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%.
9. Phillips 66 (NYSE:PSX)
Dividend Yield: 3.71%
Phillips 66 (NYSE:PSX) joins our list of 11 best energy dividend stocks to invest in. An unfavorable Supreme Court order follows positive second-quarter results in California.
Texas-based company, Phillips 66 (NYSE:PSX) is a diversified energy manufacturing and logistics company, operating in four main segments: Midstream, Chemicals, Marketing & Specialties, and Refining. Founded in 2012, as a new public company spun off from ConocoPhillips, Phillips 66 (NYSE:PSX) processes, transports, and markets natural gas, natural gas liquids (NGLs), crude oil, and refined products.
Released on July 25, 2025, the company’s earnings call indicated a record high refining utilization rate of 98% since 2018. Phillips 66 (NYSE:PSX) also highlighted the Midstream segment, generating an adjusted EBITDA of approximately $1 billion. It is further anticipated to achieve $4.5 billion annual EBITDA by 2027.
While these results suggest a positive outlook, the Superior Court of California, on July 30, 2025, ordered the company to pay $195 million in exemplary damages to Propel Fuels. This will be in addition to $604.9 million in compensatory damages awarded in October 2024. Phillips 66 (NYSE:PSX) is planning to appeal, and the result of it remains uncertain.
However, the company’s Director, Gregory Hayes, boosted the confidence in the stock by purchasing 8,350 shares in a transaction valued at $1,001,165. Additionally, the dividend yield of 3.71% stands as appealing to investors seeking a stable income in the energy sector.
8. Chevron Corporation (NYSE:CVX)
Dividend Yield: 4.32%
Chevron Corporation (NYSE:CVX) earns a rank in our list of 11 best energy dividend stocks to invest in. Following positive second-quarter results, the company issued a series of notes through its subsidiary.
A global energy company, Chevron Corporation (NYSE:CVX) carries on operations in every part of the energy industry. It is involved in oil, natural gas, and geothermal energy exploration, production, and refining, in addition to manufacturing and marketing lubricants and petrochemicals. The Texas-based company is also investing in lower-carbon energy solutions, including carbon capture and storage (CCS), hydrogen, and geothermal energy.
On August 1, 2025, Chevron Corporation (NYSE:CVX) released its Q2 2025 earnings results, which signified achieving a quarterly production record both in the US and worldwide. This was attributed to the growth in the Permian Basin. The report also acknowledged the acquisition of lithium-rich acreage in Texas and Arkansas, which marks the company’s transition into the lithium market.
Later on August 13, 2025, the company announced the issuance of a series of notes totaling $5.5 billion through its subsidiary Chevron U.S.A. Inc. The notes have varying maturity dates ranging from 2027 to 2035. Through both fixed and floating rate notes, the company aims to secure long-term funding, which strengthens its financial capabilities.
The dividend yield of 4.32%, though low compared to some of the other entrants in our list, still appeals to investors seeking stable income backed by strong financial stability.
7. Kinder Morgan, Inc. (NYSE:KMI)
Dividend Yield: 4.42%
Kinder Morgan, Inc. (NYSE:KMI) earns an entry into our list of 11 best energy dividend stocks to invest in. Amid positive second-quarter growth and pipeline expansion by a subsidiary, the company’s top executive makes a major sale.
Based in Texas, Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America, owning and operating a vast network of natural gas pipelines, product pipelines, and terminals. It also has a significant presence in carbon dioxide transportation and oil production. The company transports approximately 40% of the natural gas consumed in the U.S.
In the second quarter earnings call, released on July 16, 2025, Kinder Morgan, Inc. (NYSE:KMI) reported strong financial results with adjusted EBITDA growth of 6% and adjusted EPS growth of 12%. It also noted an increase in the project backlog from $8.8 billion to $9.3 billion, signaling strong future investment opportunities.
