Top High-Yield Energy Stocks to Buy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Enbridge's Stable Income: Enbridge (ENB) offers a forward dividend yield of 5.6% and has increased its dividend for 30 consecutive years; despite a downgrade from JP Morgan due to sluggish crude oil growth, its strong cash flow ensures continued dividend payments.
- Energy Transfer's Growth Potential: Energy Transfer (ET) attracts income investors with a 7.3% distribution yield and has signed natural gas supply agreements with multiple data center operators over the past year, benefiting from the booming construction of AI data centers.
- Enterprise Products Partners' Income Machine: Enterprise Products Partners (EPD) provides a distribution yield of approximately 6.3% and has increased distributions for 27 consecutive years; while only modest growth is expected in 2026, management projects a 10% growth in EBITDA and cash flow for 2027.
- Optimistic Industry Outlook: With ongoing demand for energy infrastructure, all three companies are actively expanding their operations, particularly in renewable energy and AI-related projects, indicating strong long-term growth potential.
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Analyst Views on ENB
Wall Street analysts forecast ENB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ENB is 49.75 USD with a low forecast of 44.63 USD and a high forecast of 51.83 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 49.330
Low
44.63
Averages
49.75
High
51.83
Current: 49.330
Low
44.63
Averages
49.75
High
51.83
About ENB
Enbridge Inc. is an energy transportation and distribution company. The Company's segments include Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, and Renewable Power Generation. Liquids Pipelines consists of pipelines and terminals in Canada and United States that transport and export various grades of crude oil and other liquid hydrocarbons, including the Mainline System, Regional Oil Sands System, Gulf Coast and Mid-Continent, and Other. Gas Transmission consists of its investments in natural gas pipelines and gathering and processing facilities in Canada and United States, including United States Gas Transmission, Canadian Gas Transmission, United States Midstream, and Other. Gas Distribution and Storage consists of its rate-regulated natural gas utility operations in Canada and United States. Renewable Power Generation consists primarily of investments in wind and solar assets, as well as equity interests in geothermal power and power transmission assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Top High-Yield Energy Stocks to Buy
- Enbridge's Stable Income: Enbridge (ENB) offers a forward dividend yield of 5.6% and has increased its dividend for 30 consecutive years; despite a downgrade from JP Morgan due to sluggish crude oil growth, its strong cash flow ensures continued dividend payments.
- Energy Transfer's Growth Potential: Energy Transfer (ET) attracts income investors with a 7.3% distribution yield and has signed natural gas supply agreements with multiple data center operators over the past year, benefiting from the booming construction of AI data centers.
- Enterprise Products Partners' Income Machine: Enterprise Products Partners (EPD) provides a distribution yield of approximately 6.3% and has increased distributions for 27 consecutive years; while only modest growth is expected in 2026, management projects a 10% growth in EBITDA and cash flow for 2027.
- Optimistic Industry Outlook: With ongoing demand for energy infrastructure, all three companies are actively expanding their operations, particularly in renewable energy and AI-related projects, indicating strong long-term growth potential.
See More
High-Yield Energy Stock Investment Recommendations
- Stable Midstream Operations: Enterprise Products Partners (EPD) and Enbridge (ENB) offer dividend yields of 6.3% and 5.6% respectively, demonstrating strong financial performance even in low oil price environments due to their stable revenue models as midstream companies.
- Robust Dividend History: Enbridge has increased its dividend for 30 consecutive years, while Enterprise Products Partners has done so for 27 years, indicating the resilience and attractiveness of their business models, particularly for conservative income investors.
- Integrated Energy Company Transition: TotalEnergies (TTE), with a current dividend yield of 5.3%, is strategically transitioning towards clean energy, utilizing oil profits to adapt to shifting global energy demands, showcasing its forward-looking strategic positioning.
- High-Yield Investment Opportunities: Despite the volatility in the energy market, the high yields offered by Enterprise and Enbridge make them ideal for conservative investors, while TotalEnergies provides direct energy exposure for those seeking higher-risk returns.
See More
High-Yield Energy Stock Investment Recommendations
- Stable Income Source: Enterprise Products Partners (EPD) and Enbridge (ENB), as midstream companies, offer high dividend yields of 6.3% and 5.6% respectively, providing reliable passive income for conservative investors despite energy price volatility, as their revenues are primarily driven by stable energy demand.
- Long-Term Dividend Growth: Enbridge has increased its dividend annually for three decades, while Enterprise has raised its distribution for 27 years, demonstrating the strength and stability of their business models, which attract investors seeking long-term returns.
