Chevron and TotalEnergies: Top High-Yield Energy Stocks to Buy Now

Chevron and TotalEnergies are integrated energy companies offering high dividend yields of 4.7% and 6.3%, respectively. Both companies have exposure to the entire value chain, from production to transportation, chemicals, and refining, which helps soften the fluctuations in energy prices. Chevron has a great dividend record, while TotalEnergies is focused on change, investing in clean energy and potentially volatile countries. Investors should consider these factors when deciding to buy either stock.

Energy stocks have long been a staple for dividend investors seeking high yields. Among the top options currently, Chevron (CVX) and TotalEnergies (TTE) stand out with their high dividend yields of 4.7% and 6.3%, respectively. Both companies offer exposure to the entire energy value chain, from production to transportation, chemicals, and refining, which helps mitigate the volatility inherent in energy prices.

Integrated Energy Companies

Integrated energy companies like Chevron and TotalEnergies are well-positioned to weather the fluctuations in energy prices. By diversifying their operations across various segments of the industry, these companies can soften the impact of price swings. For instance, while oil and natural gas prices drive their core business, the diversification helps balance their financial performance [1].

Chevron: A Dividend Powerhouse

Chevron is renowned for its consistent dividend growth. With 38 consecutive annual dividend increases, Chevron has built a strong reputation among conservative investors. Its solid balance sheet, with a debt-to-equity ratio of approximately 0.2 times, allows management to maintain dividends even during industry downturns. This balance sheet strength is a key factor in Chevron's dividend reliability [1].

TotalEnergies: Focused on Change

TotalEnergies, on the other hand, is actively investing in clean energy and potentially volatile countries. The company is leveraging its carbon fuel profits to transition towards a more sustainable energy mix. Unlike some of its European peers, TotalEnergies has not cut its dividend during this transition, instead increasing it annually. This demonstrates a commitment to maintaining shareholder returns while investing in the future [1].

Energy Prices and Yield Attractiveness

The recent weakness in oil prices has put downward pressure on Chevron and TotalEnergies' shares, making their yields more attractive. While this presents an opportunity for dividend investors, it is essential to consider the long-term prospects of each company. For more conservative investors, Chevron's consistent dividend history makes it a solid choice. For those willing to take on more risk in exchange for exposure to clean energy, TotalEnergies could be a compelling option.

Conclusion

Chevron and TotalEnergies offer high dividend yields and diversification benefits, making them attractive options for investors seeking exposure to the energy sector. While Chevron's dividend history and balance sheet strength provide a reliable income stream, TotalEnergies' focus on clean energy and its commitment to maintaining dividends during transition make it an appealing choice for investors looking to align their portfolios with future energy trends. Both companies have their merits, and the choice between them will depend on an investor's risk tolerance and long-term objectives.

References

[1] https://www.fool.com/investing/2025/07/10/here-are-my-top-2-high-yield-energy-stocks-to-buy/
[2] https://finance.yahoo.com/news/top-2-high-yield-energy-103800539.html