Source : showbizcast

Investing in energy stocks provides investors with the opportunity to participate in a dynamic and essential sector of the global economy. The energy industry encompasses a broad spectrum, ranging from traditional fossil fuels such as oil and natural gas to rapidly expanding renewable energy sources like solar and wind.

Investors in energy stocks should consider various factors, including the company's financial health, growth prospects, dividend yields, and exposure to industry trends. Here are some of the good energy stocks to invest your money wisely:

NextEra Energy Inc. (NEE)

Source : nasdaq

NextEra stands tall as the world's largest clean energy producer, boasting over 58 gigawatts of generating capacity through wind and solar projects. Headquartered in Juno Beach, Florida, the company operates through its subsidiaries, including Florida Power & Light Company (FPL) and NextEra Energy Resources.

The company aggressively pursues expansion plans, targeting an impressive 8-10% annual growth rate in its rate base, the foundation for its consistent revenue stream. With a 12.7% CAGR, it demonstrates consistent and robust financial performance.

Chevron Corp (CVX)

Source : nasdaq

Chevron Corp (CVX) stands as one of the top energy stocks. The current dividend yield stands at 3.3% and the company recently announced a $75 billion share buyback program, further demonstrating its commitment to rewarding shareholders.

In Q3 2023, Chevron reported an impressive net income of $11.6 billion, up from $3.1 billion in the same period of 2022. This translates to an earnings per share (EPS) of $3.48, exceeding analyst expectations.

Exxon Mobil Corporation (XOM)

Source : nasdaq

Searching for clean energy stocks to invest your money in? Consider buying this large-cap stock, XOM. Recognizing the shift towards clean energy, XOM is investing in carbon capture and storage technologies, renewable fuels, and biofuels to diversify its portfolio and mitigate future risks.

XOM's net income jumped by an impressive 138% year-over-year to $20.8 billion in 2023, reflecting the company's ability to capitalize on the favorable market conditions.

TotalEnergies SE (TTE)

Source : nasdaq

While fossil fuels remain a core business, TTE is actively investing in renewable energy, including solar, wind, and low-carbon electricity. This French oil and gas major boasts a dividend yield of over 5%, attractive for income-seeking investors.

This dividend stock presents a compelling case for investors seeking a high-performing energy stock with a diversified portfolio, strong financials, and a proactive approach to the energy transition.

Ovintiv Inc. (OVV)

Source : nasdaq

Ovintiv has shifted its focus to developing and producing oil and gas from high-margin, low-cost shale plays, particularly in the Permian Basin and Western Canada Sedimentary Basin. This strategy has led to increased profitability and free cash flow generation.

The company boasts robust financials, with operating cash flow reaching $5.7 billion in the first three quarters of 2023, up from $3.1 billion in the same period last year. Its recent annual dividend yield is 2.5%.

EOG Resources Inc. (EOG)

Source : nasdaq

If you're seeking a growth-oriented energy stock with a solid dividend and a knack for outperforming the pack, EOG deserves a closer look. This oil stock is actively investing in technologies like carbon capture and storage.

This Houston-based explorer, formerly known as Enron Oil & Gas, has carved a niche for itself with shrewd drilling strategies, operational excellence, and a relentless focus on shareholder returns. EOG holds a prime position in the lucrative Permian Basin.

Enphase Energy (ENPH)

Source : nasdaq

This global leader in microinverter technology has consistently outpaced the pack, leaving a trail of impressive data points in its wake. As one of the best energy solar stocks, ENPH has delivered a staggering 900% return on investment.

ENPH is the world's leading supplier of microinverter-based solar and battery systems. Its microinverter technology optimizes energy production from each solar panel, unlike traditional centralized inverters, resulting in higher efficiency and resilience.

Coterra Energy Inc. (CTRA)

Source : nasdaq

The company was formed in 2021 through the merger of Cabot Oil & Gas and Cimarex Energy. CTRA has a diversified portfolio of assets, including natural gas, natural gas liquids, and oil. The company's operations are focused on three key regions: Appalachia, Permian Basin and Oklahoma.

CTRA is among the energy stocks to invest in with impressive results, exemplified by its 3.28% dividend yield, 8.42 P/E ratio, and $2.89 EPS. These metrics showcase their financial strength and commitment to rewarding shareholders.

Shell PLC (SHEL)

Source : nasdaq

Founded in the United Kingdom in 1899, Shell has evolved into a diversified energy leader, spanning exploration and production, refining and marketing, chemicals, and increasingly, renewable energy solutions. Shell operates in over 70 countries and employs over 83,000 people.

