15 Best High Yield Energy Stocks to Buy Right Now

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.

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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.

13. Kinder Morgan, Inc. (NYSE:KMI)

Dividend Yield as of March 31: 3.49%

Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company has an interest in or operates approximately 78,000 miles of pipelines and 139 terminals.

On March 30, RBC Capital upped its price target on Kinder Morgan, Inc. (NYSE:KMI) from $32 to $35, while maintaining a ‘Sector Perform’ rating on the shares. The bumped target indicates an upside of 4% from the current levels.

The move comes as RBC revised its estimates following its management catch-up call, marking soaring commodity prices and fine-tuning its quarterly shaping and longer pipeline ramp. The analyst firm also expects Kinder Morgan, Inc. (NYSE:KMI) to modestly benefit from the winter storm Fern that hit earlier this year. The freezing temperatures significantly raised the country’s natural gas demand for heating.

Kinder Morgan, Inc. (NYSE:KMI) remains bullish on the US natural gas demand, primarily due to the country’s surging LNG exports. The company expects LNG feed gas demand to average 19.8 Bcf per day in 2026, up 19% from 2025. The demand is then projected to exceed 34 Bcf per day by 2030.

Kinder Morgan, Inc. (NYSE:KMI) boasts an impressive annual dividend yield of 3.49%, putting it among the 14 Best Oil and Gas Dividend Stocks to Buy Right Now.

12. Equinor ASA (NYSE:EQNR)

Dividend Yield as of March 31: 3.55%

Equinor ASA (NYSE:EQNR) is an international energy company headquartered in Norway, with over 25,000 employees in around 20 countries worldwide.

Equinor ASA (NYSE:EQNR) announced on March 24 that it had started development drilling at the Raia natural gas project in the Campos basin offshore Brazil. The project is operated by Equinor with a 35% stake, in partnership with Repsol Sinopec Brasil and Petrobras. Raia is on track to start production in 2028. Once operational, it is expected to produce 126,000 barrels of oil and condensate and 16 million cubic meters of gas per day, representing around 15% of Brazil’s total natural gas demand.

Raia is Equinor ASA (NYSE:EQNR)’s largest international investment to date, totaling around $9 billion. The development’s floating production, storage, and offloading unit (FPSO) is expected to be among the most carbon‑efficient globally. Moreover, the project is estimated to generate up to 50,000 direct and indirect jobs over its 30-year life cycle.

Geir Tungesvik, executive VP, Projects, Drilling, and Procurement, at Equinor ASA (NYSE:EQNR), stated:

“Raia is Equinor’s largest project under execution and marks the deepest water depth operation in our portfolio. Together with our partners and suppliers, we are applying world-class technology and decades of offshore expertise. While drilling takes place, integration and commissioning activities on the FPSO are progressing well putting us on track towards a safe start of operations in 2028.”

11. Canadian Natural Resources Limited (NYSE:CNQ)

Dividend Yield as of March 31: 3.74%

Next on our list of the Best High Yield Energy Stocks is Canadian Natural Resources Limited (NYSE:CNQ). It 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.

On March 30, Raymond James analyst Michael Barth downgraded Canadian Natural Resources Limited (NYSE:CNQ) from ‘Outperform’ to ‘Market Perform’, but also raised the firm’s price target on the stock from C$55 to C$65. The bumped target still indicates a downside of almost 4% from the current levels.

Canadian Natural Resources Limited has posted YTD gains of over 43% on the Toronto Stock Exchange (TSX). The analyst believes that such a performance is ‘unusual’, since the Canadian energy company has the second ‘least torque’ to higher oil prices.

Canadian Natural Resources Limited (NYSE:CNQ) posted its Q4 2025 results in March. The company posted a record total quarterly production of approximately 1.66 million barrels of oil equivalent per day (boepd), while its total annual production for FY 2025 also jumped by 15% YoY to hit a record 1.57 million boepd. CNQ also raised its FY 2026 production forecast to 1.62 million-1.67 million boepd, from 1.59 million-1.65 million boepd previously.

10. TC Energy Corporation (NYSE:TRP) 

Dividend Yield as of March 31: 4.12%

TC Energy Corporation (NYSE:TRP) is one of North America’s leading energy infrastructure companies with operations in the natural gas and power industries.

On March 30, Raymond James raised its price target on TC Energy Corporation (NYSE:TRP) from C$74 to C$78, while maintaining a ‘Market Perform’ rating on the shares. The bumped target still indicates a downside of over 11% from the current levels.

TC Energy Corporation (NYSE:TRP) reported a comparable EBITDA of $11 billion in 2025, up from $10 billion in 2024. The company expects this growth to continue, with 2026 comparable EBITDA projected to be in the range of $11.6 billion to $11.8 billion. TC Energy also expects its comparable EPS for the year to be higher than 2025 levels. Meanwhile, the company is forecasting its 2026 CapEx to be between $6 billion and $6.5 billion, prior to adjustments for non-controlling interests.

TC Energy Corporation (NYSE:TRP) was also recently included in our list of the 13 Best Oil and Gas Storage Stocks to Buy According to Hedge Funds.

