In this article, we will look at the 9 Best Energy Dividend Stocks To Buy 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 buy 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 buy 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 buy 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.
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