Top Oil Stocks With Great Dividends: What Should I Invest In Right Now?

Yahoo

14-06-2025

Key Points
Enterprise Products Partners pays an attractive distribution and has a highly resilient business.
Energy Transfer offers an especially juicy yield and has AI-related growth opportunities.
Enbridge is a diversified energy company that has increased its dividend for 30 consecutive years.
10 stocks we like better than Enbridge ›
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Oil stocks have been longtime favorites for investors seeking income. With lower oil prices causing many oil stocks to decline in recent months, their dividend yields have risen.
A user on Reddit recently asked which oil stocks with attractive dividends are the best picks right now. There are plenty of good answers to that question, but I think three oil stocks especially stand out.
1. Enterprise Products Partners
I think the best oil stocks for income investors right now can be found in the midstream industry. And my favorite midstream stock is Enterprise Products Partners (NYSE: EPD). The limited partnership (LP) operates more than 50,000 miles of pipeline that transports crude oil, natural gas, natural gas liquids (NGLs), petrochemicals, and other refined products.
Enterprise Products Partners' forward distribution yield is 6.67%. A high yield can sometimes be a warning sign about underlying business problems. However, that's not the case with this stock. Enterprise has increased its distribution for 26 consecutive years and should be in a great position to keep that streak going.
Lower oil prices can cause lower revenue and profits for major oil producers such as Chevron and ExxonMobil. However, midstream leaders such as Enterprise Products Partners charge the same amount to transport liquids through their pipelines no matter what commodity costs are.
Enterprise stands above the pack in its industry, in my view, because of its remarkable resilience. The LP has delivered double-digit percentage returns on invested capital (ROIC) and steady cash flow per unit during some of the most difficult periods for the oil and gas industry without missing a beat.
2. Energy Transfer
Energy Transfer (NYSE: ET) is another midstream stock that I really like. Like Enterprise Products Partners, Energy Transfer is an LP. It operates an even more extensive network of pipelines spanning over 130,000 miles.