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

Key Points

• The energy sector is seeing a big shift, with the world moving from dirtier energy sources to cleaner ones.

• TotalEnergies is an integrated energy giant that's got a big yield and a growing electricity business.

• Enbridge is a high-yield midstream giant shifting toward natural gas and dipping into renewable power.

• 10 stocks we like better than Enbridge ›

Between 2020 and 2050, electricity is expected to rise from 21% of final energy use in the United States to 32%. That's a huge change and one that is directionally similar to the changes taking shape throughout the world. Some energy companies are sticking to their oil and natural gas roots.

Others, like TotalEnergies (NYSE: TTE) and Enbridge (NYSE: ENB), see the writing on the wall and are preparing now. If you have $2,000 to invest today, getting ahead of the curve could be a good call for your portfolio.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

What do TotalEnergies and Enbridge do?

TotalEnergies is what is known as an integrated energy company. It has operations in the upstream (oil and natural gas production), the midstream (pipelines), and the downstream (chemicals and refining). Each of these segments of the broader energy sector operates a little differently through the energy cycle. And, thus, having an integrated business model helps to soften the peaks and valleys inherent to this commodity-driven business.

Image source: Getty Images.

Enbridge is focused on the midstream space. It essentially collects tolls from customers that use its energy transportation assets, including things like pipelines and storage. This model provides reliable cash flows as the volume passing through its midstream system is more important than the price of oil and natural gas. Focusing on the midstream is a good call for investors who want energy exposure but who would rather avoid commodity risk.

What are TotalEnergies and Enbridge doing differently?

Basically, the core of both of these businesses is still oil and natural gas. That's not a bad thing. Although there is an energy transition taking place, it is likely to be a decades-long affair. They are, thus, using profits from dirtier energy sources to fund their investment into cleaner energy sources, like renewable power.

For example, both TotalEnergies and Enbridge have been investing in renewable power like solar and wind. TotalEnergies has also been buying electric utility businesses. Enbridge, meanwhile, has also been focused on increasing its exposure to reliable natural gas businesses, like regulated natural gas utility operations, which are expected to be important transitional assets as the world moves in a green direction.

To be fair, neither TotalEnergies nor Enbridge is jumping in with both feet here. They are dipping their toes in, slowly building businesses as the world begins its transition away from carbon fuels. The idea is to change with the world, while many of their peers are simply sticking it out as long as they can with carbon fuels. If you like the idea of hedging your bets, however, TotalEnergies and Enbridge will be good choices for you. With $2,000, you can buy around 33 shares of TotalEnergies and 42 of Enbridge.

You'll be rewarded with big yields, too

The energy transition angle is interesting on its own. But the big story is that TotalEnergies has a lofty 6.5% dividend yield while Enbridge's yield sits at 5.9%. The average energy stock's yield is around 3.4%. And both have long histories of supporting dividends through the market cycle. Enbridge's record is better, with 30 annual increases. TotalEnergies' resilience shone through during the coronavirus pandemic when it maintained its dividend even as its European peers cut their dividends.

There is one caveat here. Both Enbridge and TotalEnergies are foreign companies, so investors have to pay foreign taxes (a portion of which U.S. investors can claim back come tax time). And the actual dividends collected will vary along with exchange rates. But if you want to have energy exposure, collect large dividends, and prepare today for a future that's "cleaner", these two energy giants should be on your radar right now.

Should you invest $1,000 in Enbridge right now?

Before you buy stock in Enbridge, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enbridge wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,863!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 4, 2025

Reuben Gregg Brewer has positions in Enbridge and TotalEnergies. The Motley Fool has positions in and recommends Enbridge. The Motley Fool has a disclosure policy.