Investing in Energy Stocks

By Matthew DiLallo – Updated Oct 7, 2025 at 2:19 PM | Fact-checked by Frank Bass

Key Points

Brookfield Renewable offers steady cash flows and around 10% annual FFO growth through 2029.
ConocoPhillips focuses on dividend growth, targeting top tier S&P 500 rates.
Chevron plans aggressive stock buybacks and cash flow increase post-acquisitions.

Energy stocks are important for investors to understand because the energy sector is vital to the global economy. It produces and supplies the fuels and electricity needed to keep the economy humming.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Brookfield Renewable (NYSE:BEPC)	$7.0 billion	3.77%	Independent Power and Renewable Electricity Producers
Enbridge (NYSE:ENB)	$104.0 billion	5.60%	Oil, Gas and Consumable Fuels
ConocoPhillips (NYSE:COP)	$109.2 billion	3.57%	Oil, Gas and Consumable Fuels
Chevron (NYSE:CVX)	$318.5 billion	4.35%	Oil, Gas and Consumable Fuels
NextEra Energy (NYSE:NEE)	$170.6 billion	2.67%	Electric Utilities

Data as of Oct 23, 2025.

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NYSE: BEP

Brookfield Renewable Partners

Today's Change

(0.99%) $0.28

Current Price

$28.61

Key Data Points

Market Cap

$8B

Day's Range

$28.40 - $28.74

52wk Range

$19.29 - $29.25

Volume

255K

Avg Vol

536K

Gross Margin

19.79%

Dividend Yield

0.05%

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NYSE: COP

ConocoPhillips

Today's Change

(3.06%) $2.67

Current Price

$90.08

Key Data Points

Market Cap

$109B

Day's Range

$89.15 - $90.99

52wk Range

$79.88 - $115.38

Volume

7.8M

Avg Vol

6.6M

Gross Margin

27.83%

Dividend Yield

0.04%

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Commodities

Commodities are undifferentiated products. They are distinct from branded products like cars, watches, or smartphones, which are generally identified by the company that makes them.

3. Chevron

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NYSE: CVX

Chevron

Today's Change

(0.64%) $0.99

Current Price

$156.56

Key Data Points

Market Cap

$319B

Day's Range

$156.12 - $158.59

52wk Range

$132.04 - $168.96

Volume

9.8M

Avg Vol

7.7M

Gross Margin

13.57%

Dividend Yield

0.04%

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NYSE: NEE

NextEra Energy

Today's Change

(0.49%) $0.41

Current Price

$83.25

Key Data Points

Market Cap

$171B

Day's Range

$82.57 - $83.89

52wk Range

$61.72 - $86.74

Volume

5.6M

Avg Vol

9.9M

Gross Margin

36.79%

Dividend Yield

0.03%

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Capital

Capital is any type of asset that you can use to generate future value, including cash and tangible and intangible assets.

5. Enbridge

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NYSE: ENB

Enbridge

Today's Change

(-1.11%) $-0.53

Current Price

$47.18

Key Data Points

Market Cap

$104B

Day's Range

$47.16 - $47.92

52wk Range

$39.73 - $50.54

Volume

3.7M

Avg Vol

3.4M

Gross Margin

32.57%

Dividend Yield

0.06%

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Factors that increase an energy company's durability include:

A low-risk business model: For oil and natural gas producers, this means having diversified operations and low production costs. Meanwhile, energy infrastructure companies should have stable revenue with minimal exposure to fluctuations in volumes or pricing, such as operations supported by regulated rates or long-term fixed-fee contracts.
A strong financial profile: Balance sheet factors to consider are a high investment-grade credit rating, lots of liquidity (cash on hand and borrowing capacity), and minimal near-term debt maturities. In addition, an energy company should have a conservative dividend payout ratio compared to its peers.
Manageable capital spending programs primarily financed with post-dividend free cash flow and prudent use of debt.

Energy companies with these characteristics will be in a better position to withstand the inevitable cyclical downturns. That means they will still be around when market conditions improve. They will also have more flexibility than their weaker peers to capture opportunities that can create value for their investors.

Pros and cons of investing in energy stocks

Investing in energy stocks has its share of benefits and drawbacks. Some of the positives include:

Growth: Energy demand is growing, especially for lower-carbon energy such as natural gas and renewables.
Income: Many energy stocks pay high-yielding and steadily rising dividends, making the sector a good spot to collect passive income.
Inflation hedge: Energy prices tend to rise as inflation increases, making the sector a good hedge against inflation.

On the other hand, the sector has some potential negatives, including:

Volatility: Energy prices can be very volatile, which can significantly impact energy stock prices.
Geopolitical risk: The energy industry is susceptible to geopolitical risks from OPEC policy changes, economic sanctions on oil-producing countries, and shifting government energy policies.
Climate change: Growing climate change concerns could impact demand for fossil fuels in the future.

How to choose the best energy stocks

Here are some important factors to consider when looking for the best energy stocks to buy:

Financial strength: Given the sector's volatility, investors should look for energy companies with the strongest financial profiles.
Lower risk business models: Investors should consider energy stocks with lower risk profiles. For example, integrated energy companies are less risky than small independent producers. Likewise, energy midstream companies are less volatile than companies focused on upstream oil and gas production.
Strong growth profiles: Investors should seek energy companies with visible growth potential from upcoming capital projects or from lower carbon energy demand.

Investing in Energy Stocks

Key Points

Key Data Points

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3. Chevron

Key Data Points

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5. Enbridge

Key Data Points

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Key Data Points

Key Data Points

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What are the best energy stocks to buy?

Are energy stocks risky?

What are the best utility stocks?

Are energy stocks good to own during periods of inflation?

What energy stocks pay the most dividends?

Are renewable energy stocks a good investment?

Renewable energy stocks

Oil and gas stocks

Utility stocks

1. Brookfield Renewable

3. Chevron

5. Enbridge

How to invest in the energy sector

Pros and cons of investing in energy stocks

How to choose the best energy stocks

Related investing topics

Are energy stocks right for you?

FAQ

4. NextEra Energy

Best energy sector stocks to buy in 2025

Key Data Points

2. ConocoPhillips