $22.21 on September 11, 2025. The stock’s dedication to shareholders is demonstrated by its strong 10.56% dividend yield and 27 years of consistent payouts, even during the industry downturn. Shares look cheap with a P/E ratio of 12.49, but the energy industry’s problems and the state of the market as a whole are major factors. Investors are now keeping a close eye on Alliance to see if it can rebound from this setback.
In addition to producing coal, managing royalties, and leasing oil and gas assets, Alliance Resource Partners, L.P. (NASDAQ:ARLP) is a diversified natural resources company that provides mining technology solutions across the United States. It is one of the Best Coal Stocks.
