3 Brilliant High-Yield Stocks to Buy Now and Hold for the Long Term

Reuben Gregg Brewer, The Motley Fool

Wed, Apr 30, 2025, 3:05 PM 5 min read

Key Points

Black Hills has a 4.5% yield and is a Dividend King.
Chevron is offering a 4.9% yield with 38 annual dividend hikes behind it.
Enterprise Products Partners has a 6.8% yield backed by 26 annual distribution increases.

If you are a dividend investor looking for high yields today, you may want to consider companies that provide energy in some form. Modern society can't exist without reliable sources of energy and, thus, energy companies are providing a basic necessity. That said, there are different ways to go about investing in high-yield energy-related stocks. Here are three options that have reliable histories of increasing their dividends.

1. Black Hills is a Dividend King

Black Hills (NYSE: BKH) provides electricity and natural gas to roughly 1.35 million customers in parts of Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. It has a 4.5% dividend yield and has increased its dividend annually for a huge 55 consecutive years. Not only is that yield above the utility average of around 2.9%, but Black Hills is one of the few utilities to have achieved Dividend King status.

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If that backdrop isn't enough to entice you to buy Black Hills, then consider some other facts. The utility's customer growth is expanding at nearly three times the rate of U.S. population growth. It has a $4.7 billion capital investment budget to help support reliable access to power for its growing customer base. And management expects earnings to increase by around 4% to 6% year over year for the foreseeable future. The dividend should trail higher along with earnings, as it has done for years. Power to the people and a reliable, high-yield dividend stock for you.

2. Chevron is the diversified, high-yield option for oil

If you aren't in the mood for a utility stock and, instead, want an oil stock, Chevron (NYSE: CVX) has you covered. The integrated energy giant has an attractive 4.9% yield and has increased its dividend annually for 38 consecutive years. Oil is a highly volatile commodity, so that dividend streak is quite impressive. Meanwhile, the average energy stock has a yield of just 3.1% or so.

Chevron has managed to provide a reliable income stream despite the wide swings in oil prices because of its business model. First, it has exposure to the upstream (drilling), midstream (pipelines), and downstream (chemicals and refining). It also has a globally diversified portfolio. Both help the company soften the industry's swings, since different parts of the industry and different global regions have different energy dynamics. Second, Chevron has long used its rock-solid balance sheet as a tool to support its business and dividend through downturns. The energy giant's debt-to-equity ratio was a very low 0.15% or so at the end of 2024, so there is plenty of room to take on debt no matter what happens to oil prices.

3. Enterprise Products Partners is a toll taker

If being exposed to oil prices is too much for you, then consider Enterprise Products Partners (NYSE: EPD). This master limited partnership (MLP) operates one of the largest midstream businesses in North America. It owns the pipelines, storage, processing, and transportation assets that help move oil and natural gas around the world. It largely charges fees for the use of its network, so the price of oil and gas is less important than demand for oil and gas. Demand for energy, because it is so vital, tends to be high even during energy downturns.

Enterprise's distribution yield is a huge 6.8%. The distribution has been increased annually for 26 consecutive years. The yield is likely to make up the lion's share of an investor's return here, but the MLP has a $7.6 billion capital investment plan in the works that should keep the distribution growing. Meanwhile, distributable cash flow covered the distribution by 1.7 times in 2024, leaving ample room for adversity before a distribution cut would be in the cards. If you are trying to maximize the income your portfolio generates, Enterprise Products Partners could be the energy option for you.

Three brilliant ways to find yield in the energy sector

If you are a dividend investor, yield will be a key factor in your stock research process. Black Hills, Chevron, and Enterprise all offer above-average yields. But don't stop with yield; the business backing the dividend is just as important. Black Hills, Chevron, and Enterprise all stand out on that front, too, highlighted by their long histories of annual dividend increases.

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Reuben Gregg Brewer has positions in Black Hills. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

3 Brilliant High-Yield Stocks to Buy Now and Hold for the Long Term was originally published by The Motley Fool

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