11 Best Coal Stocks to Buy According to Hedge Funds

Industry Overview - The Energy Information Administration (EIA) forecasts that U.S. power demand will exceed previous records in 2025 and 2026, reaching 4,187 billion kWh in 2025 and 4,305 billion kWh in 2026, surpassing the 2024 record of 4,097 billion kWh [2] - Coal's share of electricity generation is expected to increase from 16% in 2024 to 17% in 2025 before declining again in 2026, while renewables will rise from 23% in 2024 to 26% in 2026 [3] - The ongoing demand for coal highlights its role as a reliable electricity source in the U.S., presenting investment opportunities in coal producers benefiting from long-term contracts and stable pricing [4] Investment Opportunities - The best coal stocks to buy offer a mix of conservative positioning and income potential as global energy consumption rises [5] - The methodology for selecting the best coal stocks involved using the Finviz screener and assessing hedge fund sentiment through Insider Monkey's database, tracking over 1,000 hedge funds [7] - Research indicates that imitating top hedge fund stock picks can lead to market outperformance, with a reported return of 373.4% since May 2014 [8] Company Highlights - NACCO Industries, Inc. (NYSE:NC) has 5 hedge fund holders and announced a quarterly dividend of $0.2525 per share, representing a 2.81% yield, with a dividend growth rate of 11% over the past year [9][10][11] - Alliance Resource Partners, L.P. (NASDAQ:ARLP) has 8 hedge fund holders and offers a strong 10.56% dividend yield, with a P/E ratio of 12.49, despite facing market challenges [12][13][14]