These birds of a feather can add reliable income to your nest egg.
If you’re seeking exceptionally juicy dividend yields, the energy sector is a great place to start your search. Here are three high-yield energy stocks to buy in February.
1. Enbridge
Enbridge (ENB +1.62%) offers a forward dividend yield of 5.6%. The company has increased its dividend for an impressive 30 consecutive years. It also continues to generate strong free cash flow to keep the dividends flowing.
Today’s Change
(1.62%) $0.80
Current Price
$50.13
Key Data Points
Market Cap
$109B
Day’s Range
$49.35 – $50.22
52wk Range
$39.73 – $50.54
Volume
217K
Avg Vol
4.4M
Gross Margin
32.82%
Dividend Yield
5.37%
While Enbridge is rightly categorized as an energy stock, it’s also a utility stock. In addition to operating over 18,000 miles of liquids pipelines and over 19,200 miles of natural gas pipelines, the company ranks as the largest natural gas utility by volume in North America. It has also expanded into renewable energy, with projects either in operation or under construction with a capacity to generate over 7.2 gigawatts of electricity.
JP Morgan (JPM +0.79%) recently downgraded Enbridge due to sluggish growth in its crude oil business. While the stock may not deliver tremendous growth, it should provide stability and reliable income.
2. Energy Transfer
If Enbridge’s midstream business sounds appealing, you’ll probably also like another pipeline stock — Energy Transfer (ET 0.22%). This limited partnership (LP) operates over 140,000 miles of pipeline across the U.S. that transport crude oil, natural gas, natural gas liquids (NGLs), and refined products.
Energy Transfer
Today’s Change
(-0.22%) $-0.04
Current Price
$18.37
Key Data Points
Market Cap
$63B
Day’s Range
$18.10 – $18.47
52wk Range
$14.60 – $20.90
Volume
18M
Avg Vol
16M
Gross Margin
12.85%
Dividend Yield
7.16%
Energy Transfer’s distribution yield of 7.3% should be a big plus for income investors. The boom in the construction of data centers hosting artificial intelligence (AI) systems is also providing a nice tailwind for the company. Energy Transfer has signed agreements to supply natural gas to multiple data center operators over the past 12 months, including CloudBurst, Fermi America (NASDAQ: FRMI), and Oracle (ORCL 5.17%).
Image source: Getty Images.
3. Enterprise Products Partners
Enterprise Products Partners (EPD +1.65%) is another midstream leader that has been an income machine. Its distribution yield is roughly 6.3%. Enterprise Products Partners has also increased its distribution for 27 consecutive years.
Enterprise Products Partners
Today’s Change
(1.65%) $0.57
Current Price
$35.20
Key Data Points
Market Cap
$76B
Day’s Range
$34.47 – $35.34
52wk Range
$27.77 – $35.34
Volume
10M
Avg Vol
4.2M
Gross Margin
13.52%
Dividend Yield
6.18%
This LP, like Energy Transfer, has growth opportunities related to AI. Enterprise Products Partners plans to capitalize on these opportunities, with around $4.8 billion of projects under construction. Several of these projects will begin operations in 2026.
Investors shouldn’t count on stellar growth from Enterprise Products Partners this year, though. CEO Randy Fowler acknowledged in the recent quarterly earnings call that only “modest growth” is in store for 2026. However, management projects 10% earnings before interest, taxes, depreciation, and amortization (EBITDA) and cash flow growth in 2027.
JPMorgan Chase is an advertising partner of Motley Fool Money. Keith Speights has positions in Enbridge, Energy Transfer, and Enterprise Products Partners. The Motley Fool has positions in and recommends Enbridge, JPMorgan Chase, and Oracle. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.