The world's energy demands continue to rise.
Improving global living standards is driving higher consumption, as is the arrival of artificial intelligence (AI). Data centers are straining the energy grid, and their energy needs may rise tenfold over the next five years alone.
Keeping pace with global energy needs is becoming an increasingly important storyline. There are opportunities for energy companies that can step in and provide the power the world will need over the coming decade and beyond.
Below are three top dividend stocks in the energy industry poised to do precisely that. Consider buying and holding them forever -- their proven dividend track records and long-term growth opportunities bode well for your portfolio.
1. Chevron
Integrated oil and gas giant Chevron (CVX +2.74%) is a stalwart in an industry known for its volatility as oil and gas prices fluctuate. The company's astute management and diversified business operations, spanning exploration, refining, and retail, have helped it navigate difficult times. As a result, Chevron maintains an uninterrupted 37-year streak of dividend increases. Shares yield a generous 4.4% at their current price.
NYSE: CVX
Key Data Points
Chevron has a strong foundation for growing its oil and gas production moving forward. The company owns approximately 1.8 million net acres in the resource-rich Permian region, and recently closed a blockbuster acquisition of Hess, giving it prime exposure to assets off the coast of Guyana, arguably the most significant oil discovery in decades.
Less-carbon-intensive resources, such as natural gas, could contribute more to the energy grid, slowly replacing dirtier sources like coal. If it ever came to it, Chevron's deep pockets would likely allow it to integrate more renewable energy assets into its business. Either way, investors can likely count on Chevron for steady and growing dividends for the foreseeable future.
2. Enbridge
Canada-based Enbridge (ENB 0.77%) plays a crucial role in North America's energy landscape. The company operates a vast pipeline footprint that transports a large chunk of the continent's oil and natural gas, as well as North America's largest gas utility by volume. Additionally, the company has over 7,200 MW of renewable energy production capacity across wind, solar, and geothermal sources.
NYSE: ENB
Key Data Points
North America's economic weight all but ensures the continent's high energy needs for the foreseeable future. In other words, investors probably won't have to worry about Enbridge's business slowing down. Plus, roughly 80% of Enbridge's EBITDA comes from assets with built-in inflation protection, so the company's business should continue to grow, even as costs rise across the economy.
Enbridge's consistency shows in its dividend track record. Management has raised Enbridge's dividend for 28 consecutive years, and is targeting 5% annualized growth beyond 2026. Therefore, investors should have no issues continuing to count on the stock's lofty 5.8% dividend yield.
3. NextEra Energy
Renewable energy is the fastest-growing power source, positioning NextEra Energy (NEE 0.29%) as a no-brainer stock in the global energy scene over the next several decades. NextEra is one of the world's largest producers of renewable energy. It has a total capacity of over 33,000 MW and assets spanning wind, solar, nuclear, natural gas, and energy storage.
NYSE: NEE
Key Data Points
Additionally, the company operates an electric utility serving over 12 million people across Florida, one of America's fastest-growing states, both economically and in population. NextEra Energy has grown on a decades-long ramp-up of clean energy, enabling the company to raise its dividend for 30 consecutive years. The stock currently yields a solid 2.7%.
Experts believe renewable energy could remain the fastest-growing energy source through 2050. That bodes well for NextEra Energy, which has the expertise and size to continue leading the way. The company is investing $75 billion in infrastructure through 2028 alone, laying the groundwork for future growth.