- Diversified Energy Strategy: TotalEnergies (TTE), as an integrated energy company, is actively transitioning to clean energy, providing a stable 5.3% dividend yield despite the risks of commodity price fluctuations, especially as other European peers have cut their dividends.
- Investment Advice and Risks: While Enterprise Products Partners is viewed as a low-risk, high-yield option, it was not included in the current top ten recommended stocks by the analyst team, indicating that investors should be aware of potential market opportunities and risks while pursuing yield.
See More
Top High-Yield Midstream Energy Stocks for 2026
- Midstream Business Advantage: Midstream energy companies generate revenue primarily through fees for the use of their infrastructure, such as pipelines and storage facilities, ensuring high transaction volumes even during low oil prices, which provides stable income for investors.
- Enbridge's Diversification: Enbridge offers a dividend yield of 5.6%, the lowest among the three, but its diversified portfolio includes oil and gas pipelines and clean energy, with a track record of increasing dividends for 30 consecutive years, indicating stability and long-term growth potential.
- Enterprise Products Partners' Steady Growth: With a dividend yield of 6.3%, Enterprise focuses solely on midstream oil and gas assets and has increased its dividends annually for 27 years, showcasing the benefits of conservative management, making it suitable for investors seeking reliable income.
- Energy Transfer's High Risk-High Reward: Energy Transfer boasts the highest dividend yield at 7.1%, although it cut its distribution in half in 2020 to strengthen its balance sheet, it has since recovered and is growing, with management projecting steady growth of 3% to 5% annually, appealing to more aggressive investors.
See More
High-Yield Midstream Energy Investment Opportunities for 2026
- Midstream Business Advantage: Midstream energy companies generate revenue primarily through fees for the use of their infrastructure assets, such as pipelines and storage facilities, ensuring high volumes even when oil prices are low, which provides stable income streams.
- Enbridge's Diversified Portfolio: With a yield of 5.6%, Enbridge offers the lowest yield among the three but boasts a diversified portfolio that includes oil and gas pipelines and clean energy, having increased its dividend for 30 consecutive years, reflecting strong financial management.
- Enterprise Products Partners' Steady Performance: This master limited partnership (MLP) has a yield of 6.3% and has increased its dividend annually for 27 years, focusing solely on oil and gas midstream assets, showcasing a conservative management style that appeals to income-seeking investors.
- Energy Transfer's High-Yield Potential: Energy Transfer offers the highest yield at 7.1%, having cut its distribution in half in 2020 but now seeing growth above pre-cut levels, with management projecting steady annual growth of 3% to 5%, making it suitable for more aggressive investors.
See More
Enbridge: A High-Yield Stock for Financial Stability
- Stable Dividend Yield: Enbridge boasts a dividend yield of 5.7%, significantly above the market average, making it an attractive option for dividend investors seeking financial stability.
- Consistent Dividend Growth: The company has a 30-year history of annual dividend increases, with expected distributable cash flow growth of 3% in 2026 and up to 5% thereafter, providing investors with predictable returns.
- Wealth Accumulation through Reinvestment: By reinvesting dividends, Enbridge investors can automatically purchase more shares during market downturns, significantly enhancing wealth accumulation over time and altering their financial trajectory.
- Advantage in Market Volatility: During bear markets, Enbridge's reliable dividend acts as a stabilizing force for investors, allowing them to maintain rational investment decisions amidst emotional turmoil, further solidifying its appeal as a high-yield stock.
See More
Top High-Yield Energy Stocks to Buy
- Enbridge's Stable Income: Enbridge (ENB) offers a forward dividend yield of 5.6% and has increased its dividend for 30 consecutive years; despite a downgrade from JP Morgan due to sluggish crude oil growth, its strong cash flow ensures continued dividend payments.
- Energy Transfer's Growth Potential: Energy Transfer (ET) attracts income investors with a 7.3% distribution yield and has signed natural gas supply agreements with multiple data center operators over the past year, benefiting from the booming construction of AI data centers.
- Enterprise Products Partners' Income Machine: Enterprise Products Partners (EPD) provides a distribution yield of approximately 6.3% and has increased distributions for 27 consecutive years; while only modest growth is expected in 2026, management projects a 10% growth in EBITDA and cash flow for 2027.
- Optimistic Industry Outlook: With ongoing demand for energy infrastructure, all three companies are actively expanding their operations, particularly in renewable energy and AI-related projects, indicating strong long-term growth potential.
See More
High-Yield Energy Stock Investment Recommendations
- Stable Midstream Operations: Enterprise Products Partners (EPD) and Enbridge (ENB) offer dividend yields of 6.3% and 5.6% respectively, demonstrating strong financial performance even in low oil price environments due to their stable revenue models as midstream companies.
