11 Best Energy Dividend Stocks to Invest in

Page 10 of 10

1. Western Midstream Partners, LP (NYSE:WES)

Dividend Yield: 9.49%

Western Midstream Partners, LP (NYSE:WES) secures a spot in our list of 11 best energy dividend stocks to invest in. The company strengthens its position in the market with the acquisition of Aris Water Solutions and the sanctioning of the second train.

The growth-oriented master limited partnership Western Midstream Partners, LP (NYSE:WES) owns, operates, acquires, and develops midstream energy assets. Based in Texas, the company focuses on gathering, compressing, processing, and transporting natural gas, crude oil, and natural gas liquids (NGLs). Its assets are located in the Rocky Mountains and the Texas-New Mexico border region.

On August 6, 2025, Western Midstream Partners, LP (NYSE:WES) announced a merger agreement with Aris Water Solutions. The value of the merger stands at $2 billion, and the company is expecting to complete it in Q4 2025. With this acquisition, the company strengthens its position as a leading midstream water services provider in the Delaware Basin. The annualized cost synergies that the company anticipates are $40 million. The boards of directors of both companies have approved the merger.

Also, based on the second quarter earnings call released on August 7, 2025, Western Midstream Partners, LP (NYSE:WES) has sanctioned a second train at the North Loving natural gas processing plant. The move aims to increase capacity and assist future growth. Alongside these notable strategic moves, the company currently offers a dividend yield of 9.49%, backed by a payout ratio of 108.77%.

While we acknowledge the potential of WES to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WES and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 Best Dividend Stocks with a Consistent 3-Year Payout History and 11 Best Short Squeeze Stocks to Buy Now.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.

Page 10 of 10