Got $1,000? 3 Giant High-Yield Energy Stocks to Buy and Hold Forever

Core Viewpoint - The energy sector is volatile, but integrated energy companies like Chevron, ExxonMobil, and TotalEnergies offer a combination of yield, safety, and diversification for income investors [1][2]. Group 1: Integrated Energy Companies - The primary integrated energy companies include Chevron, Exxon, TotalEnergies, BP, and Shell, with BP and Shell having cut dividends in 2020, making them less reliable for dividend-focused investors [3][6]. - The integrated model of these companies helps to stabilize financial performance across the volatile energy sector by providing exposure to upstream, midstream, and downstream operations [4][3]. Group 2: Financial Strength - Exxon and Chevron are highlighted as the most financially conservative integrated energy companies, with Exxon's debt-to-equity ratio at approximately 0.15 and Chevron's at 0.20, allowing them to manage debt effectively during downturns [6][8]. - Both companies have a strong history of dividend payments, with Exxon maintaining a 43-year annual dividend streak and Chevron at 38 years, offering yields of nearly 3.5% and 4.4% respectively, significantly higher than the S&P 500's 1.2% yield [9][10]. Group 3: Clean Energy Transition - TotalEnergies is noted for its commitment to clean energy, having increased its capital investments in this area while maintaining its dividend, making it a better option than BP and Shell [11][12]. - In 2024, TotalEnergies' integrated power division contributed approximately 10% to its segment adjusted net operating income, reflecting a 17% year-over-year increase [13]. - Despite a high yield of 6.6%, U.S. investors face French taxes on dividends, which may reduce the effective yield [14]. Group 4: Investment Timing - The best time to invest in these integrated energy giants is during significant downturns in the energy market, although this is often the most challenging time to make such investments [15]. - Current relatively weak energy prices present a favorable opportunity for income-focused investors to consider these companies due to their high yields [16].