Energy is vital to the modern world, but oil is still a volatile commodity. Oil prices have come under pressure of late, which has, in turn, resulted in weakening prices for oil-related stocks.
That, however, could be a buying opportunity for long-term investors since oil prices have always rebounded eventually. Three solid high-yield selections for investors with $1,000 or more to invest today are Chevron (CVX 2.47%), TotalEnergies (TTE +0.00%), and Enbridge (ENB 0.90%). Here's why you might like each of these oil stocks.
1. Chevron is a solid through-the-cycle energy pick
Just about anytime someone is looking to buy an oil stock, they should at least consider Chevron in the mix. The company is one of the largest integrated energy majors, which means that its business spans the upstream (oil and natural gas production), the midstream (pipelines), and all the way to the downstream (chemicals and refining). Each segment of the energy sector operates a little differently, and having exposure to all three helps to soften the impact of commodity price volatility.
NYSE: CVX
Key Data Points
On top of that, Chevron also has a long history of operating with a strong balance sheet. It ended the first quarter of 2025 with a debt-to-equity ratio of 0.2 or so, which is low for any company.
It gives management the leeway to take on debt so it can continue to support its business and the dividend through industry downturns. Chevron's low leverage hints that it is more than ready for the current industry malaise.
There are some company-specific issues buffeting the stock today, including a difficult merger and operations in Venezuela that have become a political headache. But Chevron and its 5% yield should be resilient to the headwinds.
Image source: Getty Images.
2. TotalEnergies is hedging its bets for a cleaner future
Next up is TotalEnergies, which is a French integrated energy giant. It shares some of the same diversification traits as Chevron, but there's one important difference.
TotalEnergies has long been investing in clean energy. In 2020, it made a public commitment to the space, along with peers BP and Shell. Unlike those two European competitors, however, TotalEnergies didn't cut its dividend when it made the commitment.
Also unlike BP and Shell, it has not walked back its commitment. If anything, it has sped up its pace of investment, with the segment growing 17% in 2024.
NYSE: TTE
Key Data Points
The attraction here is fairly simple. If you want oil exposure but are worried about the growth of clean energy over time, TotalEnergies is basically a hedged bet.
Oil and natural gas are still the main drivers of the business, which helps explain why the stock is down and the dividend yield is up to 6.5%. Thus it is probably worth a close look for oil investors seeking a high-yield option.
But the clean energy segment provides added diversification and an avenue for long-term growth that peers just don't have in their portfolios to the same degree. For more-conservative investors, that may make it the better buy.
3. Enbridge lets you sidestep oil prices
Enbridge is not an integrated energy company, it's a midstream company. Thus, it owns the pipelines, storage, processing, and transportation assets that help to move oil and natural gas around the world.
It largely charges fees for the use of its assets, resulting in a fairly consistent income stream through the entire energy cycle. Around 50% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) come from oil pipelines and 25% from natural gas pipelines. The 5.8% yield is very reliable.
NYSE: ENB
Key Data Points
Like TotalEnergies, however, Enbridge is shifting its business with the world around it, which is a stated goal of the company. In this case, the remaining 25% of EBITDA is tied to natural gas utilities and clean energy investments.
One is regulated and the other is driven by long-term contracts, so both provide reliable cash flows just like the pipeline operations. In other words, if you want energy exposure but want to minimize commodity risk, Enbridge has you well covered.
Oil is vital to the world, and you should probably have exposure
The world is in an energy transition, but oil remains one of the most important sources of power. Natural gas is just as important. Chevron gives you direct exposure to both in a single diversified and high yield investment. TotalEnergies adds in clean energy and provides an even higher yield. Enbridge shifts the dynamic, with a fee-based business that gives energy exposure without all the commodity risk.
One of these high-yield oil stocks should interest you if you are looking to put some money to work in the energy patch today.