9. Eni S.p.A (NYSE:E)

Dividend Yield as of March 31: 4.24%

Eni S.p.A. (NYSE:E) operates as an integrated energy company in Italy, the rest of Europe, the United States, Asia, Africa, and internationally.

On March 24, Morgan Stanley bumped its price target on Eni S.p.A. (NYSE:E) from $39.50 to $58.80, while maintaining an ‘Equal Weight’ rating on the shares. The raised target indicates an upside potential of over 5% from the current share price.

According to Morgan Stanley, it is looking less likely that crude oil prices will return to their pre-conflict levels, even if the US-Iran war comes to an end. As a result, the firm increased its 2027 Brent price estimate to $80 per barrel. Incorporating this and other recent commodity estimates, in addition to the effects of the supply disruption, Morgan Stanley raised its EPS estimates for the European energy majors by around 100% for 2026 and about 50% for 2027. The firm also upgraded its sector view to ‘Attractive’.

Eni S.p.A. (NYSE:E) was also recently included in our list of the 15 Large-cap Stocks with Highest Dividends.

8. TotalEnergies SE (NYSE:TTE)

Dividend Yield as of March 31: 4.27%

TotalEnergies SE (NYSE:TTE) is a global integrated energy company that produces and markets energies.

TotalEnergies SE (NYSE:TTE) revealed on March 30 that it had completed the merger of its UK North Sea upstream business with NEO NEXT, creating a new entity called NEO NEXT+. The combined company is now the largest independent oil and gas producer on the UK continental shelf, with an expected 2026 production of over 250,000 barrels of oil equivalent per day. The French energy major will retain a 47.5% stake in the newly formed entity.

TotalEnergies SE (NYSE:TTE) operated around 27% of the UK Continental Shelf’s gas production last year, with average daily equity production of 104,500 barrels of oil equivalent per day. The deal reflects a broader trend of consolidation in the North Sea, as operators seek to scale portfolios, cut costs, and maximize recovery from mature assets.

Patrick Pouyanné, Chairman and CEO of TotalEnergies SE (NYSE:TTE), commented:

“The completion of this merger and the creation of NEO NEXT+ marks an important step in TotalEnergies’ long‑term commitment to the UK Oil and Gas sector. While contributing to the country’s energy supply, the size and asset portfolio of NEO NEXT+ will foster synergies and enhance the cash flow generation of the company. As the new largest shareholder of NEO NEXT+, we are pleased to bring our extensive UK North Sea operational experience to the new company.”

7. Viper Energy, Inc. (NASDAQ:VNOM)

Dividend Yield as of March 31: 4.68%

Next on our list of the Best High Yield Energy Stocks is Viper Energy, Inc. (NASDAQ:VNOM). It is a publicly traded Delaware corporation focused on owning and acquiring mineral and royalty interests, primarily in the Permian Basin.

On May 27, Morgan Stanley bumped its price target on Viper Energy, Inc. (NASDAQ:VNOM) from $44 to $49, while maintaining an ‘Overweight’ rating on the shares. The revised target indicates an upside of 5% from the current levels.

Morgan Stanley highlighted how crude oil, LNG, and refining margins have hit their highest levels since Russia invaded Ukraine back in 2022. The analyst noted that even if the war in Iran de-escalates, it is looking less likely that the price levels will revert to their previous levels anytime soon.

As a result, Morgan Stanley updated its price deck, raising its 2026 WTI benchmark by 44%, NGLs by 40%, and cracks by 35%. Moreover, the firm noted that its EBITDA estimates across the North American energy operators are surging at an average of around 40% for this year and 23% for 2027.

6. Woodside Energy Group Ltd (NYSE:WDS)

Dividend Yield as of March 31: 4.69%

Founded in Australia, Woodside Energy Group Ltd (NYSE:WDS) engages in the exploration, evaluation, development, production, marketing, and sale of hydrocarbons in the Asia Pacific, Africa, the Americas, and Europe.

Woodside Energy Group Ltd (NYSE:WDS) revealed on March 26 that it had assumed operational control of the Beaumont New Ammonia (BNA) facility in southeast Texas after the completion of ​performance testing and handover from OCI ​Global. The facility, which has the capacity to produce and export up to 1.1 million tonnes per annum (mtpa) of ammonia, adds diversity to the company’s portfolio.

While the plant will start producing ammonia in December, the production of ​lower-carbon ammonia has been delayed till after 2026, due to construction issues at the third-party feedstock supply facility. The company had earlier planned to start producing low-carbon ammonia in the US in the second half of this year.

Woodside Energy Group Ltd (NYSE:WDS) acquired the BNA facility back in 2024, as part of its push to expand into the broader ammonia market.

Liz Westcott, CEO of Woodside Energy Group Ltd (NYSE:WDS), commented:

“Successful completion of performance testing and assumption of operational control of the Beaumont New Ammonia facility is an important milestone in Woodside’s strategy to invest in new energy products and lower-carbon services. In the facility’s operational phase and in the face of current market disruptions, we remain focused on safely delivering ammonia supply to our customers. In the longer term, we retain our goal of supporting the development of a competitive lower-carbon ammonia sector.”

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