9 Best Energy Dividend Stocks to Invest In Now

In this article, we will look at the 9 Best Energy Dividend Stocks to Invest In Now.

The US-Iran War affected the energy supply chain amid heightened global demand. While oil and gas prices have pulled back significantly after rising to multi-year highs, the energy sector is still in the spotlight amid ongoing rotation from technology stocks. Unending geopolitical tensions and massive electricity demand from AI data centers assert the bullish momentum around energy equities. The S&P 500 Energy segment is up about 18% year to date, dwarfing the overall market’s 7% gain.

The outperformance stems from the free cash flow of the three largest companies in the energy index, which rose by $60 billion this year. Cash flow for the two largest refiners is also up by $18 billion. The heightened cash flow positions the company to return value through dividends and buybacks.

The energy stocks outlook remains positive, given that private and government stockpiles of oil and refined products worldwide have been depleted. Given that countries will have to refill them, it affirms the strong demand that should continue to support energy companies.

According to Bank of America, oil companies are well-positioned to ride both the bear and the bull cases.

“If oil prices remain high, production will increase, improving pipeline volume,” analyst Jean Ann Salisbury said in a March note. “If prices decrease, the economics improve for new pipeline capacity that is coming online in gas-heavier areas.”

With oil prices above $70 a barrel, energy companies continue to generate significant cash flow, strengthening their prospects for paying dividends. Investors looking to capitalize on accelerated energy demand and generate attractive income on the side can position their portfolios around some of the best energy dividend stocks to buy now.

Our Methodology

To compile a list of the 10 best energy dividend stocks to invest in now, we used several stock screeners to identify energy stocks with an annual dividend yield of over 3% as of June 25, 2026. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment and boast significant hedge fund holdings. Finally, we ranked the stocks in ascending order based on the number of hedge funds that hold stakes in them.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

Best Energy Dividend Stocks To Buy Now

9. Cheniere Energy Partners, L.P. (NYSE:CQP)

Dividend Yield: 5.57%

Number of Hedge Fund Holders: 5

Cheniere Energy Partners, L.P. (NYSE:CQP) is one of the best energy dividend stocks to invest in now.

On May 28, Cheniere Energy Partners, L.P. (NYSE:CQP) confirmed that its subsidiary, Sabine Pass Liquefaction, has entered into an engineering, procurement, and construction contract with Bechtel Energy. The lump-sum agreement covers the first phase of the SPL Expansion Project, which is being developed for up to three large-scale liquefaction trains.

Upon completion, the SPL project will have a peak production capacity of up to 20 million tonnes per annum. Phase 1 is commercially underpinned by long-term agreements and is expected to have a total LNG production capacity of over 6 mtpa. Cheniere Partners expects to reach a financial investment decision on Phase 1 by early 2027.

Meanwhile, Chenier priced $2 billion of senior notes with an interest rate of 5.35% per annum. The company is to use net proceeds from the offering to finance general partnership purposes, including debt repayment and capital expenditures.

Cheniere Energy Partners, L.P. (NYSE:CQP) is a master limited partnership (MLP) that processes and exports Liquefied Natural Gas (LNG). It owns and operates the Sabine Pass LNG terminal in Louisiana, one of the largest LNG export facilities in the world, which supercools natural gas into a liquid state so it can be shipped globally to utilities and energy companies.

8. Plains All American Pipeline, L.P. (NASDAQ:PAA)

Dividend Yield: 7.76%

Number of Hedge Fund Holders: 9

Plains All American Pipeline, L.P. (NASDAQ:PAA) is one of the best energy dividend stocks to invest in now.

On June 15, Plains All American Pipeline, L.P. (NASDAQ:PAA) affirmed its commitment to pursuing multiple growth projects across its Permian long-haul, Canadian gathering, and Permian gathering businesses. Consequently, the company expects capital spending for the year to range between $400 million and $450 million, up from the previous guidance of $350 million.

It also expects maintenance capital to remain at $185 million. The heightened capital spending also comes as the company looks to capitalize on soaring demand for North American hydrocarbons amid tightening global crude oil supply.

Higher capital spending will also come from the company investing in a broader Permian system to accommodate additional gathering volumes in the New Mexico Delaware Basin. Plains All American Pipeline expects the projects to generate higher returns and contribute to the EBITDA profile in 2027.

Plains All American Pipeline, L.P. (NASDAQ:PAA) is a major midstream energy company that transports, stores, and markets crude oil across the United States and Canada. The company acts as a critical link between energy producers and refineries, delivering oil from major production basins to key market hubs and coastal areas.

