2 High-Yield Energy Stocks to Buy With $1,000 and Hold Forever

Investing in energy stocks can be a lucrative endeavor, especially when considering high-yield options that offer attractive dividends and long-term growth potential. With a $1,000 investment, you can build a diversified portfolio of energy stocks that can generate substantial income and appreciate over time. In this article, we will explore two high-yield energy stocks that are well-positioned for long-term success: TotalEnergies (TTE) and Enbridge (ENB).

TotalEnergies (TTE)

TotalEnergies is a French integrated energy company with a diverse portfolio spanning the entire energy sector, from upstream (oil production) to midstream (pipelines) and downstream (chemicals and refining). This diversification helps to soften the inherent swings of the energy sector, making TotalEnergies a stable choice for long-term investors.

One of the key attractions of TotalEnergies is its commitment to investing in clean energy. The company's integrated power business grew by 20% year over year through the first nine months of 2024, contributing roughly 10% of adjusted net operating income. This commitment to clean energy provides a hedge for investors, as the world transitions towards cleaner energy sources.

TotalEnergies offers a 5.5% dividend yield (U.S. investors have to pay French taxes, but can claim a portion back come April 15). The company has maintained its dividend despite announcing its plans to invest in clean energy, demonstrating its commitment to shareholder returns.



Enbridge (ENB)

Enbridge is a Canadian energy infrastructure company that owns and operates vital energy infrastructure, such as pipelines, in North America. As a midstream company, Enbridge charges fees for the use of its assets, which leads to very consistent cash flows over time. This consistency makes Enbridge an attractive choice for income-oriented investors.

Enbridge has a lofty 6% dividend yield and has managed to increase its dividend for 30 years, demonstrating its commitment to shareholder returns and financial stability. The company's midstream focus provides exposure to various energy markets, reducing the impact of volatility in any one segment.

Enbridge is also actively transitioning to clean energy, having invested in natural gas and developed a small but growing clean energy business. This commitment to clean energy reduces Enbridge's reliance on oil, which now accounts for about 50% of its earnings before interest, taxes, depreciation, and amortization (EBITDA).



Conclusion

Investing in high-yield energy stocks like TotalEnergies (TTE) and Enbridge (ENB) can provide attractive dividends and long-term growth potential. Both companies offer diversification across the energy sector, commitment to clean energy, and strong dividend histories. By investing in these two energy stocks with $1,000 and holding them for the long term, you can build a stable and growing income stream while participating in the energy transition.