2 No-Brainer High-Yield Energy Stocks to Buy With $2,000 Right Now
139min read In a world where the S&P 500’s average dividend yield hovers around 1.3%, energy investors are craving income—and two stocks are delivering it in spades. Energy Transfer LP (ET) and MPLX LP (MPLX) currently offer dividend yields of 8.0% and 7.57%, respectively, while their stable cash flows and infrastructure dominance make them cornerstones of the energy transition. Here’s why $2,000 invested today could be a game-changer.
1. Energy Transfer LP (ET): A Pipeline Giant with an 8% Yield
Dividend Yield: 8.0% (as of August 2024)
Consecutive Years of Dividend Increases: 3
Stock Price (April 2025): $17.27
Energy Transfer is a midstream powerhouse, owning critical pipelines for natural gas, crude oil, and refined products. Its 8.0% yield tops the energy sector, fueled by its role as a “bridge fuel” infrastructure provider. With projects like the Permian Highway pipeline and growth tied to AI-driven electricity demand, ET’s fee-based model shields it from commodity price swings.
Why Buy Now?
- Dividend Sustainability: ET’s payout ratio (dividends relative to cash flow) is 50%, leaving room for growth.
- Growth Catalysts: Expansion into LNG export terminals and hydrogen infrastructure positions it for long-term demand.
- Market Resilience: Its stock has held steady even as oil prices dipped to $56.98/barrel in April 2025.
2. MPLX LP (MPLX): A 10-Year Dividend Champion at 7.57%
Dividend Yield: 7.57% (May 2025)
Consecutive Years of Dividend Increases: 10
Stock Price (Est.): $23.40 (calculated using dividend payout of $0.96/share)
MPLX, owned by Marathon Petroleum, operates pipelines and storage facilities in the Marcellus Shale and Permian Basin. Its 7.57% yield (as of May 2025) is backed by a 10-year dividend growth streak—a testament to its financial discipline. Unlike exploration firms, MPLX’s revenue comes from fixed fees, making it recession-resistant.
Why Buy Now?
- Leverage Strength: Debt-to-EBITDA ratio of 3.1x is low for the sector, reducing refinancing risk.
- Expansion Plans: $1.7 billion in 2025 growth capital will boost LNG and natural gas export capacity.
- Consistency: Dividends have grown 10% annually over the past three years, outpacing inflation.
Risk Considerations and Buying Strategy
Both stocks face risks tied to regulatory shifts (e.g., U.S. tariffs on energy imports) and oil price volatility. However, their fee-based models and essential infrastructure roles mitigate these risks.
How to Invest $2,000:
- Option 1: Split evenly ($1,000 each). Buy 58 shares of ET ($17.27/share) and 42 shares of MPLX ($23.40/share).
- Option 2: Prioritize ET for its higher yield, purchasing 116 shares for a full $2,000.
Conclusion: Income and Growth in One Portfolio
With yields of 8.0% and 7.57%, ET and MPLX are rare finds in a low-yield world. Their pipelines and storage networks are the unsung heroes of energy transition, ensuring steady cash flows even as the world shifts toward renewables.
- ET’s Permian Highway pipeline and LNG projects offer long-term growth, while its payout ratio ensures dividend safety.
- MPLX’s 10-year dividend streak and low leverage make it a defensive play in volatile markets.
Investing $2,000 now could yield $160+ in annual dividends (based on current yields), with capital appreciation potential as energy demand surges. In a sector where stability is scarce, these two stocks are the ultimate “no-brainer” picks.
Final Take: Buy both—diversification in high-yield energy just got smarter.
