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.”
9. OGE Energy Corp. (NYSE:OGE)
Number of Hedge Fund Holders: 31
OGE Energy Corp. (NYSE:OGE), through its subsidiary, operates as an energy services provider in the United States. With about 7,116 megawatts of capacity, the company generates, transmits, distributes, and sells electric energy.
OGE Energy Corp. (NYSE:OGE) reiterated its commitment to shareholders on December 3 when it announced a dividend of $0.425 per share to all shareholders as of the January 5 record date, payable on January 30, 2026. The company has been growing its payouts for 19 consecutive years and boasts an annual dividend yield of 3.96%, putting it among the 14 Best Utility Dividend Stocks to Buy Now.
OGE Energy Corp. (NYSE:OGE) continues to invest in expansion to make sure it can keep up with the expected surge in energy demand due to the AI boom and rapid industrialization. It was announced last month that the company has launched a public offering of $345 million worth of common stock, while also granting underwriters an option to purchase up to $51.75 million of additional shares. OGE intends to use the proceeds to fund capital expenditures, including the Horseshoe Lake generating units 13 and 14, and Ft. Smith to Muskogee Transmission line. Additionally, the funds will be utilized for other general corporate purposes, including to repay or refinance debt.
In other news, Barclays reiterated its ‘Buy’ rating on OGE Energy Corp. (NYSE:OGE) on December 1 and assigned it a price target of $51, representing an upside potential of over 18% as of the writing of this piece.
8. Public Service Enterprise Group Incorporated (NYSE:PEG)
Number of Hedge Fund Holders: 39
Next on our list of the Best Energy Stocks for a Retirement Portfolio is Public Service Enterprise Group Incorporated (NYSE:PEG), a predominantly regulated energy company that engages in the provision of electric and gas services.
On November 20, Morgan Stanley lowered its price target on Public Service Enterprise Group Incorporated (NYSE:PEG) from $109 to $107, but kept an ‘Overweight’ rating on its shares. The adjustment comes as a part of the analyst firm adjusting its price targets for Regulated & Diversified Utilities / IPPs in North America under its coverage. Moreover, the analyst highlighted that the utilities sector underperformed the wider market in October.
Public Service Enterprise Group Incorporated (NYSE:PEG) has grown its distributions for 14 consecutive years, and on November 18, the company announced a quarterly dividend of $0.63 per share. To help sustain its dividend growth, PSEG is currently working on a 5-year capital investment program of $22.5 billion to $26 billion, without the need to issue new equity or sell assets. As of the writing of this piece, the stock offers a robust annual dividend yield of 3.2%.
7. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Holders: 43
Consolidated Edison, Inc. (NYSE:ED) operates one of the largest energy delivery systems in the world, providing electric, gas, and steam service to the 10 million people living in New York City and Westchester County.
Consolidated Edison, Inc. (NYSE:ED) recently announced that it has agreed to divest its approximately 6.6% interest in Mountain Valley Pipeline to a fund managed by Ares Management. The deal, which includes the utility’s share in both the Mountain Valley Pipeline and the Mountain Valley Pipeline Mainline Expansion, is valued at $357.5 million. The transaction is expected to close in the first half of 2026, subject to customary closing conditions, as well as the potential exercise of preferential rights by the founding members of the Mountain Valley Pipeline. ED intends to use the proceeds to partially offset its common equity needs for next year and for general corporate purposes.
In other news, Consolidated Edison, Inc. (NYSE:ED) suffered a blow on November 21 when President Trump and New York City Mayor-elect Zohran Mamdani both agreed that the utility needed to cut its rates. The President told reporters at the White House:
“We’ve gotten fuel prices way down, but it hasn’t shown up in Con Edison, and we’re gonna have to talk to them. We have to get Con Edison to start lowering the rates.”
6. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Hedge Fund Holders: 45
Canadian Natural Resources Limited (NYSE:CNQ) 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 December 4, Canadian Natural Resources Limited (NYSE:CNQ) announced the pricing of its medium-term notes with maturities of 3, 5, and 10 years, with coupons of 3.3%, 3.75%, and 4.55% respectively. The offering is expected to close on December 8, with net proceeds of C$1.65 billion going towards general corporate purposes.
In other news, earlier on November 24, Desjardins analyst Chris MacCulloch downgraded Canadian Natural Resources Limited (NYSE:CNQ) from ‘Buy’ to ‘Hold’, while assigning it a price target of C$52.
Canadian Natural Resources Limited (NYSE:CNQ) has grown its dividends for 25 consecutive years with a CAGR of 21%. The company also currently boasts an impressive annual dividend yield of 4.89%, putting it among the 13 Best Canadian Dividend Stocks to Buy and Hold for the Long Term.
5. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 47
Phillips 66 (NYSE:PSX) is a leading integrated downstream energy provider that is engaged in refining, transporting, and marketing fuels.
Phillips 66 (NYSE:PSX) announced on December 1 that it has closed the sale of a 65% stake in its Germany and Austria retail marketing business to a consortium owned by Stonepeak Partners LP and Energy Equation Partners. Phillips will retain a 35% non-operating interest in the business through a newly formed JV.
The transaction values the business at an enterprise value of approximately $2.8 billion, with Phillips 66 (NYSE:PSX) receiving approximately $1.6 billion in pre-tax proceeds. The strategic move is aimed at bolstering the company’s balance sheet, in addition to streamlining its portfolio.
