logo
3 Top Energy Stocks to Buy Without Hesitation in June

3 Top Energy Stocks to Buy Without Hesitation in June

Yahoo3 days ago

Enterprise Products Partners is a reliable income grower with a lofty 6.8% yield.
Oneok has delivered sustainable earnings growth and a stable and steadily rising dividend.
ExxonMobil's big growth plans should reward you.
10 stocks we like better than Enterprise Products Partners ›
The energy industry can be pretty volatile. Take crude oil prices this year, for example. West Texas Intermediate, the primary U.S. benchmark price, has been as high as $80 and as low as $55 a barrel this year. That volatility can make it difficult to confidently invest in the energy sector.
However, a few energy stocks stand out to some of our Fool.com contributors this month as those that you shouldn't hesitate to buy: Enterprise Products Partners (NYSE: EPD), Oneok (NYSE: OKE), and ExxonMobil (NYSE: XOM). Here's why you can confidently add them to your portfolio this June.
Reuben Gregg Brewer (Enterprise Products Partners): When it comes to income investing, boring is usually better. All you want is your dividend check paid on a regular basis. Dividend increases are nice, but smaller reliable increases are probably better than large ones that could put the dividend at risk. And when it comes to the yield, well, higher is better, but only up to a point, since a too-high dividend could end up getting cut. North American midstream giant Enterprise Products Partners passes all of these tests.
For starters, Enterprise has increased its distribution annually for 26 consecutive years. The master limited partnership's normal increase has recently been in the mid-single digits, which is above inflation but not so fast that the distribution is at any risk. That's highlighted by the fact that distributable cash flow covered the distribution by a very strong 1.7 times in 2024. Enterprise also happens to have an investment grade-rated balance sheet, providing a strong foundation for the distribution.
That said, the best part is probably the distribution yield. At roughly 6.8%, Enterprise Products Partners' yield will provide you with much more income than the 3.5% yield of the average energy stock. And while Enterprise's yield will probably make up the lion's share of total return over time, it has a $7.6 billion capital investment program in the works that will help it support business and distribution growth in the years ahead.
If you're looking for a reliable income stock, you shouldn't hesitate at all before buying Enterprise.
Matt DiLallo (Oneok): The energy sector is notoriously volatile. Because commodity prices can swing wildly in response to changes in supply and demand, many energy companies struggle to deliver consistent growth and stable dividends.
However, Oneok isn't your average energy stock. The energy infrastructure company has delivered over a quarter-century of dividend stability and growth. While it hasn't increased its payment every year, it has nearly doubled its dividend over the past decade, which is much higher than its peers in the pipeline sector.
A big factor fueling Oneok's stable and rising dividend is its proven ability to grow its earnings throughout the commodity price cycle. It has grown its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 11 straight years, and at an impressive 16% compound annual rate during that period. That's rather remarkable considering all the volatility in the sector during that period. Oneok has delivered sustainable growth by investing in value-enhancing organic expansion projects and making highly accretive acquisitions.
Oneok has maintained a rock-solid financial profile even as it has invested heavily to expand its operations and earnings. It has an investment-grade balance sheet backed by a conservative leverage ratio of 3.5.
That gives it the financial flexibility to continue investing in expanding its operations. The company has several organic expansion projects under construction, including its Texas City Logistics Export Terminal joint venture (JV) with MLPX, which should enter commercial service in 2028. Oneok also recently bought out the remaining 49.9% interest in a gathering and processing JV in the Delaware Basin to advance its Permian Basin growth strategy.
The company's investments will supply it with more income to continue increasing its dividend. It's targeting to grow that payout, which currently yields more than 5%, by 3% to 4% per year. With a durable business, rock-solid financial profile, and visible growth coming down the pipeline, Oneok is one energy stock you shouldn't hesitate to buy this month.
Neha Chamaria (ExxonMobil): Since ExxonMobil is an oil and gas producer, investors in energy are sometimes wary of investing in the stock during uncertain times. On the contrary, ExxonMobil is the kind of oil stock you'd want to buy on dips. That's because ExxonMobil is a well-capitalized company and one of the top dividend-paying oil stocks, and it has big plans for the future.
ExxonMobil's cash flows have grown steadily since 2019, after the company launched initiatives to boost production efficiencies and cut costs. In 2024, for instance, ExxonMobil generated $55 billion in cash flow from operations on net earnings of $33.7 billion, driven by record production in the Permian and Guyana basins. ExxonMobil expects the trend to continue, as it's launching 10 "advantaged" projects this year that are expected to add over $3 billion in earnings in 2026 alone.
Advantaged projects are expected to yield higher than average returns in the long term. By 2030, ExxonMobil believes it can generate $20 billion in incremental earnings and $30 billion in cash flow from these and upcoming projects. That's huge, and it could mean big returns for shareholders in the years to come since ExxonMobil also remains committed to dividends. The oil giant has increased its dividend for 42 consecutive years now, and its dividend growth has contributed steadily to shareholders' total returns over the years. ExxonMobil's focus on cash-flow growth makes it one of the best energy stocks you could buy now and hold. The stock also yields a decent 3.9%.
Before you buy stock in Enterprise Products Partners, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!*
Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of June 2, 2025
Matt DiLallo has positions in Enterprise Products Partners. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Enterprise Products Partners and Oneok. The Motley Fool has a disclosure policy.
3 Top Energy Stocks to Buy Without Hesitation in June was originally published by The Motley Fool

