In this article, we will be looking at the 11 best energy dividend stocks to invest in.
The policy environment in the U.S. is shifting constantly, and the dividend-paying energy stocks are gaining fresher significance. On August 22, 2025, a report on CNN indicated an increase in the probability of a rate cut from the Federal Reserve, which could intensify the search for dependable yield. At Jackson Hole, Jerome Powell made the following statement:
“downside risks to employment are rising”
Along with this statement, the Fed Chair hinted that the central bank could soon lower rates to support the economy. The renewed uncertainty stands in favour of the dividend-seeking income-focused investors, particularly in energy, which stands as an attractive hedge.
Adding another layer to this investment story is the political climate. The Trump administration continues to pressure the Fed and reshape its leadership, leading to questions concerning long-term monetary stability. In such an environment, assets that offer consistent payout gains the most attention, as they protect the investors from a speculative future. Energy dividend stocks fit into this category with an income potential that matches the exposure to a sector that plays a critical role in global markets.
So stay with us as we unveil the 11 best energy dividend stocks that could add stability to your portfolio. The top 5 might make it into your investment collection.
Our Methodology
When putting together our list of 11 best energy dividend stocks to invest in, we followed a few criteria. Primarily, we sorted only those stocks with a dividend yield of 3.50% or more in the energy sector. It is to ensure a sizeable income for the investors. Additionally, we also filtered our list with an EPS growth rate of 5% or more in the past 3 years, to secure those stocks with strong, stable earnings. We have ranked the entries in our list based on the dividend yield. All the data used in the article was taken from financial databases and analyst reports, with all information updated as of August 26, 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. The Williams Companies, Inc. (NYSE:WMB)
Dividend Yield: 3.50%
The Williams Companies, Inc. (NYSE:WMB) holds a rank in our list of 11 best energy dividend stocks to invest in. The company sustains a Buy rating despite the Q2 earnings results missing their expectations.
Based in Oklahoma, The Williams Companies, Inc. (NYSE:WMB) is a leading North American energy infrastructure company. The company’s focus is on the transportation, processing, and storage of natural gas and natural gas liquids (NGLs). Founded in 1908, the company concentrates its operations on key producing basins and major market hubs throughout the U.S.
On August 4, 2025, the company reported its Q2 earnings results. The quarterly earnings of the company stood at $0.46 per share, missing the analyst estimates of $0.49 per share. The Williams Companies, Inc. (NYSE:WMB) also reported achieving revenue amounting to $2.78 billion for the quarter ended June 2025, but it also missed the analyst estimates by 9.07%.
Following the earnings call, the company’s significant shareholder, EVP & COO Larry C Larsen, sold 4,500 shares of the company on August 12, 2025, amounting to a total transaction value of $263,115. Despite the sales, many analysts, including Argus Research and Morgan Stanley, have reiterated their Buy rating for the stock, signaling confidence in its future growth.
The Williams Companies, Inc. (NYSE:WMB) offers an attractive dividend yield of 3.50% with a payout ratio of 98.48% that stands at the upper end of the acceptable range.
10. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield: 3.54%
Exxon Mobil Corporation (NYSE:XOM) finds its way into our list of 11 best energy dividend stocks to invest in. Price target and insider sales increase following record production in the second quarter of 2025.
Texas-based company, Exxon Mobil Corporation (NYSE:XOM), is one of the world’s largest publicly traded international energy and chemical companies. Formed in 1999 through the merger of Exxon Corporation and Mobil Corporation, the company is currently involved in every aspect of the oil and gas industry, from exploration and production to refining, marketing, and the manufacture of petrochemicals.
On August 1, 2025, the company reported its Q2 2025 earnings, where it boasted the highest Q2 production since its foundation over 25 years ago. More than half of the production came from high-return, advantaged assets. The company also announces expansion of its product solution with new projects in China, Singapore, and the UK, expected to drive more than $3 billion of earnings in 2026.
Following the results, analysts have increased their price targets while retaining a Buy rating on the stock. UBS, for instance, increased its price target from $130 to $143, while holding on to the Buy rating for Exxon Mobil Corporation (NYSE:XOM). On the other hand, the company’s Vice President of Corporate Strategic Planning, Darrin L Talley, sold 2,158 shares in a transaction valued at $238,351 on August 25, 2025.
For investors interested in the dividend yield of the company, it currently stands at 3.54% while Exxon Mobil Corporation (NYSE:XOM) maintains a favorable payout ratio of 55.68%.
