11 Best Energy Stocks to Buy for Dividends in 2026

Core Insights - The article discusses the best energy stocks to buy for dividends in 2026, highlighting the performance of the S&P Energy index and the overall energy sector in 2025 [1][2] Industry Performance - The S&P Energy index gained almost 5% in 2025, while the S&P 500 had total returns of 16.4%. The energy sector lagged due to a late-year decline in crude prices, but certain segments like refiners, integrated majors, and midstream companies performed well [1] - The energy industry is currently facing oversupply issues and a low-priced environment, leading investors to favor companies that demonstrate durability, capital discipline, and downstream leverage rather than pure production growth [2] Geopolitical Factors - Rising geopolitical tensions, particularly regarding US actions in Venezuela, could significantly impact the energy sector. Venezuela has the largest oil reserves globally, which could benefit companies that navigate the situation effectively [3] Stock Recommendations - The article lists the best energy dividend stocks to consider, focusing on those with strong hedge fund backing and a minimum annual dividend yield of 3% as of January 19, 2025 [6] Company Highlights - Canadian Natural Resources Limited (NYSE:CNQ): - Number of Hedge Fund Holders: 45 - Dividend Yield: 4.97% - The company is in talks to acquire a $1 billion-plus portfolio of natural gas properties in Alberta [8][9] - Experienced a downturn due to US actions in Venezuela but has since recovered as the market reassessed the timeline for Venezuelan crude entering the US [11] - Phillips 66 (NYSE:PSX): - Number of Hedge Fund Holders: 47 - Dividend Yield: 3.47% - Received a price target increase from Scotiabank from $133 to $140, while JPMorgan lowered its target from $154 to $151 [12][13][14]