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

FAA nominee tells senators he will modernize air traffic control system
FAA nominee tells senators he will modernize air traffic control system

Washington Post

time17 minutes ago

  • Washington Post

FAA nominee tells senators he will modernize air traffic control system

Bryan Bedford, President Donald Trump's nominee to lead the Federal Aviation Administration, told a Senate panel on Wednesday that if confirmed, he will push the agency to act with urgency on the administration's multi-billion-dollar revamp of the nation's air traffic control system. 'I know change can be hard, but I believe the agency can get back on the right track,' Bedford told members of the Senate Commerce, Science and Transportation Committee at his confirmation hearing on Wednesday. Bedford, 63, the CEO of regional carrier Republic Airways, acknowledged that public confidence in the safety of the nation's airspace has been rattled this year by the midair collision near Reagan National Airport that killed 67 people, as well as by equipment failures that caused thousands of delays and cancellations at Newark Liberty International Airport. He said he is committed to rebuilding trust in the agency, which has seen an exodus of veteran leaders as part of staff reductions championed by the U.S. DOGE Service. 'The FAA is sorely in need of his steady leadership,' said Sen. Ted Cruz (R-Texas), the committee's chairman. 'No Senate-confirmed head of the agency completed a full five-year term since 2018.' The agency has seen a parade of permanent and acting leaders in recent years, which some analysts and lawmakers think has hampered its ability to move forward on efforts to tackle decades-old problems including the persistent shortage of air traffic controllers. The FAA's last permanent leader, Michael Whitaker, stepped down in January after just over a year in the job. Bedford told lawmakers he is committed to serving out his full five-year term. Bedford pledged to 'to build a new best-in-class air traffic control system and to rectify the chronic understaffing in our nation's air centers. However, to accomplish this, I hope we can agree we can't repeat the mistakes of the past. We can't accept half measures.' In response to written questions from the committee, Bedford signaled that he would not hesitate to shake up an agency that he views as too cautious and risk-averse. 'There appears to be no incentive for anyone at FAA to take any innovation risk for fear that it could fail,' he wrote. 'You could say there was an 'if it ain't broke, don't fix it' attitude, but that has morphed into a quiet resignation that 'we can't fix it, but we can do our very best to make the system work safely today' mindset.' Bedford said as a result a 'malaise' has set in at the FAA, where 'managers believe the agency is helpless to make the necessary changes, and furthermore, they rationalize it isn't really their fault,' he continued. 'The best they can do is fight every day to make the current system limp along safely.' Bedford has served as CEO of Republic Airways, a regional carrier based in Indianapolis, since 1999. He is married with nine children, several of which joined him at Wednesday's hearing. He has a bachelor's degree in business from Florida State University. Bedford has won praise from an array of industry groups, with Airlines for America, the trade group that represents the nation's largest carriers, calling him a 'superb choice' to lead the agency. 'He intimately understands the importance of a strong working relationship between the FAA and airspace operators of all sizes,' the group said in a statement, urging the Senate committee to move quickly to confirm him. But his nomination has drawn opposition from Democrats on the panel and some labor unions, including the Air Line Pilots Association, which cited his support of efforts to reduce the number of flight hours required to become a commercial pilot. Though repeatedly pressed by several Democratic senators about whether he would seek to reduce the current 1,500-hour requirement, Bedford would only say that he would not take any action that would compromise safety. 'It's important that we have an FAA administrator who strengthens our aviation standards to honor the families who have lost loved ones in these tragic accidents,' said Sen. Maria Cantwell (Washington), the committee's ranking Democrat. 'The tragic midair collision in January between the Army Blackhawk helicopter and American Airlines Flight 5342 took the lives of 67 people and is a stark reminder of what happens when the system fails.'

