Top 3 High-Dividend Energy Stocks Favored by Wall Street Analysts in 2025

Why Are High-Dividend Energy Stocks Gaining Popularity?

As the global financial market faces mounting pressure from recession fears and volatile U.S.–China tariff policies, investors are turning to safer, more stable options. According to leading Wall Street analysts, energy stocks with strong cash flows and attractive dividend yields are becoming top picks in 2025.

Here are three standout stocks highly rated by top analysts on TipRanks – a platform ranking the performance of over 9,400 financial experts worldwide.

1. Energy Transfer (ET) – The “Dividend King” of the Energy Sector

Dividend Yield: 7.5%

Dividend Growth: +3.2% year-over-year

Q1 2025 Earnings Report: Expected May 6

Why Invest:

Owns over 130,000 miles of pipelines and related infrastructure

Generates stable revenue, mostly from fee-based cash flows

Benefits from natural gas price spreads and AI/data center energy demand

Rating: Buy – Price Target: $22

2. Williams Companies (WMB) – A Top Pick for LNG & AI Growth Trends

Dividend Yield: 3.4%

2025 Dividend: $2/share (up 5.3%)

Q1 2025 Earnings Report: Expected May 5

Key Strengths:

Focused on natural gas – less impacted during economic downturns

Poised to benefit from LNG exports and AI/data center expansion

Rating: Buy – Price Target: $63

3. Diamondback Energy (FANG) – Strong Cash Flow, Attractive Returns

Dividend Yield: 4.5%

Base Dividend 2025: $4/share (up 11%)

Estimated Q1 2025 Free Cash Flow: ~$1.4 billion

Why It Stands Out:

Specializes in oil & gas in the Permian Basin

Low production costs with high capital efficiency

Ongoing dividend payments and aggressive stock buybacks

Rating: Buy – Price Target: $166

4. 2025 Investor Insights:

For those seeking safe, low-volatility, and steady income-generating investments in 2025, high-dividend energy stocks are a strong option. Amid rising interest rates, inflation, and unpredictable trade policies, holding stocks with stable cash flows offers a valuable hedge for any portfolio.

According to CNBC

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