In this article, we are going to discuss the best energy stocks to buy for dividends in 2026.
The S&P Energy index delivered gains of almost 5% in 2025, compared to the total returns of 16.4% by the S&P 500. Although the late-year decline in crude prices pushed the overall energy sector to lag, some industry segments performed well. While upstream producers struggled, refiners, integrated majors, and midstream companies posted far stronger results.
With the industry facing oversupply issues and a low-priced environment, investors rewarded companies that demonstrated durability, capital discipline, and downstream leverage over pure production growth. This trend was observed throughout last year and is likely to persist also in 2026, with winners to be determined less by the movement of oil prices and more by execution, capital discipline, and where each player positions itself along the value chain.
The rising geopolitical tensions and the recent US action in Venezuela could also have a major impact on the energy sector going forward. While it will still take significant time, investment, and some much-needed political stability to revive Venezuela’s crumbling infrastructure, it remains a fact that the country’s oil reserves are the largest on the planet and could provide a concrete advantage to companies that play their cards right.
With that said, here are the Best Energy Dividend Stocks to Buy Now.
Our Methodology
To collect data for this article, we referred to several stock screeners to identify energy stocks with the most hedge fund investors in the Insider Monkey database as of the end of Q3 2025. Then we shortlisted the stocks that had an annual dividend yield of at least 3% as of January 19, 2025. The following are the Best Energy Dividend Stocks According to Hedge Funds.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Hedge Fund Holders: 45
Dividend Yield as of Jan. 19: 4.97%
Canadian Natural Resources Limited (NYSE:CNQ) is a senior crude oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the UK portion of the North Sea, and offshore Africa.
According to reports on January 14, Canadian Natural Resources Limited (NYSE:CNQ) is in talks to acquire a $1-billion-plus portfolio of natural gas properties in Alberta from Tourmaline Oil. Tourmaline is among the biggest natural gas producers in Canada’s Montney Basin shale play, which produces around 10 bcf/d of natural gas, or roughly half of the country’s output. The basin has recently garnered significant interest following the launch of the LNG Canada export terminal in British Columbia last year.
Canadian Natural Resources Limited (NYSE:CNQ) witnessed a sharp downturn earlier this month following the US action in Venezuela, as it significantly increased the prospects of the US Gulf Coast refiners shifting from Canadian to Venezuelan crude, since the two are similar. Additionally, there have also been concerns that the cheaper Venezuelan oil pouring into the US would push down the price that American buyers pay to Canadian producers, driving down margins and profits. However, the stock has recovered since then as markets came to the realization that it will still take much time and investment, as well as some much-needed political stability, for Venezuelan crude to enter the United States.
10. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 47
Dividend Yield as of Jan. 19: 3.47%
Phillips 66 (NYSE:PSX) is a leading integrated downstream energy provider that is engaged in refining, transporting, and marketing fuels.
Phillips 66 (NYSE:PSX) received a boost on January 16 when Scotiabank analyst Paul Cheng raised the firm’s price target on the stock from $133 to $140, while maintaining a ‘Sector Perform’ rating on the shares. The revision comes as the firm adjusted its price targets for the US Integrated Oil, Refining, and Large Cap E&P stocks under its coverage. The analyst expects earnings for the quarter to be straightforward, as there were no major weather disruptions this winter.
On the other hand, JPMorgan lowered its price target on Phillips 66 (NYSE:PSX) from $154 to $151 on January 13, but the firm kept its ‘Overweight’ rating on the shares. The updates come as the analyst firm adjusted its targets for recent commodity prices as part of a preview for the fourth quarter.
With a robust annual dividend yield of 3.47%, Phillips 66 (NYSE:PSX) was recently included in our list of the Best Energy Stocks for a Retirement Stock Portfolio.
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