Three Energy Stocks Worth Adding to Your Portfolio Now

The energy sector often gets overlooked by growth-focused investors, yet it remains fundamental to global economic stability. If you’re seeking dividend income combined with meaningful capital appreciation, energy stocks deserve your attention. Here’s a closer look at three compelling opportunities in this essential industry.

Why Now Is the Time for Energy Stock Investing

The energy sector has experienced a more muted performance recently. Major energy indices have climbed roughly 4% year-to-date, trailing the broader market’s nearly 18% advance. This underperformance stems partly from oil price pressures. However, this divergence creates an intriguing entry point for patient investors. The fundamentals remain solid—the world’s energy demand continues expanding, and several major players are positioned to capitalize on this secular tailwind.

Three companies stand out as particularly compelling: ConocoPhillips, Oneok, and NextEra Energy. Each offers a different angle on energy sector growth, whether through commodity exposure, midstream infrastructure, or clean energy transition plays.

ConocoPhillips: Unlocking Substantial Free Cash Flow Growth

ConocoPhillips (NYSE: COP) operates as one of the sector’s leading integrated oil and gas producers, distinguished by its exceptionally low-cost operations and geographically diversified asset base. The company benefits from fortress-like economics—it needs an average oil price in the mid-$40s merely to sustain its capital expenditure program, with approximately $10 per barrel additional to fund its dividend. With crude currently trading in the low $60s, ConocoPhillips is generating copious surplus free cash flow.

The company’s earnings trajectory looks particularly compelling. Through strategic cost reductions from last year’s transformational Marathon Oil acquisition, management expects its breakeven point to decline steadily. More meaningfully, three major liquefied natural gas projects plus the Willow oil project in Alaska should reach completion by decade’s end. These catalysts alone should drive an incremental $6 billion in annual free cash flow by 2029 (assuming $60 oil). This represents a substantial jump from the $6.1 billion generated through the first nine months of 2025.

With this expanding cash generation, ConocoPhillips has ammunition for aggressive shareholder returns. The company recently increased its 3.4%-yielding dividend by 8% and targets dividend growth positioning it within the S&P 500’s top 10%. Meanwhile, ongoing share repurchases amplify per-share value creation. This combination positions ConocoPhillips to deliver robust total returns over the coming years.

Oneok: Capturing Merger Synergies and Expansion Upside

Oneok (NYSE: OKE) represents America’s premier energy midstream platform—a pipeline and logistics company generating highly dependable cash flows underwritten by long-term contracts and government-regulated rate structures. This stability supports an impressive 5.6% dividend yield, appealing to income-focused investors.

Oneok has executed a deliberate expansion strategy through strategic acquisitions. The 2023 Magellan Midstream Partners transaction broadened its footprint into crude oil and refined products infrastructure. Last year, the company acquired Medallion Midstream and a controlling stake in EnLink for $5.9 billion, followed by acquiring the remaining EnLink interest for $4.3 billion earlier this year. These transactions unlock hundreds of millions in cost savings and operational synergies materializing over the next several years.

Beyond acquisitions, Oneok is pursuing organic expansion—including the Texas City Logistics Export Terminal and Eiger Express Pipeline. Both projects are slated for mid-2028 commercial launch, providing additional earnings growth catalysts. Between merger synergies and expansion projects, Oneok should sustain 3% to 4% annual dividend increases. For dividend investors seeking growth alongside current income, this stock offers an appealing risk-reward profile.

NextEra Energy: Investing in Future Energy Demand

NextEra Energy (NYSE: NEE) operates as a diversified energy infrastructure giant combining a regulated electric utility with a substantial energy development platform. Its Florida-based utility benefits from rate regulation, generating steadily expanding earnings. Its broader energy resources segment produces growth-oriented earnings backed by long-term contracts and regulated return structures. The 2.8% dividend yield provides steady income.

NextEra is deploying enormous capital to position itself for rising electricity demand. Its Florida utility plans to invest upwards of $100 billion through 2032 addressing the state’s surging energy requirements. Simultaneously, the energy resources platform is investing billions in transmission infrastructure, gas pipeline expansion, and clean energy development. These investments support over 8% compound annual earnings-per-share growth across the next decade.

This growth profile enables meaningful shareholder returns. NextEra plans to increase its dividend by 10% next year, then sustain 6% compound annual growth through at least 2028. This combination of earnings expansion and dividend growth creates powerful total return potential for long-term equity holders.

Building Your Energy Stock Position

ConocoPhillips, Oneok, and NextEra Energy each offer distinct but complementary growth narratives. ConocoPhillips provides commodity leverage and cash return visibility. Oneok offers midstream stability and merger upside. NextEra supplies utility-grade safety plus clean energy exposure.

Together, these energy stocks provide exposure to different facets of the sector’s evolution. As energy demand persists and these companies execute their strategic initiatives, shareholders should benefit from both rising dividends and potential capital appreciation. For investors seeking yield combined with growth, these three represent a compelling starting point for energy stock portfolio construction.