7. E N I Spa (NYSE: E)

Dividend Yield: 5.19%

Number of Hedge Fund Holders: 14

E N I Spa (NYSE:E) is one of the best energy dividend stocks to invest in now.

On June 22, E N I Spa (NYSE:E) reiterated its Final Investment Decision for the Greater PAJ project in Angola. The company maintains an interest in the major offshore oil development project in Blocks 31 and 31/21 through Azule Energy, an entity it equally owns with BP. The project represents a coordinated approach to developing hydrocarbon resources across two adjacent concessions.

Eni SpA remains confident of delivering the first oil in less than 3 years, in the first half of 2029, as it works on a concept comprising 17 wells connected to a new Floating Production Storage and Offloading vessel (FPSO) with a capacity of 95,000 barrels of oil a day.

E N I Spa (NYSE:E) is a global energy company headquartered in Rome, Italy, operating in 62 countries. It is an “integrated energy” corporation, meaning it covers the entire energy value chain—from extracting oil and gas to producing renewable energy and biofuels, and supplying energy directly to consumers.

6. Equinor ASA (NYSE:EQNR)

Dividend Yield: 4.84%

Number of Hedge Fund Holders: 28

Equinor ASA (NYSE:EQNR) is one of the best energy dividend stocks to invest in now.

On June 16, Equinor ASA (NYSE:EQNR) affirmed plans to double its 2026 share buyback program to $3 billion, up from $1.5 billion. It also plans to introduce a more predictable framework for annual buybacks of $2 billion to $4 billion by early next year. The company also plans to increase its quarterly cash dividend per share by more than 5% as part of its commitment to returning value to shareholders.

The proposed buyback and cash dividend increase is from chief executive officer Anders Opedal, who reiterates that the company is positioned to benefit from continued growth in global energy demand. It also comes amid a push to leverage the portfolio across oil, gas, power generation, and marketing. The company is on course to increase its total production by about 150,000 barrels per day to 2.3 million boepd by 2030.

Equinor ASA (NYSE:EQNR) is a multinational energy company that explores for, produces, and markets petroleum products, while heavily investing in renewable energy and low-carbon technologies. The company is actively shifting its portfolio to achieve net-zero emissions by 2050.

5. TotalEnergies SE (NYSE:TTE)

Dividend Yield: 4.58%

Number of Hedge Fund Holders: 30

TotalEnergies SE (NYSE:TTE) is one of the best energy dividend stocks to invest in now.

On June 18, TotalEnergies SE (NYSE:TTE) unveiled MethaneLive, a global methane-emission monitoring center. The monitoring center leverages real-time data and advanced algorithms to detect, measure, and analyze emissions, with a view to reducing them.

The new center builds on the deployment of permanent, real-time methane emissions monitoring using 13,000 sensors across onshore and offshore upstream sites. TotalEnergies is to leverage digital tools to analyze the vast amounts of data generated by sensors to identify the root causes of anomalies and recommend actions.

Methane Live has already detected 35 fugitive methane emissions across various facilities and enabled corrections through targeted maintenance operations. TotalEnergies is also deploying agentic AI solutions to effectively target the highest-emitting equipment and improve fugitive emissions detection.

TotalEnergies SE (NYSE:TTE) is a global, integrated multi-energy company. It produces and markets a broad range of energy sources, including oil, biofuels, natural gas, green gases, renewables (solar and wind), and electricity. Operating in over 130 countries, it supplies fuels, lubricants, and power to millions of consumers and businesses.

4. Energy Transfer LP (NYSE:ET)

Dividend Yield: 7.13%

Number of Hedge Fund Holders: 34

Energy Transfer LP (NYSE:ET) is one of the best energy dividend stocks to invest in now.

On June 4, Matador Resources announced multiple agreements with affiliates of Energy Transfer LP (NYSE:ET), including a new gas supply agreement designed to improve pricing netbacks and reduce exposure to Waha Hub volatility in the second half of 2026. The deal builds on Matador’s October 2025 transportation agreement to move 500,000 MMBtu per day on Energy Transfer’s Hugh Brinson Pipeline, which becomes effective later in 2026.

The new supply agreement provides Matador with a bridge until that pipeline is operational, enabling the company to secure higher natural gas prices for part of its production. For Energy Transfer, the arrangement ensures additional gas volumes to meet growing demand from AI‑driven data centers and power generation markets, reinforcing its position as a critical infrastructure provider in the Permian Basin.