Shell delivered a stellar performance in 2022, with revenue surging 45.8% to $381.31 billion and earnings soaring 110.48% to $42.31 billion, fueled by surging energy prices. The company's dividend payout represented a generous 4.4% dividend yield.

ConocoPhillips (COP)

Source : nasdaq

ConocoPhillips (COP) is a major American integrated energy company, ranking among the world's top 10 in terms of production. With over 130 years of experience, COP boasts a diverse portfolio spanning the exploration, production, refining, and marketing of oil and natural gas across 15 countries.

COP has a consistent history of raising its dividend, with a 5-year compound annual growth rate (CAGR) of 4.4%. Also, 2023 saw a 21.8% increase in COP's stock price, outperforming the S&P 500's 7.9% gain.

Schlumberger Limited (SLB)

Source : nasdaq

Schlumberger invests heavily in research and development, boasting cutting-edge technologies in reservoir characterization, drilling, production, and digital solutions. Its strong financial performance, focus on innovation, and diversification efforts position it well to navigate the evolving energy landscape.

In Q4 2023, Schlumberger reported revenue of $7.2 billion, exceeding analyst expectations, and earnings per share (EPS) of $0.74, beating expectations by $0.03.

Canadian Natural Resources Limited (CNQ)

Source : nasdaq

Why not include CNQ on the list of best energy stocks? The company is the largest oil and natural gas producer in Canada and a top-tier player globally. Its diversified portfolio spans Western Canada, the North Sea, and offshore Africa, offering resilience against regional challenges.

CNQ's financial performance is impressive. In 2022, it reported revenue of $42.3 billion, an increase of 40.73% compared to the previous year. Net earnings jumped 42.71% to reach $10.94 billion, and the company boasts a healthy dividend yield of over 4%.

Phillips 66 (PSX)

Source : nasdaq

From turning crude oil into gasoline and lubricants to transporting and storing valuable liquids across the country, PSX plays a crucial role in powering the nation's economy. Phillips 66 is a dividend aristocrat, having increased its annual dividend for over 12 consecutive years.

PSX has been a strong performer in recent times, gaining over 28% in 2023 and outperforming the S&P 500 index. The company has consistently met or even surpassed analyst's expectations in terms of earnings and revenue, showcasing efficiency and resilience in a turbulent market.

Marathon Petroleum (MPC)

Source : nasdaq

Fueling investor's portfolios for over a century, Marathon Petroleum (MPC) stands as a titan in the refining industry. This integrated downstream energy giant boasts a network of 13 refineries across the U.S., churning out gasoline, diesel, jet fuel, and more to keep the nation humming.

With a 3-year average revenue growth rate exceeding 80% of its peers and strong EBITDA growth, the company has its foot on the gas pedal. MPC currently boasts a juicy dividend yield of 2.16%, meaning you get a steady stream of cash for owning a piece of the action.

Dominion Energy Inc. (D)

Source : nasdaq

Did you know that Dominion Energy Inc. (D) is one of the largest energy providers in the US? The company is actively transitioning towards cleaner energy sources, to achieve net-zero emissions by 2050.

Its stock price has been relatively stable in recent years, hovering between $40 and $60 per share. The stock currently offers a healthy dividend yield of over 5.8%, making it attractive to income investors.

American Electric Power Co. Inc. (AEP)

Source : nasdaq

Fact check: American Electric Power Company is one of the largest investor-owned electric utilities in the United States. AEP's energy mix remains heavily reliant on coal (43%), though it's diversifying with natural gas (27%), renewables (19%), and nuclear (7%).

A significant portion of AEP's business operates in regulated markets, providing a relatively stable and predictable revenue stream. Regulatory oversight can help ensure a fair return on investments in infrastructure and operations.

Xcel Energy Inc. (XEL)

Source : nasdaq

Xcel Energy (XEL) is a major American utility company serving eight states in the West and Midwest. It's a prominent player in the energy sector, making it a potentially interesting stock for investors to consider.

The company continues to commit to clean energy, recently announcing a $4.5 billion wind farm project. The stock has seen some fluctuation in the past week, trading between $59.18 and $64.25. Over the past year, it has ranged from $53.73 to $71.96.

PG&E Corp. (PCG)

Source : nasdaq

PG&E Corp is a regulated utility holding company headquartered in San Francisco, California. Its main subsidiary is Pacific Gas and Electric Company (PG&E), which provides electricity and natural gas to over 15 million people in Central and Northern California.

With a strengthened balance sheet and improved risk management, PG&E's financial health promises stability. The stock's 52-week range is $14.71 to $18.32.