In this article, we will take a look at some of the best energy stocks for a reitrement stock portfolio.
Retirement is a significant milestone in life, and preparing for it requires thoughtful planning. Baby boomers, who are well into retirement, aren’t yet completely prepared. A recent study from Vanguard revealed that just 40% of workers between the ages of 61 to 65 are financially aligned with their retirement goals. The research suggested that this group should have sufficient income to keep up their existing lifestyle once they step into retirement.
The rest are likely to come up short. Vanguard’s estimates indicated that the median person aged 61 to 65 faces about $9,000 yearly gap in retirement income, leaving them roughly 24% below what they would need to cover their costs.
On the other hand, Gen Z appears to be in the strongest position, according to the Vanguard study, with about 47% of workers between 24 and 28 projected to have enough savings to carry their present lifestyle into retirement.
Now, planning for retirement and building up savings is just one part of the journey; deciding where to invest those savings takes far more time. In that process, many investors lean toward dividend-paying stocks, considering their strong performance over the long haul.
Historically, dividend stocks have proven to be less volatile than the broader market, offering retirement portfolios protection when conditions turn rocky. Sam Stovall, chief investment strategist at CFRA, made the following comment regarding dividends:
“You could be setting yourself up quite nicely. Because not only do stocks pay a dividend, but they might increase the dividend, and they could benefit from price appreciation as a result of improving earnings outlook and so forth.”
The energy sector is known for its steady dividends and strong commitment to shareholders, providing great options for people looking for passive income during their retirement. According to Janus Henderson, the oil, gas, and energy sector reported an annual underlying dividend growth rate of 3% last year. The sector paid $166.2 billion in dividends in 2024, up significantly from the $118.9 billion it distributed in 2018.
With that said, here are the Best Energy Stocks to Invest in For a Retirement Portfolio.
Our Methodology
To collect data for this article, we observed various companies operating in the energy sector and shortlisted the ones that have consistently grown their dividends over the last 10 years. Then we further filtered out the stocks that have an annual dividend yield of over 3%, and have posted gains of at least 20% over the last ten years. Lastly, we ranked these stocks by the number of hedge funds invested in them at the end of Q3 2025, as per the Insider Monkey database. The following are the Best Energy Stocks to Buy for a Retirement Portfolio.
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. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 26
Enterprise Products Partners L.P. (NYSE:EPD) is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products, and petrochemicals.
On December 2, Morgan Stanley analyst Robert Kad raised the firm’s price target on Enterprise Products Partners L.P. (NYSE:EPD) from $33 to $34, while maintaining an ‘Equal Weight’ rating on the shares. The adjustment is a part of the analyst firm updating its targets for the North American Midstream & Renewable Energy Infrastructure stocks under its coverage. The analyst highlighted the recent framework agreement to build a pipeline to the Pacific Coast to diversify Canada’s oil exports, which comes paired with a proposed carbon capture project. However, he believes that several unknowns still remain.
It also needs mentioning that earlier on December 1, JPMorgan analyst Jeremy Tonet downgraded Enterprise Products Partners L.P. (NYSE:EPD) from ‘Overweight’ to ‘Neutral’, while keeping its price target unchanged at $35, still representing an upside of over 7% as of the writing of this piece.
10. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 27
Enbridge Inc. (NYSE:ENB) is a midstream energy operator that focuses on transporting and distributing oil, natural gas, and natural gas liquids.
Enbridge Inc. (NYSE:ENB) maintained its track record of being an avid dividend payer as on December 3, the company grew its quarterly dividend by 2.9% to C$0.97 per share, extending its payout growth streak to 31 consecutive years. As of the writing of this article, ENB boasts a robust annual dividend yield of 5.77%.
The raised dividend comes as Enbridge Inc. (NYSE:ENB) forecasts a distributable cash flow of C$5.70 – C$6.10 per share for FY 2026, marking a 4% increase from the midpoint of the company’s 2025 guidance. Moreover, the Canadian pipeline operator is expecting to generate an adjusted core profit of C$20.2 billion – C$20.8 billion next year, compared with expectations of C$19.4 billion – C$20 billion for 2025. The growth comes on the back of strong expected demand and new projects entering service, with the company targeting to deploy about CA$10 billion ($7.2 billion) into growth capital projects next year.
Greg Ebel, President and CEO of Enbridge Inc. (NYSE:ENB), stated:
“Next year, Enbridge expects to generate Adjusted EBITDA between $20.2 and $20.8 billion and DCF per share between C$5.70 and C$6.10 per share, which represents a 4% increase from the respective midpoints of our 2025 guidance. We have approximately C$8 billion of new projects entering service in 2026 across our franchises, all of which are underpinned by low-risk commercial frameworks. We also expect strong growth in 2026 from recent rate settlements and rate cases in both Gas Distribution and Gas Transmission. These regulatory outcomes support visible, durable growth through rate escalation and quick-cycle capital recovery mechanisms.
We also announced a 3% increase to our common share dividend for 2026, representing our 31st consecutive annual increase. This increase reinforces our dividend aristocrat status, is underpinned by our growing cash flows and supports Enbridge’s first-choice investment proposition.”