In other news, Phillips 66 (NYSE:PSX) received a lift on December 5 when Piper Sandler raised its price target on the stock from $170 to $171, while maintaining a ‘Neutral’ rating on its shares. The update comes after the Houston-based company hosted an investor trip to the Permian Basin last week, highlighting the growth and potential of its Midstream business. The analyst believes that investors have turned a blind eye to the segment, despite its contribution of around 40% in the expected EBITDA for 2025, and $500 million of projected EBITDA growth over the next two years.
Phillips 66 (NYSE:PSX) was recently included among the 14 Best US Stocks to Buy for Long Term.
4. Entergy Corporation (NYSE:ETR)
Number of Hedge Fund Holders: 56
Entergy Corporation (NYSE:ETR) is an integrated energy company that provides electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
Entergy Corporation (NYSE:ETR) made headlines on December 1 when the company broke ground on two combined-cycle combustion turbine generation facilities in Louisiana. Recently approved by the Louisiana Public Service Commission, the two power plants will add approximately 1.5 GW of natural gas generation capacity to help power Meta’s planned hyperscale campus in the state. Both projects are expected to come online by late 2028 and are projected to deliver over $650 million in customer savings over the next 15 years.
Phillip May, President and CEO at Entergy Louisiana, commented:
“These facilities represent the next step in Entergy Louisiana’s long-term strategy to modernize our generation fleet and deliver reliable, cost-effective power to our customers. By investing in efficient technologies and robust infrastructure, we’re ensuring that Louisiana remains a competitive, attractive place to live, work, and do business both today and well into the future.”
Given the ballooning demand from the AI boom and its accompanying data centers, Entergy Corporation (NYSE:ETR) recently updated its capital plan, with the utility targeting to spend $41 billion from 2026 through 2029. The company reported in its latest earnings call that its data center pipeline has continued to grow, extending from 7 to 12 gigawatts.
3. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 62
Duke Energy Corporation (NYSE:DUK) engages in the distribution of natural gas and energy-related services. The company owns and operates a diverse mix of regulated power plants – including hydro, coal, nuclear, natural gas, solar, and battery storage.
Duke Energy Corporation (NYSE:DUK) suffered a blow earlier this month after it was reported that North Carolina leaders had opposed the proposed rate hikes by the utility. Duke revealed last month that it is requesting North Carolina regulators to approve a hike of around 15% in its rates over the next two years, which would see its residential customers paying an additional $20 to $30 per month by 2028. The move comes as the company looks to propose new investments in the state to ensure reliability and keep up with the expanding demand.
However, North Carolina Attorney General Jeff Jackson has now decided to intervene in the process and review it to ‘ensure it is necessary’. Subsequently, North Carolina Gov. Josh Stein also formally opposed Duke’s proposed rate hike and issued the following statement:
“I am pleased that the North Carolina Department of Justice is fighting for the people of North Carolina. Duke Energy’s proposed rate hike is simply too high and comes as the company is also retreating on more affordable clean energy. At a time when families are struggling to make ends meet, we should be doing everything we can to make life more affordable, not less. I will continue to fight on behalf of every North Carolinian to lower costs and grow the economy.”
The North Carolina Utilities Commission is expected to make its decision on the matter in late 2026 following public hearings.
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 89
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.
Chevron Corporation (NYSE:CVX) announced on December 4 that its capital expenditure for FY2026 will be between $18 billion and $19 billion, at the lower end of its annual CapEx guidance of $18 – 21 billion through 2030. Moreover, capital spending for affiliate companies is forecasted to be between $1.3 – $1.7 billion.
With crude prices near their lowest since 2021, Chevron Corporation (NYSE:CVX) is focusing on profits and outlined a plan last month to grow its free cash flow by over 10% annually through 2030 and grow production, while further reducing costs and capital expenditure. The company plans to cut $3 billion to $4 billion in costs by the end of next year, up by $1 billion from the previous target. Chevron expects its capital expenditure and dividend breakeven to be below $50 per barrel Brent through 2030.
In other news, it was reported on December 1 that HSBC has upgraded Chevron Corporation (NYSE:CVX) from ‘Hold’ to ‘Buy’, while assigning it a price target of $169. The target represents an upside potential of over 13%, as of the writing of this piece.
Chevron Corporation (NYSE:CVX) was recently included in our list of the 15 Long Term Stocks to Buy According to Reddit.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 93
Topping our list of the Best Energy Stocks for a Retirement Portfolio is Exxon Mobil Corporation (NYSE:XOM), one of the largest integrated fuels, lubricants, and chemical companies in the world.
Exxon Mobil Corporation (NYSE:XOM) received a boost on December 8 when BNPP analyst Lucas Herrmann upgraded the stock from ‘Underperform’ to ‘Neutral’, while giving it a price target of $114.
Earlier on December 1, UBS assumed coverage of Exxon Mobil Corporation (NYSE:XOM) with a ‘Buy’ rating and a price target of $145. According to the analyst, the stock’s appreciation is driven by the positive earnings revisions and higher-than-expected shareholder returns. Moreover, UBS highlighted the role of the company’s Energy Products, Chemical Products, and Specialty Products segments as good contributors to its free cash flow.
Exxon Mobil Corporation (NYSE:XOM) generated free cash flow of $6.3 billion in the third quarter, with shareholder returns of $9.4 billion, including $4.2 billion of dividends and $5.1 billion of share repurchases. The oil major also increased its quarterly dividend by 4% to $1.03 per share, marking its 43rd year of dividend growth.
As of the writing of this piece, Exxon Mobil Corporation (NYSE:XOM) boasts a robust annual dividend yield of 3.55%.
While we acknowledge the potential of XOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XOM and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best Renewable Energy Dividend Stocks to Buy Now and 14 Best Utility Dividend Stocks to Buy Now.
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