The Washington Post has a new Opinion editor four months after Bezos touted ‘significant shift'
The Washington Post has a new Opinion editor four months after Bezos touted ‘significant shift'

CNN

time21 minutes ago

  • CNN

The Washington Post has a new Opinion editor four months after Bezos touted ‘significant shift'

The Washington Post on Wednesday announced it has a new Opinion editor. The move comes four months after it announced a 'significant shift' to the Opinion page and the departure of its embattled section chief. Adam O'Neal, who currently serves as The Economist's Washington correspondent, will take over as the Post's top Opinion editor, the outlet announced in an X post that includes an introductory video from O'Neal. 'We're also going to be stalwart advocates of free markets and personal liberties. We'll be unapologetically patriotic, too,' O'Neal said in the video. 'Our philosophy will be rooted in fundamental optimism about the future of this country.' The Opinion section won't 'lecture' readers about ideologies or 'demand you think certain ways about policy,' O'Neal said. The stance falls in line with the vision articulated four months prior by the Post's owner, billionaire Amazon founder Jeff Bezos. Bezos also mentioned free markets and personal liberties when describing the section's new mandate, which drew backlash from some staffers — including from Marty Baron, the Post's revered former executive editor under whom the outlet won 11 Pulitzer Prizes — and praise from some conservatives. 'We are going to be writing every day in support and defense of two pillars: personal liberties and free markets,' Bezos wrote in a February X post. 'We'll cover other topics too of course, but viewpoints opposing those pillars will be left to be published by others.' As part of the February announcement, Bezos noted that David Shipley, O'Neal's predecessor, had been offered the opportunity to continue leading the section under the new directive but that Shipley had 'decided to step away.' Shipley's departure from the Post followed four months of mounting criticism from Post staffers and readers. The storied newspaper drew criticism for its eleventh-hour choice not to endorse then-Vice President Kamala Harris' presidential bid, which led to several editorial board members resigning and more than 200,000 subscribers canceling their digital subscriptions. Shipley also decided not to run a cartoon satirizing the relationship between Bezos and US President Donald Trump from Ann Telnaes, leading to the Pulitzer Prize-winning cartoonist's resignation. Get Reliable Sources newsletter Sign up here to receive Reliable Sources with Brian Stelter in your inbox. Since Shipley's departure, deputy Opinion editor Mary Duenwald has served as interim section chief. No start date has been announced for O'Neal. In a Wednesday email to staffers obtained by CNN, Will Lewis, the Post's chief executive and publisher, noted that O'Neal 'recognizes the importance of ensuring our opinion coverage is relevant, accessible, and consequential for readers who feel underserved.' 'His appointment is about more than just filling a role; it is about connecting our editorial voice to the real concerns and conversations happening across America,' Lewis said. In the email, Lewis similarly championed Bezos' mandate for the Opinion section: He said its new direction is not 'aligned to any political party' but instead presents 'an opportunity for our Opinion section to share the best of American values.' O'Neal's hiring comes just over two weeks after the Post offered voluntary buyouts to Opinion staffers, the Post's video and copy desks and any news employees who have been at the paper for 10 years or more. The buyout offers run through the end of July.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store