10 No-Brainer Energy Stocks to Buy Right Now

When considering the energy sector, it’s crucial to keep risk at the forefront of your thoughts. This is due to the fact that oil and natural gas prices can fluctuate significantly, greatly impacting the financial success of numerous energy-related stocks. However, it’s essential to understand the intricacies before making a purchase decision on any stock.

Here’s a list of 10 straightforward energy stocks that you may consider purchasing at the moment, along with an analysis of who might find these investments appealing:

These recommendations cater to various investment styles, making it easier for diverse types of investors to identify suitable options among them.

1. Punt with an energy ETF

If your goal is a wide range of involvement in the energy industry, choosing individual stocks might not be the ideal choice for you. Instead, consider opting for an Exchange-Traded Fund (ETF), which offers a broad spectrum of exposure to the whole sector with just one straightforward purchase decision. This approach will provide more diversification and potentially less risk compared to selecting specific stocks.

Two viable choices are the Energy Select Sector SPDR Fund (XLE) and the Vanguard Energy Index Fund ETF (VDE). They both have comparable expense ratios and returns, making either one a suitable pick for an investor seeking diversified exposure in the energy sector.

2. ExxonMobil is the industry giant

Speaking of which, if you’re considering investing in a single company that spans broadly across the energy market, ExxonMobil (XOM) could be an excellent choice. This industry titan is known as an integrated energy company, meaning it operates throughout the entire energy production process. This diversification can help to mitigate fluctuations in energy prices over time.

Additionally, the organization boasts a robust financial structure, allowing it to sustain both its operations and dividends during challenging times. Remarkably, the company’s dividend has grown yearly for an impressive 43 years, with a present yield of approximately 3.6%.

3. Chevron is similar, but higher yielding

Chevron, represented by CVX, is often considered Exxon’s main rival, primarily due to both being American corporations. However, it’s important to note that Chevron is a relatively smaller entity compared to Exxon, but still holds significant weight with a market capitalization approximately $260 billion (Exxon’s market cap stands at around $480 billion).

Chevron boasts a robust financial structure, yet its dividend return is quite enticing, hovering around 4.7%. Currently, Chevron faces some internal complications such as a challenging merger and operations in countries with uncertain politics. Nevertheless, these hurdles are unlikely to significantly impact it in the long run. Investors primarily interested in high yields might find Chevron an appealing choice.

4. TotalEnergies weaves in a new business line

As an observer, I find that TotalEnergies (TTE) completes the roster of significant integrated energy conglomerates. This French titan shares similarities with giants like Exxon and Chevron in terms of its extensive and varied business operations. Yet, much like its European contemporaries, it holds a greater amount of debt and liquid cash as compared to its American counterparts. Despite its financial robustness, possessing more debt and cash doesn’t equate to simply having minimal liabilities.

In essence, what sets TotalEnergies apart is its innovative strategy: It channels profits from fossil fuel ventures towards renewable energy and electric businesses. Consequently, it can be considered as an energy stock with a green, forward-thinking edge. This unique characteristic makes TotalEnergies, boasting a substantial 6.3% dividend yield, an alluring choice for investors who see clean energy as a promising long-term investment platform.

Keep in mind that American investors are required to pay taxes in France on their dividend earnings. Some of this tax may potentially be reclaimed by April 15th.

5. Occidental Petroleum wants to play with the big boys

OXY), which has a market cap on the lower end, approximately $40 billion. This company offers a dividend yield of about 2.3%. However, compared to other U.S. heavyweights like Exxon and Chevron, neither its market value nor its dividend yield are particularly outstanding.

Yet, Occidental aims for significant expansion in its energy business through acquisitions. Being comparatively smaller, growth opportunities are more accessible since lesser substantial transactions can have a considerable impact. Notably, Warren Buffett assisted Occidental in outbidding Chevron in a recent deal, and Berkshire Hathaway continues to hold a substantial stake in the company’s stock. It is worth mentioning that Buffett also owns Chevron, as well.