- Robust Dividend History: Enbridge has increased its dividend for 30 consecutive years, while Enterprise Products Partners has done so for 27 years, indicating the resilience and attractiveness of their business models, particularly for conservative income investors.
- Integrated Energy Company Transition: TotalEnergies (TTE), with a current dividend yield of 5.3%, is strategically transitioning towards clean energy, utilizing oil profits to adapt to shifting global energy demands, showcasing its forward-looking strategic positioning.
- High-Yield Investment Opportunities: Despite the volatility in the energy market, the high yields offered by Enterprise and Enbridge make them ideal for conservative investors, while TotalEnergies provides direct energy exposure for those seeking higher-risk returns.
See More
High-Yield Energy Stock Investment Recommendations
- Stable Income Source: Enterprise Products Partners (EPD) and Enbridge (ENB), as midstream companies, offer high dividend yields of 6.3% and 5.6% respectively, providing reliable passive income for conservative investors despite energy price volatility, as their revenues are primarily driven by stable energy demand.
- Long-Term Dividend Growth: Enbridge has increased its dividend annually for three decades, while Enterprise has raised its distribution for 27 years, demonstrating the strength and stability of their business models, which attract investors seeking long-term returns.
- Diversified Energy Strategy: TotalEnergies (TTE), as an integrated energy company, is actively transitioning to clean energy, providing a stable 5.3% dividend yield despite the risks of commodity price fluctuations, especially as other European peers have cut their dividends.
- Investment Advice and Risks: While Enterprise Products Partners is viewed as a low-risk, high-yield option, it was not included in the current top ten recommended stocks by the analyst team, indicating that investors should be aware of potential market opportunities and risks while pursuing yield.
See More
Top High-Yield Midstream Energy Stocks for 2026
- Midstream Business Advantage: Midstream energy companies generate revenue primarily through fees for the use of their infrastructure, such as pipelines and storage facilities, ensuring high transaction volumes even during low oil prices, which provides stable income for investors.
- Enbridge's Diversification: Enbridge offers a dividend yield of 5.6%, the lowest among the three, but its diversified portfolio includes oil and gas pipelines and clean energy, with a track record of increasing dividends for 30 consecutive years, indicating stability and long-term growth potential.
- Enterprise Products Partners' Steady Growth: With a dividend yield of 6.3%, Enterprise focuses solely on midstream oil and gas assets and has increased its dividends annually for 27 years, showcasing the benefits of conservative management, making it suitable for investors seeking reliable income.
- Energy Transfer's High Risk-High Reward: Energy Transfer boasts the highest dividend yield at 7.1%, although it cut its distribution in half in 2020 to strengthen its balance sheet, it has since recovered and is growing, with management projecting steady growth of 3% to 5% annually, appealing to more aggressive investors.
See More
High-Yield Midstream Energy Investment Opportunities for 2026
- Midstream Business Advantage: Midstream energy companies generate revenue primarily through fees for the use of their infrastructure assets, such as pipelines and storage facilities, ensuring high volumes even when oil prices are low, which provides stable income streams.
- Enbridge's Diversified Portfolio: With a yield of 5.6%, Enbridge offers the lowest yield among the three but boasts a diversified portfolio that includes oil and gas pipelines and clean energy, having increased its dividend for 30 consecutive years, reflecting strong financial management.
- Enterprise Products Partners' Steady Performance: This master limited partnership (MLP) has a yield of 6.3% and has increased its dividend annually for 27 years, focusing solely on oil and gas midstream assets, showcasing a conservative management style that appeals to income-seeking investors.
- Energy Transfer's High-Yield Potential: Energy Transfer offers the highest yield at 7.1%, having cut its distribution in half in 2020 but now seeing growth above pre-cut levels, with management projecting steady annual growth of 3% to 5%, making it suitable for more aggressive investors.
See More
Enbridge: A High-Yield Stock for Financial Stability
- Stable Dividend Yield: Enbridge boasts a dividend yield of 5.7%, significantly above the market average, making it an attractive option for dividend investors seeking financial stability.
- Consistent Dividend Growth: The company has a 30-year history of annual dividend increases, with expected distributable cash flow growth of 3% in 2026 and up to 5% thereafter, providing investors with predictable returns.
- Wealth Accumulation through Reinvestment: By reinvesting dividends, Enbridge investors can automatically purchase more shares during market downturns, significantly enhancing wealth accumulation over time and altering their financial trajectory.
- Advantage in Market Volatility: During bear markets, Enbridge's reliable dividend acts as a stabilizing force for investors, allowing them to maintain rational investment decisions amidst emotional turmoil, further solidifying its appeal as a high-yield stock.
See More
