In this article, we are going to discuss the 15 best high yield energy stocks to buy right now.
As of the writing of this piece, the S&P Energy index has surged by over 34% since the beginning of 2026, compared to a decline of almost 5% posted by the overall S&P 500. The outperformance is driven primarily by the soaring oil prices caused by the US-Iran war.
The significant supply disruptions from the conflict have pushed the Brent crude oil price to its highest level since the Russian invasion of Ukraine back in 2022. As a result, the average gasoline price in the US also rose past the $4 per gallon mark this week, a threshold it hadn’t reached since August 2022.
While the skyrocketing prices are a headache for consumers around the world, they have come as a serious tailwind for Western oil companies. According to the intelligence firm Rystad Energy, the US oil operators could earn an additional $63 billion in sales this year from the multi-year high in prices. This provides a significant cash flow boost to an industry that is already known for its strong commitment to shareholders and high dividends.
With that said, here are the Best High Yield Energy Stocks to Invest in.
Maridav/Shutterstock.com
Our Methodology
To collect data for this article, we referred to several stock screeners to find energy stocks with an annual dividend yield of over 3% as of March 30. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Best High Yield Energy Stocks to Buy in 2026.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
15. Shell plc (NYSE:SHEL)
Dividend Yield as of March 31: 3.11%
Shell plc (NYSE:SHEL) is an integrated energy company with operations spanning exploration, production, refining, marketing, and chemical manufacturing, alongside growing investments in biofuels and hydrogen.
On March 24, Morgan Stanley downgraded Shell plc (NYSE:SHEL) from ‘Overweight’ to ‘Equal Weight’, but raised its price target on the stock from $80.20 to $95.50. The revised target indicates an upside of over 2% from the current levels.
The development comes after Morgan Stanley re-shuffled its order to preference towards higher-beta stocks in the European energy sector. According to the firm’s analysts, Martijn Rats and Guilherme Levy, the path for global crude oil prices to return to their pre-conflict levels is ‘narrowing’, even if the US-Iran war comes to an end. As a result, the analysts bumped their Brent price estimate for 2027 to $80 per barrel. Incorporating this and other recent commodity estimates, as well as disruption effects, Morgan Stanley raised its EPS estimates for European energy majors by roughly 100% for 2026 and around 50% for 2027.
On the other hand, BofA seems bullish on Shell plc (NYSE:SHEL) and recently raised its price target on the stock (read the details here).
14. Chevron Corporation (NYSE:CVX)
Dividend Yield as of March 31: 3.44%
Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.
On March 27, Morgan Stanley analyst Devin McDermott raised the firm’s price target on Chevron Corporation (NYSE:CVX) from $174 to $212, while keeping an ‘Overweight’ rating on the shares. The increased target reflects an upside potential of over 2% from the current share price.
Morgan Stanley highlighted how crude oil, LNG, and refining margins are at their highest since Russia invaded Ukraine back in 2022. According to the firm, it is looking less likely that these markets will revert to their prior levels even if we see a de-escalation in the US-Iran war.
As a result, Morgan Stanley bumped its price deck, raising its 2026 WTI benchmark by 44%, NGLs by 40%, and cracks by 35%. Moreover, the analyst firm increased its average EBITDA estimates across its North America energy coverage by around 40% for 2026 and 23% in 2027.
Chevron Corporation (NYSE:CVX) was also recently included in our Dividend Kings and Aristocrats List: 32 Biggest Stocks.
Hedge Fund Resource Center