3 Ultra-High-Yield Energy Stocks to Hold Forever
Investors can find stocks with much higher yields in the energy sector without taking on too much risk. Enbridge, TotalEnergies, and Brookfield Renewable Partners are attractive ultra-high-yield energy stocks with yields of up to 5%.
Intelligence analysis by Llama
Investors seeking higher yields in the energy sector can consider Enbridge, TotalEnergies, and Brookfield Renewable Partners, which offer yields of up to 5% and are less volatile than the S&P 500 index.
Imagine you have a big basket of energy stocks, but you want to make sure you have some clean energy in there too. Enbridge, TotalEnergies, and Brookfield Renewable Partners are like three special eggs in that basket that can help you get a good mix of income and energy diversification.
Analysis
A Cleaner and Higher Yield
Several years ago, I made a conscious decision to increase my exposure to clean energy because it is the fastest-growing part of the energy industry. But I was also keenly aware that an all-of-the-above strategy was likely to be the long-term winner in the energy sector. I bought Enbridge over higher-yielding but pipeline-focused Enterprise Products Partners. I sold energy industry giant ExxonMobil and switched to TotalEnergies, a more diverse company with a higher yield. And I bought Brookfield Renewable Partners with proceeds from the sale of a traditional regulated utility. While I like each one individually, I believe the three together give me a healthy mix of income, energy diversification, and commodity exposure. And I have no plan to sell any of them anytime soon. You may find that you want to add these three high-yield energy stocks to your portfolio, too.
Why Enbridge is a Good Choice
Enbridge is built to be boring. It offers an attractive 5% yield backed by 31 annual dividend increases (in Canadian dollars). The core of the operation is the company's North American oil and natural gas pipelines portfolio. It charges fees for the use of these vital energy assets, so commodity price volatility isn't a big issue. Demand for energy, which is pretty much always strong, is more important. On top of that, the company owns a portfolio of regulated natural gas utilities and a small collection of clean energy assets. Like the midstream assets it owns, these energy investments produce reliable cash flows. However, the key to the company's unique asset mix is its long-term goal of providing the world with the energy it needs. It allows you to gain exposure to the least volatile part of the energy sector (the midstream) while also providing exposure to the shifting global energy landscape (increasing demand for clean energy). A good mix when you add in that high yield and impressive dividend history.
Why TotalEnergies is a Good Choice
TotalEnergies is an integrated energy giant with a globally diversified portfolio. It provides exposure to the entire energy value chain, including production (upstream), transportation (midstream), and chemicals and refining (downstream). That diversification helps to soften the often large swings in energy prices. But you still have direct exposure to oil and natural gas if that is what you want. The yield is 5%, though U.S. investors have to pay French taxes, some of which can be claimed back come tax time. However, the really interesting part of TotalEnergies' story is its commitment to electricity and clean energy. It is basically the only independent integrated energy company that has made a material investment in the space, which accounted for roughly 12% of its business in 2025. If you want direct energy exposure, but also like the idea of a clean energy hedge, TotalEnergies is probably the best integrated energy option you have.
Key points
- Enbridge offers an attractive 5% yield backed by 31 annual dividend increases.
- TotalEnergies is an integrated energy giant with a globally diversified portfolio and a commitment to clean energy.
- Brookfield Renewable Partners is a one-stop shop for investors seeking clean energy exposure with an attractive 4.8% yield and a 5% distribution growth rate over the past decade.
- The energy sector is subject to volatility and price swings, which could impact the performance of these stocks.
- The transition to clean energy may take longer than expected, which could affect the yields and investment opportunities in the sector.
If investors add these three high-yield energy stocks to their portfolios, they may see increased returns and a more diversified energy mix. Additionally, the growing demand for clean energy could lead to higher yields and more attractive investment opportunities in the future.
However, investors should be aware that the energy sector is subject to volatility and price swings, which could impact the performance of these stocks. Additionally, the transition to clean energy may take longer than expected, which could affect the yields and investment opportunities in the sector.
