Three Energy Stocks Positioned for Sustainable Growth in the Long Term

The energy sector remains fundamentally important to global economic development, and several energy stocks offer compelling investment opportunities for those seeking dividend income combined with capital appreciation. While traditional energy stocks faced headwinds recently—with the average energy stock in the S&P 500 rising only about 4% year-to-date compared to the broader market’s nearly 18% gain—forward-looking investors recognize that rising energy demand ensures continued opportunities. Here are three energy stocks worth considering for portfolios seeking both yield and growth.

ConocoPhillips: Oil Production Excellence Driving Cash Generation

ConocoPhillips stands out as one of the world’s leading integrated oil and gas producers, distinguished by its diversified portfolio and remarkably low operating costs. The company currently requires an average oil price in the mid-$40s to sustain its capital spending program, with an additional $10 per barrel needed to fund its dividend. With crude trading in the low $60s range, ConocoPhillips is generating substantial surplus cash reserves.

The company’s cost structure should improve meaningfully over the coming years. Following its transformational acquisition of Marathon Oil, ConocoPhillips expects its break-even levels to decline as it realizes cost synergies. More significantly, three massive liquefied natural gas projects, along with the Willow oil development in Alaska, are scheduled for completion by 2029. The company projects these catalysts will add approximately $6 billion in incremental annual free cash flow by 2029 (assuming a $60 oil price)—a substantial increase for a company that generated $6.1 billion in free cash flow through the first nine months of this year.

This expanding cash generation provides the foundation for shareholder returns. ConocoPhillips recently increased its dividend payout by 8% and aims to rank in the top 10% of S&P 500 companies for dividend growth. The company also intends to continue repurchasing shares, creating a dual mechanism for value creation. The combination of rising cash flow and structured capital returns positions ConocoPhillips to deliver strong total returns over the next several years.

Oneok: Midstream Infrastructure Expansion and Rising Yields

Oneok operates as one of the nation’s largest energy midstream companies, generating dependable cash flows supported by long-term contracts and regulated rate structures. This stability underpins a high-yielding dividend offering a current yield of 5.6%.

The company has pursued an aggressive expansion strategy through strategic acquisitions. It acquired Magellan Midstream Partners in 2023 to broaden its exposure to crude oil and refined petroleum products infrastructure. This was followed by the acquisition of Medallion Midstream and a controlling stake in EnLink for $5.9 billion in 2024, with the company completing its full acquisition of EnLink for an additional $4.3 billion earlier this year.

Oneok anticipates capturing hundreds of millions in cost savings and synergies from these transactions over the next several years. Beyond acquisitions, the company has authorized organic expansion initiatives, including construction of the Texas City Logistics Export Terminal and the Eiger Express Pipeline, projects expected to enter service by mid-2028. These growth catalysts should provide sufficient cash flow to support 3% to 4% annual dividend growth. For income-focused investors, this combination of substantial current yield and predictable dividend increases represents a compelling profile.

NextEra Energy: Utilities and Clean Power for the Future

NextEra Energy operates as a leading electric utility and energy infrastructure development company, positioning itself well within the green energy stocks category through its mix of regulated utility operations and renewable energy investments. Its Florida-based utility subsidiary generates steadily rising rate-regulated earnings, while its energy resources division produces growing profits backed by long-term contracts and regulatory protections. This dual-platform model currently supports a 2.8% dividend yield.

The company is investing substantially to meet rising electricity demand. Its Florida utility plans to invest more than $100 billion through 2032 to address the state’s expanding power requirements. Concurrently, the energy resources platform is allocating billions toward transmission line construction, gas pipeline expansion, and new clean power project development. These investments position the company to achieve more than 8% compound annual earnings-per-share growth over the next decade.

This robust earnings trajectory supports NextEra Energy’s dividend strategy: a projected 10% increase in the upcoming year, followed by 6% compound annual growth through at least 2028. The combination of earnings expansion and income growth creates the potential for substantial total returns. NextEra’s positioning within the renewable and clean power transition adds to its appeal for investors seeking exposure to both traditional and next-generation energy infrastructure.

Why These Energy Stocks Deserve Investor Attention

ConocoPhillips, Oneok, and NextEra Energy represent three distinct yet complementary ways to participate in the energy sector. Each company demonstrates clear paths to revenue and earnings expansion, supported by substantial free cash flow generation or regulated revenue streams. The three companies collectively illustrate how energy stocks continue to offer attractive dividend yields while maintaining solid growth catalysts. Whether through international oil production optimization, midstream infrastructure consolidation, or utility-led renewable transition, these stocks provide multiple avenues for long-term investors to capture both income and appreciation. The energy industry’s essential role in global economic development ensures these green energy stocks should remain relevant components of a diversified portfolio.