Matador also executed separate natural gas liquids (NGL) agreements with ET affiliates, dedicating Delaware Basin NGLs to Energy Transfer’s system. CEO Joseph Wm. Foran praised the collaboration, noting it enhances flow assurance and pricing flexibility.

On June 26, the Arizona Ridge Riders announced a multi‑year partnership with Energy Transfer LP (NYSE: ET) ahead of the 2026 PBR Teams season, marking the company’s first professional bull riding sponsorship. The deal, to be formally unveiled June 27 in Buckeye, Arizona, makes Energy Transfer the Official Partner of the team and Presenting Sponsor of Ridge Rider Days, with branding featured on jerseys throughout the season.

Beyond visibility, the partnership includes a youth development program, highlighted by a Youth Rider Clinic and a new Bull Riding Scholarship for Arizona athletes, alongside ambassador programming led by actor Mo Brings Plenty. For Energy Transfer, the sponsorship aligns community engagement with brand expansion while reinforcing its broader infrastructure strategy, including the planned Desert Southwest Pipeline project to deliver natural gas to Phoenix.

Energy Transfer LP (NYSE:ET) is a major American midstream energy company that owns and operates approximately 140,000 miles of pipelines across 44 states. It primarily transports, stores, and terminals natural gas, crude oil, natural gas liquids (NGLs), and refined products, serving as a critical logistics link between energy producers and end-users.

3. Enbridge Inc. (NYSE:ENB)

Dividend Yield: 5.12%

Number of Hedge Fund Holders: 37

Enbridge Inc. (NYSE:ENB) is one of the best energy dividend stocks to invest in now.

On June 16, Enbridge Inc. (NYSE:ENB) and its wholly owned subsidiary, Enbridge Pipelines Inc., completed a previously announced note exchange transaction. Under the transaction, medium-term notes issued by Enbridge Pipelines were exchanged for newly issued Enbridge notes with similar financial terms.

The transaction is expected to consolidate Enbridge’s debt. It will also offer operational, structural, and capital markets benefits to both entities and note holders. The note exchange is expected to influence financing options and how the market views the company’s debt profile.

Enbridge exited the first quarter with available annual investment capacity of C$10-C$11 billion. Consequently, it is well-positioned to pursue investments in growth projects across all core business units.

Enbridge Inc. (NYSE:ENB) is a major North American energy infrastructure company. They primarily transport, distribute, and generate energy. Their operations ensure that essential fuels reach millions of consumers across the continent daily.

2. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

Dividend Yield: 6.99%

Number of Hedge Fund Holders: 41

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is one of the best energy dividend stocks to invest in now.

On June 20, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)’s board approved a $1.2 billion investment to develop a renewable jet fuel plant. The company is to construct a plant with a capacity to produce up to 15,000 barrels per day of renewable fuels. It is to work on jet fuel known as bioQAV and renewable diesel, but it is unclear whether the renewable diesel is to be supplied as part of marine biofuel.

The $1.2 billion investment is part of Petroleo Brasileiro’s 2026 to 2030 strategic plan, which seeks to increase the supply of lower-carbon fuels in Brazil. Construction on the plant is to start this year and come online in 2030.

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is Brazil’s largest integrated energy company. It specializes in the exploration, extraction, refining, and distribution of crude oil and natural gas. The company is heavily focused on deepwater and ultra-deepwater offshore oil fields (particularly the “pre-salt” reserves).

1. Chevron Corporation (NYSE:CVX)

Dividend Yield: 4.16%

Number of Hedge Fund Holders: 103

Chevron Corporation (NYSE:CVX) is one of the best energy dividend stocks to invest in now.

On June 22, Chevron Corp (NYSE:CVX) entered into a strategic partnership with Microsoft to develop a co-located facility. The facility is to provide natural gas-fired power for the software giant’s data center in Texas. The Co-located facility, dubbed Project Kilby, is to provide dedicated electricity to Microsoft’s data center campus for 20 years.

The campus is poised to expand Microsoft’s data center capacity by 2 gigawatts, supporting over 6,000 construction jobs and hundreds of permanent operational roles. The power supply facility should be up and running by 2028 and ramp up to 2.67 gigawatts over time.

While Chevron is poised to announce its final investment decision on the project before year’s end, last year it confirmed it is partnering with investment firm Engine No 1 and electric services company GE Vernova on the project.

Chevron Corporation (NYSE:CVX) is one of the world’s largest integrated energy companies, operating across every phase of the oil, natural gas, and alternative energy industries.

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