Additionally, on August 18, 2025, Kinder Morgan, Inc. (NYSE:KMI) announced that its subsidiary SFPP, L.P., launched an open season for a pipeline expansion from El Paso, Texas, to Tucson, Arizona. The project will add up to 3,250 barrels per day of capacity for diesel, gasoline, and jet fuel. The open season closes on September 19, 2025.
Amid these developments, the company’s EVP Dax Sanders made significant sales of 30,127 of the company’s shares, amounting to a total sale value of $814,935. On the other hand, the consensus analyst rating from 21 analysts, as per CNN, tilts towards a Buy rating with an upside potential of 18.33%.
Kinder Morgan, Inc. (NYSE:KMI) offers a dividend yield of 4.42%, moderate in comparison to some of the other stocks in our list, but stable with a payout ratio of 94.67%.
6. Global Partners LP (NYSE:GLP)
Dividend Yield: 5.87%
Global Partners LP (NYSE:GLP) enters our list of 11 best energy dividend stocks to invest in. Following the completion of $450 million senior notes placement, the company announced positive and strong Q2 2025 earnings results.
Based in Massachusetts, Global Partners LP (NYSE:GLP) is a publicly traded master limited partnership. It is a leading owner, supplier, and operator of liquid energy terminals, fuelling locations, and convenience stores. With operations covering the purchasing, selling, storing, and transporting of various petroleum products and renewable fuels, the company serves customers in the Northeast, Mid-Atlantic, and other regions of the U.S.
On June 23, 2025, Global Partners LP (NYSE:GLP) completed a private placement of $450 million in senior notes. The notes, due in 2033, have an interest rate of 7.125% per annum. The company intends to use the proceeds to fund a cash tender offer for its outstanding 7% senior notes due in 2027. Also, the company will use a portion to repay part of the borrowings under its credit agreement.
After optimizing its debt structure, the company released its Q2 earnings results on August 7, 2025. The report highlighted growth in net income by 8%, adjusted EBITDA by 7%, and adjusted DCF by 9% year-over-year. Marking the 15th consecutive increase, the company also announced the approval of a quarterly cash distribution of $0.75 per unit.
Global Partners LP (NYSE:GLP) offers a dividend yield of 5.87%, supported by a payout ratio of 118.65%, suggesting an attractive income accompanied by moderate risks.
5. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield: 6.88%
Enterprise Products Partners L.P. (NYSE:EPD) is among the list of 11 best energy dividend stocks to invest in. The company’s stocks shine with a significant purchase from a top executive and the takeover of Occidental.
The North American midstream energy company, Enterprise Products Partners L.P. (NYSE:EPD) is engaged in the business of transporting, processing, and storing natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. Operating from its headquarters in Texas, the company uses its extensive network of pipelines to connect energy supply basins with domestic and international markets.
After reporting an adjusted EBITDA of $2.4 billion and distributable cash flow of $1.9 billion in its Q2 earnings results, released on July 28, 2025, the company witnessed a bold purchase from one of its top executives, Director William C. Montgomery. The Director purchased 16,000 shares of the company’s stock on July 30, 2025, in a transaction valued at $504,800, thus reinforcing the confidence in the stock’s growth prospects.
Additionally, on August 22, 2025, Enterprise Products Partners L.P. (NYSE:EPD) announced the acquisition of a natural gas gathering affiliate of Occidental. The debt-free transaction of $580 million was made in cash. With this acquisition, the company gains access to certain natural gas gathering systems in the Midland Basin and 200 miles of natural gas gathering pipelines, which helps in expanding Enterprise Products Partners L.P. (NYSE:EPD)’s natural gas gathering footprint in the Midland Basin.
The company attracts income-seeking investors with a dividend yield of 6.88% covered by a payout ratio of 79.40% to support its dividend payments.
4. Hess Midstream LP (NYSE:HESM)
Dividend Yield: 6.89%
Hess Midstream LP (NYSE:HESM) secures a place in our list of 11 best energy dividend stocks to invest in. The company has announced $100 million repurchase agreement following a strong quarter and an updated full-year 2025 guidance.
