The Smartest High-Yield Energy Stocks to Buy With $2,000 Right Now

Published in Stocks and Investing on Sunday, August 10th 2025 at 7:59 GMT by The Motley Fool
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These reliable dividend payers are preparing today for the big, long-term changes taking place in the energy sector.

The Smartest High-Yield Energy Stocks to Buy With $100 Right Now

In the ever-volatile world of energy investing, high-yield stocks continue to attract income-focused investors seeking reliable dividends amid fluctuating oil prices and the global shift toward renewable energy. As we navigate 2025, the energy sector remains a cornerstone of portfolios, particularly for those prioritizing passive income. This article delves into some of the smartest high-yield energy stocks that you can buy with just $100, emphasizing companies with strong fundamentals, sustainable payouts, and resilience in a changing market. We'll explore why these picks stand out, their dividend yields, growth prospects, and potential risks, helping you make informed decisions without needing a fortune to get started.

Why Focus on High-Yield Energy Stocks in 2025?

The energy sector has been a rollercoaster, influenced by geopolitical tensions, supply chain disruptions, and the accelerating transition to cleaner energy sources. Despite these challenges, high-yield stocks—particularly those in midstream operations like pipelines and storage—offer a compelling mix of stability and income. These companies often operate under fee-based models, insulating them from commodity price swings. With interest rates potentially stabilizing and inflation concerns lingering, high-yield dividends provide a hedge against economic uncertainty. Moreover, many energy firms are adapting by investing in renewables, carbon capture, and efficiency improvements, positioning them for long-term relevance. For investors with limited capital, such as $100, the key is selecting stocks with share prices under that threshold while offering yields above the market average (around 1.5-2% for the S&P 500). We're targeting yields of 5% or higher, backed by solid cash flows and histories of dividend growth. Let's break down three standout picks that fit this bill: Enterprise Products Partners (EPD), Energy Transfer (ET), and Enbridge (ENB). These aren't speculative plays but rather established players with proven track records.

Enterprise Products Partners (EPD): The Midstream Giant with Unwavering Reliability

Enterprise Products Partners, a master limited partnership (MLP) focused on natural gas, crude oil, and petrochemical transportation, is a perennial favorite for yield hunters. As of mid-2025, EPD boasts a dividend yield of approximately 7.5%, making it one of the most attractive options in the space. With a share price hovering around $28-$30, you could easily snag three to four shares with $100, setting yourself up for quarterly payouts. What makes EPD "smart" is its 26 consecutive years of distribution increases, even through oil crashes like 2014-2016 and the 2020 pandemic. The company's vast network of over 50,000 miles of pipelines generates fee-based revenue, shielding it from volatility in energy prices. In recent quarters, EPD has expanded into export terminals and renewable fuel projects, aligning with ESG trends without abandoning its core business. Financially, it's rock-solid: a distribution coverage ratio of 1.6x means dividends are well-supported by cash flow, and debt levels are manageable at about 3.5x EBITDA.

However, as an MLP, investors should note the tax implications—distributions are treated as returns of capital, potentially deferring taxes but complicating filings. Risks include regulatory changes in pipeline approvals or a sharper-than-expected decline in fossil fuel demand. Still, for conservative income seekers, EPD's stability and high yield make it a no-brainer entry point with modest capital.

Energy Transfer (ET): High Yield with Growth Upside

Energy Transfer, another MLP heavyweight, operates an extensive portfolio of assets including pipelines, storage, and processing facilities across North America. Yielding around 8-9% in 2025, with shares priced at about $15-$16, your $100 could buy six or more units, amplifying your income potential. ET's appeal lies in its diversification: it handles crude, natural gas liquids, and refined products, plus recent acquisitions like the Crestwood merger have bolstered its footprint. The company has rebounded strongly post-2020, with distribution growth resuming and a focus on deleveraging—targeting a leverage ratio below 4.5x. Free cash flow has surged, supporting not just dividends but also unit buybacks and organic expansions, such as new Permian Basin projects.

Looking ahead, ET is dipping into energy transition plays, including blue hydrogen and carbon sequestration initiatives, which could future-proof its business. Analysts project mid-single-digit distribution growth annually, driven by rising U.S. energy exports. That said, ET has faced past controversies, like pipeline disputes, and its higher debt load compared to peers introduces some risk if interest rates spike. Nevertheless, for those willing to tolerate moderate volatility, ET offers one of the sector's juiciest yields with tangible upside.

Enbridge (ENB): The Canadian Powerhouse Blending Yield and Sustainability

Shifting north of the border, Enbridge stands out as a diversified energy infrastructure firm with a yield of about 6.5-7%, and shares trading at $35-$40—perfect for picking up two to three with $100. Unlike pure-play MLPs, Enbridge is a corporation, simplifying taxes for U.S. investors while delivering consistent dividends for 29 straight years. Enbridge's strength is its balanced portfolio: 50% liquids pipelines (including the controversial Line 5), natural gas transmission, and a growing renewables segment with wind and solar assets generating over 2 gigawatts. This mix provides resilience; even as oil demand evolves, natural gas and clean energy investments ensure steady cash flows. The company targets 3-5% annual dividend growth, backed by a payout ratio of 60-70% and investment-grade credit ratings.

In 2025, Enbridge is advancing major projects like the Ingleside Energy Center expansion for LNG exports and partnerships in hydrogen infrastructure. This forward-thinking approach mitigates risks from environmental regulations and positions it as a leader in the energy transition. Potential downsides include currency fluctuations (as a Canadian stock) and ongoing legal battles over pipelines, but its defensive moat and high yield make it an intelligent choice for diversified exposure.

Putting It All Together: Building a Mini-Portfolio with $100

With $100, you could allocate roughly $33 to each of these stocks, creating a mini-portfolio yielding an average of 7-8% overall. This approach diversifies across midstream operations, geographies, and energy types, reducing single-stock risk. Remember, high yields often signal higher risk, so monitor sector news like OPEC decisions or U.S. policy shifts on fossil fuels. In conclusion, these high-yield energy stocks—EPD, ET, and ENB—represent smart buys for income investors in 2025. They combine generous payouts with operational strength and adaptability, proving you don't need deep pockets to tap into the sector's potential. Always conduct your due diligence, consider your risk tolerance, and consult a financial advisor. As energy evolves, these picks could provide both stability and growth for years to come.

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