For most of last year, oil prices hovered between $50 and $70 a barrel, and prices at the pump were generally stable and cheap. But that all changed in late February when the current war broke out between the United States, Israel, and Iran.
Oil was at $60 a barrel in late February, but the closure of the Strait of Hormuz and the chaos of the conflict pushed it to $109 a barrel in early April. Prices have since declined but remain high around $85-$95.
Peace talks are underway, but despite an extended ceasefire, oil prices are likely to remain high for some time due to disruptions to Persian Gulf shipping. Especially given that Iran had lost track of some sea mines placed in the strait when it was initially closed.
This is an unfortunate reality of our global energy markets. But if you give both these then it can be very lucky for you high yield A look at energy dividend stocks.
Image Source: Getty Images.
1. Energy Products Partners: Its distribution is 5.75%
is the first Enterprise Product Partners (EPD +0.58%)which technically isn’t pay dividends. this is one Master Limited Partnerships And pays the distribution in return. However, it works the same way as a dividend. And right now, Enterprise Products Partners’ distribution is at 5.75%.
Enterprise owns and runs a massive network oil and gas Pipelines, refineries and storage facilities throughout the United States, with a presence in most of America’s major oil fields. As a midstream company, it does not extract oil or gas from the ground. It simply transports it to where it can be refined and sent for use. You can think of Enterprise and companies like it as the energy provider equivalent of the interstate highway system. And the enterprise saw record volumes in its processing plants and pipelines last year.
Enterprise Product Partners
today’s change
(0.58%) $0.22
current price
$38.22
key data points
market cap
$83B
day limit
$38.08 -$38.57
52wk range
$29.66 -$39.73
volume
17K
average volume
5M
gross margin
12.86%
dividend yield
5.69%
The net profit margin of Enterprise is 11.17% and it has remained around this figure continuously for many years. Its debt-to-equity ratio is also stable at 1.14. As far as its distribution is concerned, it is the main way the enterprise returns value to shareholders. It has increased its annual dividend for 29 consecutive years, and with a relatively high, but healthy, forward payout ratio of 69.24%, it should be able to continue its growth streak for the foreseeable future.
At around 6% yield, it’s worth your consideration to collect some hefty profits while you sit back and wait for energy markets to return to normal.
2. Enbridge: Bridging the gap with 5.25% yield
Canadian enbridge (ENB 1.59%) Enterprise Products is a midstream company like Partners – it just works at scale. Its pipelines and refineries link together the vast energy markets of Canada and the United States. However, unlike Enterprise, Enbridge has also entered the renewable energy sector, owning multiple solar plants and battery storage facilities throughout the United States, wind farms in the US, Canada and Western Europe, and even a geothermal plant in Oregon.
Also, unlike Enterprise, Enbridge is a typical dividend-paying company, so you don’t have to worry about any potential differences between company dividends and partnership distributions.
today’s change
(-1.59%) $-0.85
current price
$52.45
key data points
market cap
$114B
day limit
$52.45 -$53.46
52wk range
$43.59 -$55.44
volume
3.4K
average volume
5.2M
gross margin
32.74%
dividend yield
5.22%
The company ended 2025 at the top of management’s guidance and reaffirmed its 2026 guidance, which is set to continue its 8% EBITDA compound annual growth rate (CAGR) from 2023 and its 3% distributable cash flow (DCF) per share CAGR over the same time frame.
Enbridge has an enterprise-wide net profit margin of 11.95% and a higher debt-to-equity ratio of 1.61. However, Enterprise sees a 6.4% revenue decline in 2025, while Enbridge managed 21.92% revenue growth.
These companies are very similar, and that continues in their dividends. Enbridge has raised its dividend for 30 consecutive years, and at current prices it yields 5.25%. However, Enbridge’s payout ratio is a much less healthy 117% at the moment. Its payout ratio has been very high in the past (it was 268% in 2022). On a GAAP basis, this figure is certainly high, but Enbridge aims to pay out 60%-70% of its distributable cash flow (a non-GAAP figure) to shareholders, specifically to attract income-focused investors. Non-GAAP measures show that the payout is safe, and Enbridge has a 31-year streak of dividend increases.
Both of these stocks provide a solid way to profit as we wait and see what the energy markets do as the situation in the Persian Gulf continues.