Headquartered in Texas, the fee-based, growth-oriented midstream company, Hess Midstream LP (NYSE:HESM) owns, operates, and develops a diverse set of midstream assets, providing services to Hess Corporation and other third-party customers. Its assets, including gathering, processing, storage, and terminaling facilities, are primarily located in the Bakken and Three Forks shale plays in the Williston Basin area of North Dakota.
On August 5, 2025, Hess Midstream LP (NYSE:HESM) announced an accretive $100 million repurchase. The repurchase includes $30 million Class B units of its subsidiary, Hess Midstream Operations LP, from its sponsor, Chevron Corporation, and $50 million Hess Midstream’s Class A shares from the public. Jonathan Stein, Chief Executive Officer of Hess Midstream, has made the following statement in relation to the repurchase:
“…We expect to continue to have more than $1.25 billion of financial flexibility through 2027 for incremental shareholder returns, including the potential for further unit and share repurchases over this period.”
Additionally, following a strong Q2 earnings, the company updated the full-year 2025 net income guidance to $685 – $735 million, signaling confidence in its future growth. Hess Midstream LP (NYSE:HESM)’s dividend yield currently stands at 6.89%.
3. MPLX LP (NYSE:MPLX)
Dividend Yield: 7.60%
MPLX LP (NYSE:MPLX) holds a place in our list of 11 best energy dividend stocks to invest in. The company sees its price target elevated despite the Q2 2025 earnings results missing the estimates.
Headquartered in Ohio, MPLX LP (NYSE:MPLX) is a diversified, growth-oriented master limited partnership formed by Marathon Petroleum Corporation. The company operates a network of midstream energy infrastructure and logistics assets. This includes pipelines, terminals, and natural gas gathering and processing facilities. It also offers a full suite of services, from the wellhead to the end-user.
On August 5, 2025, MPLX LP (NYSE:MPLX) released its second-quarter earnings for 2025. It included the announcement of the Northwind Midstream acquisition. The $2.375 billion takeover is expected to enhance the Permian Natural Gas and NGL value chain. On the other hand, it was also noted that the earnings of $1.03 per unit missed the analyst estimate of $1.07, and the quarterly revenues of $3 billion missed the anticipated $3.2 billion.
Despite the results falling the expectations, the company saw its price target elevated from $57 to $60 by Stifel and Morgan Stanley. Stifel maintains a Buy rating on the stock, and Morgan Stanley sticks to their Equal Weight rating on MPLX LP (NYSE:MPLX)’s shares.
Alongside these improvements, MPLX LP (NYSE:MPLX) attracts income-seeking investors with a dividend yield of 7.60%.
2. Plains All American Pipeline, L.P. (NASDAQ:PAA)
Dividend Yield: 8.63%
Plains All American Pipeline, L.P. (NASDAQ:PAA) earns a spot in our list of 11 best energy dividend stocks to invest in. The company improves its financial flexibility with a strong quarter and the divestiture of NGL business.
Texas-based company, Plains All American Pipeline, L.P. (NASDAQ:PAA) is a publicly traded master limited partnership operating in the North American midstream energy sector. The company owns an extensive network of infrastructure to transport, store, and market crude oil and natural gas liquids (NGLs). From key producing basins to major market hubs, the company has assets throughout the U.S. and Canada.
On August 8, 2025, Plains All American Pipeline, L.P. (NASDAQ:PAA) released its second-quarter earnings results, highlighting an adjusted EBITDA of $672 million owing to high performance in the crude oil segment, which accounted for $580 million. Additionally, it also reported the sale of its NGL business to Keyera. The transaction, valued at $3.75 billion, anticipates a closure in the first quarter of 2026 and offers the company an improvement in financial flexibility.
While the stock’s performance during the month was down by -6.92%, the most recent weekly performance saw a slight 0.57% increase following the release of the Q2 earnings results. With a dividend yield of 8.63%, the company continues to gain the attention of the income-seeking investors.
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.
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