Investing in Oil: Three High-Yield Stocks for Serious Investors

Energy is fundamental to modern life, but the oil market is notoriously volatile. Recently, oil prices have come under pressure, leading to a dip in oil-related stock prices. For savvy long-term investors, this slump could present a buying opportunity, particularly since oil prices have historically rebounded over time. Notably, here are three high-yield selections for investors with $1,000 or more to invest today: Chevron (NYSE: CVX), TotalEnergies (NYSE: TTE), and Enbridge (NYSE: ENB). Here’s a breakdown of why each of these stocks may be worth considering.

1. Chevron: A Resilient, All-in-One Energy Pick

When it comes to selecting an oil stock, Chevron should invariably be on your radar. As one of the largest integrated energy companies globally, Chevron operates across the upstream, midstream, and downstream sectors. This operational diversification helps mitigate the impact of commodity price swings, a crucial factor given the current market environment.

Moreover, Chevron boasts excellent financial health, ending the first quarter of 2025 with a debt-to-equity ratio of approximately 0.2. This low leverage indicates that the company is well-positioned to navigate industry downturns and support its dividends, which currently yield around 5%. Although Chevron faces its share of challenges—including a complicated merger and operational issues in Venezuela—it remains resilient amidst these headwinds. Investors can look to Chevron as a dependable choice during this bumpy period in the oil market.

2. TotalEnergies: Balancing Traditional Oil with Cleaner Alternatives

Next, let’s take a closer look at TotalEnergies, a French energy giant that shares a diversified business model similar to Chevron, with a crucial distinction. TotalEnergies has been proactive in integrating clean energy into its portfolio. Unlike broad competitors like BP and Shell, TotalEnergies didn’t slash its dividend when it announced its commitment to the clean energy space in 2020. Instead, it has accelerated its investments, with its clean energy segment realizing a substantial 17% growth in 2024.

This unique positioning makes TotalEnergies a compelling choice for energy investors concerned about the future of fossil fuels. The company currently provides a dividend yield of about 6.5%, which is attractive for income-seeking investors. While oil and natural gas remain the main profit drivers, its foray into clean energy offers an additional layer of protection and growth potential that many of its peers lack.

3. Enbridge: A Midstream Alternative to Oil Price Risks

Unlike the integrated energy giants above, Enbridge operates as a midstream company, focusing on the transportation and storage of oil and natural gas. Its business model, based largely on fee structures, allows for a consistently stable revenue stream through various phases of the energy cycle. Approximately 50% of its EBITDA is derived from oil pipelines, while 25% comes from natural gas pipelines.

Enbridge also incorporates elements of diversification, as its remaining 25% of EBITDA comes from regulated utility operations and clean energy investments. This strategic orientation minimizes the risks associated with commodity prices, making it an appealing option for investors looking to hedge against volatility while still acquiring energy exposure. Currently, Enbridge delivers a reliable dividend yield of around 5.8%.

Conclusion: The Importance of Oil in a Transitioning Energy Landscape

As the global community transitions toward cleaner energy, oil remains a fundamental power source. Natural gas holds equal significance alongside oil. Each of the three stocks analyzed offers unique advantages: Chevron provides direct exposure to both oil and natural gas in a highly diversified format; TotalEnergies offers a hedge against declining fossil fuel relevance, paired with an enticing yield; and Enbridge presents a stable cash flow environment with minimized commodity risks.

For serious investors considering energy investments, one of these high-yield oil stocks may provide excellent opportunities in the current market landscape.