The Smartest High-Yield Energy Stocks to Buy With $1,000 Right Now

As the energy sector continues to evolve, investors are seeking high-yield energy stocks that offer a combination of strong dividends and growth potential. With a $1,000 investment, you can diversify your portfolio by selecting a mix of energy stocks that cater to different market segments and geographies. Here are some of the smartest high-yield energy stocks to consider right now, based on the provided information.



1. Energy Transfer (ET)
* Forward EV/EBITDA multiple of 8.5, indicating an undervalued stock
* Strong presence in the Permian Basin, providing access to cheap natural gas
* Pipeline infrastructure to transport natural gas to various locations
* Inbound requests for connecting power plants and data centers to its pipeline system
* Lucrative share buyback program and a 6.4% forward yield
2. Enterprise Products Partners (EPD)
* Attractive EV/EBITDA multiple of 10, suggesting an undervalued stock
* Three decades of annual dividend increases (in Canadian dollars)
* Strong balance sheet and conservative approach to leverage
* Exposure to cleaner-burning natural gas through regulated natural gas utilities
* 6.1% dividend yield and a plan to shift toward cleaner energy sources
3. TotalEnergies (TTE)
* French integrated energy major with a 5.8% dividend yield
* Increasing focus on the clean energy transition, with 10% of adjusted net operating income coming from the integrated power business
* Serious about the clean energy effort, with a 20% year-over-year increase in adjusted net operating income in the integrated power division
* U.S. investors will have to pay foreign taxes on the dividends they collect, but can claim back a portion come April 15
4. Enbridge (ENB)
* North American midstream giant with a 6.1% dividend yield
* Three decades of annual dividend increases (in Canadian dollars)
* Boring fee-based business with a plan to shift toward cleaner energy sources
* Exposure to cleaner-burning natural gas through regulated natural gas utilities
* Acquisition of three regulated natural gas utilities increased exposure to cleaner-burning natural gas from 40% to 47% of EBITDA



When selecting high-yield energy stocks for a $1,000 investment, consider the following key factors:

1. Dividend yield: Look for stocks with high dividend yields, such as those mentioned above.
2. Dividend growth and consistency: Evaluate the company's history of consistent dividend growth or at least maintaining its dividend payouts.
3. Financial health and stability: Assess the company's financial health and stability by examining key metrics such as debt-to-equity ratio, return on equity (ROE), and earnings per share (EPS).
4. Business model and growth prospects: Consider the company's business model and growth prospects, as well as its exposure to different energy commodities and geographies.
5. Market conditions and industry trends: Be aware of market conditions and industry trends that may impact the company's performance, such as the shift towards cleaner energy sources and the increasing demand for natural gas.
6. Diversification: Diversify your investment portfolio by including stocks from different sectors and geographies to mitigate risks associated with high-yield energy stocks.

By adhering to these rules and considering the provided information, you can make a more informed decision when selecting high-yield energy stocks for a $1,000 investment. Keep in mind that the energy sector is in transition, and the smartest investments will be those that position themselves to benefit from the shift towards cleaner energy sources while still generating cash flows from traditional energy sources.