6. Devon Energy is focused on oil and the United States

Some investors, on the other hand, might not be interested in a diversified energy investment. Instead, they might have a firm belief about the future trend of energy prices and seek a more direct involvement in the fluctuations of oil and natural gas. If this description resonates with you, you may want to explore Devon Energy (NYSE: DVN) as an option.

In simpler terms, Devon is a significant oil driller operating on U.S. land, with substantial involvement in some of the nation’s key energy-producing areas. Lately, the company has been concentrating on increasing its size by making strategic acquisitions, which not only boosts its overall scale but also extends its geographical influence.

The dividend yield stands roughly at 3%. However, the more significant aspect to consider is how commodity prices might influence the company’s overall financial outcomes.

7. ConocoPhillips takes on the world

As an energy enthusiast seeking geographic diversity in my investment, I’d highly recommend giving ConocoPhillips (NYSE: COP) a glance! This company is primarily engaged in exploration and production, but its extensive portfolio reaches beyond the U.S., encompassing a total of 15 countries worldwide. From onshore to offshore, ConocoPhillips’ operations span a broad spectrum, offering a well-diversified energy investment opportunity.

The stock offers a return of 2.3%, and it’s worth noting that this company has consistently upheld its dividend payments during periods of prosperity and hardship. However, it’s important to keep in mind that the dividend amount may vary based on fluctuations in energy prices.

8. Enterprise Products Partners sidesteps energy volatility

To date, the list has been comprised of companies facing direct exposure to energy price fluctuations. However, it’s important to note a specific sector within energy that largely escapes such vulnerability – the midstream sector. Companies such as master limited partnership (MLP) Enterprise Products Partners (NYSE: EPD), for example, are part of this segment. They own and manage the global infrastructure essential for transporting oil and natural gas, typically earning revenue by charging fees for utilizing their assets.

This enterprise ranks among the leading companies in North America and boasts a robust financial structure, an extensive distribution network, and an attractive 6.9% dividend yield. The reason it stands out is that this yield has been increased every year for the past 26 years, making it an appealing choice for investors prioritizing income. However, it’s worth noting that most of the return you can expect from this investment will come from its yield.

9. Enbridge brings in the clean (energy)

As a passionate investor, I can’t help but be excited about Enbridge (NYSE: ENB) – another North American titan in the midstream sector! Just like Enterprise, Enbridge owns crucial energy infrastructure such as pipelines that play a pivotal role in global energy markets, irrespective of the fluctuating energy prices. What sets it apart is its impressive 6% dividend yield, making it an attractive choice for income-focused investors like myself.

To clarify further, it’s important for investors to note two more points regarding Enbridge. Firstly, since Enbridge is a Canadian company, U.S. investors are subject to paying Canadian taxes on the dividends they receive. Secondly, due to fluctuations in exchange rates, the dividends they receive may also vary.

Moving on, it’s significant to note that, similar to TotalEnergies, Enbridge is also venturing into clean energy investments. If this sustainability shift appeals to you, you might find Enbridge a more suitable choice compared to Enterprise.

10. Go all in with an oil ETF

This collection presents several methods for investing in oil and gas stock markets, including diverse energy firms, specialized drilling companies, and middle-tier choices that shield from energy price fluctuations. However, what if you’re only interested in tracking energy prices themselves?

You may find it beneficial to explore the United States Oil Fund LP (NYSEMKT: USO). This exchange-traded fund is specifically structured to mirror the day-to-day fluctuations in the price of light, sweet crude oil. Please note that this isn’t a direct investment in oil; rather, its goal is to follow the movements in oil prices. If your interest lies in tracking oil price changes, this could be a suitable, albeit risky, choice for you.

Lots of energy options for lots of energy investors

The fact is, when it comes to investing in the energy sector, there isn’t a single correct approach. It largely depends on individual tastes, and even then, there are subtle differences to take into account. For instance, some people might consider Exxon and Chevron as similar businesses, while others may view Chevron’s short-term challenges as an opportunity for value.

This list encompasses ten diverse investment choices, although certain distinctions may be faint. If you’re searching for an energy stock to invest in at the moment, chances are, you’ll find a suitable option within this collection tailored to your unique circumstances.

2025-07-24 16:11