Invest in two high-return Energy Stocks worth $1,000 and hang onto them indefinitely for substantial long-term returns.
In the ever-changing landscape of the energy sector, two companies stand out for their resilience and attractive dividend yields: Chevron (CVX) and Enterprise Products Partners (EPD). Here's a closer look at what makes these companies appealing to dividend investors.
### Chevron (CVX)
With operations spanning exploration, refining, and renewable energy, Chevron boasts a diversified portfolio that helps mitigate risks associated with any single commodity or region. The company's strong balance sheet, with a modest debt-to-equity ratio of 0.20 as of Q1 2025, and an AA credit rating, provides stability and room for funding dividends and strategic investments.
Chevron's allure for income-focused investors is further enhanced by its high dividend yield, which currently stands around 5%, higher than many of its peers. The company has also demonstrated a consistent track record of dividend growth, with over 35 consecutive years of dividend increases.
### Enterprise Products Partners (EPD)
Enterprise Products Partners (EPD) specialises in the transportation, storage, and processing of natural gas, natural gas liquids, and crude oil. This midstream focus provides stable cash flows and less exposure to commodity price volatility. EPD's extensive pipeline network and storage facilities enhance its operational efficiency and reduce supply chain bottlenecks, contributing to consistent financial performance.
EPD is known for its stable cash flow and attractive dividend yield, making it appealing to income investors seeking defensive positions. The company's investments in new infrastructure align with rising energy demand, positioning it for long-term growth.
Notably, EPD's investment-grade-rated balance sheet and conservative management approach add to its appeal.
In times of market volatility, Chevron and Enterprise Products Partners are good options for investors, thanks to their ability to deal with the energy sector's volatility while rewarding investors with dividends. A $1,000 investment in Enterprise Products Partners will leave you owning around 31 shares of the MLP, while the distribution yield will make up the vast majority of your total return.
Investing in Chevron (CVX) and Enterprise Products Partners (EPD) can be enticing for dividend-focused finance, due to their robust financial positions and attractive dividend yields. Chevron's diversified portfolio, strong balance sheet, and high dividend yield are alluring to income-oriented investors, while Enterprise Products Partners' stable cash flows, extensive pipeline network, and investment-grade-rated balance sheet make it an appealing choice for those seeking defensive finance in the energy sector.
