Key Points
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ExxonMobil has rewarded investors with a growing dividend for 43 years.
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TotalEnergies is unique among its integrated energy peers because of its push into electricity.
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Enterprise Products Partners has a lofty yield and lets you sidestep commodity risk.
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The energy sector is in the news today because the geopolitical conflict in the Middle East has pushed oil prices higher. This too shall pass, with oil prices likely to eventually fall, just like they have every other time they have spiked higher. The bigger story in energy is the shifting dynamics of demand taking shape. And that is why you should probably stick with industry-leading energy businesses like ExxonMobil (NYSE: XOM), TotalEnergies (NYSE: TTE), and Enterprise Products Partners (NYSE: EPD). Here’s a look at each one.
ExxonMobil is big, strong, and reliable
Exxon is one of the world’s largest energy companies, with a portfolio spread across the upstream (production), midstream (pipeline), and downstream (chemicals and refining) sectors. Its 0.16x debt-to-equity ratio is better than any of its closest peers. And it has rewarded investors with 43 consecutive annual dividend increases. Conservatively managed, Exxon is built to survive the entire energy cycle.
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This is important to keep in mind today because when oil prices are high, investors often forget that they can also go down. If you want to buy and hold an energy stock, Exxon is a solid option. And you get to collect a well-above-market 2.3% dividend yield, as well. However, this is really about owning a company that has the scale to handle whatever gets thrown at it.
TotalEnergies is adjusting now for a different tomorrow
One of the things happening right now is a shift away from dirtier carbon fuels and toward cleaner power sources, such as electricity and renewable power. Exxon hasn’t pivoted yet, but when the time comes, it should be able to do so relatively easily. TotalEnergies isn’t waiting; it is starting to build a division around electricity and clean energy right now.
In 2025, the company’s integrated power business accounted for nearly 12% of adjusted net operating income. Through the first half of 2026, that was down to around 8%, but only because the company’s production and refining operations have benefited from the turmoil in the energy sector.
If you are worried about the long-term trend toward clean energy and aren’t willing to wait for Exxon to pivot, TotalEnergies could be the integrated energy major you want to buy. You get the benefit of oil exposure today, a business diversified across the entire energy value chain, and a head start on the clean energy transition that, basically, no other integrated energy company is currently offering. And all of that comes with a 4.4% dividend yield (U.S. investors have to pay French taxes on the dividend, but some of that can be claimed back come April 15).
Enterprise Products Partners is for income lovers
You can get an even more attractive yield in the energy patch with master limited partnership (MLP) Enterprise Products Partners. This MLP offers a 6.1% yield backed by 28 consecutive annual increases, which is roughly as long as Enterprise has been publicly traded. However, what you don’t get with Enterprise is just as interesting as what you do get.
As one of the largest midstream operators in North America, Enterprise owns a portfolio of energy infrastructure assets. It charges customers fees for the use of its pipelines, transportation, and storage assets. The volume moving through its system is more important than the price of the commodities being moved. And since energy is vital to the world’s normal functioning, volumes tend to be robust even when energy prices are low. Meanwhile, Enterprise has been increasingly focusing on natural gas, which is seen as a transition fuel in the clean energy shift.
If you want energy exposure but don’t feel comfortable with taking on the commodity risk that can entail, Enterprise could be the buy-and-hold solution you’ve been looking for.
Energy isn’t going away, but things are changing
Investors don’t need to worry about oil becoming an obsolete fuel, since an all-of-the-above strategy is the most likely solution to the world’s soaring power demand. Exxon is an industry survivor you can comfortably buy and hold for the long term, whether that’s the next decade or the next three. TotalEnergies is for investors who still want a hedge against the changes taking shape in power, given the company’s early shift into electricity. And Enterprise is a solid option for income investors who know they should own an energy stock, but can’t stomach the inherent volatility of energy prices. Its natural gas focus, meanwhile, should keep it well positioned for at least the next 10 years, if not much longer.
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Reuben Gregg Brewer has positions in TotalEnergies Se. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
