Key Points

• The energy sector is going through a transition that will likely take decades.

• TotalEnergies is using its oil profits to fund its clean energy investments.

• Enbridge is focused on providing both carbon-based and clean energy.

• 10 stocks we like better than Enbridge ›

There are short-term gyrations that will always be present in the energy sector, given the volatile nature of oil and natural gas prices. And then there are longer-term trends that can be seen as a headwind or an opportunity.

I prefer to see the silver lining on the clean energy cloud by owning high-yield energy stocks TotalEnergies (NYSE: TTE) and Enbridge (NYSE: ENB). Here's why you might want to buy them, too.

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TotalEnergies is an integrated giant

TotalEnergies competes with energy giants ExxonMobil, Chevron, Shell, and BP. They all have the same basic business model, which entails owning assets across the energy value chain, from production (upstream) to transportation (midstream) and on to chemicals and refining (downstream). This diversification helps to soften the peaks and valleys that come from volatile energy prices.

Image source: Getty Images.

The big point of differentiation between TotalEnergies and its closest peers is that the French energy giant has made a strong commitment to investing in electricity and clean energy. Exxon and Chevron have basically chosen to stick with their core. Shell and BP both announced plans to invest in clean energy, but have since walked those plans back. TotalEnergies, if anything, has increased the pace of its investment. And, notably, it maintained its dividend when it announced its clean energy push while Shell and BP both cut their dividends when they made the same announcements.

This is still only a relatively small part of TotalEnergies' business, at roughly 10% of adjusted operating income from the company's business segments in 2024. That was up 17% from 2023 and the only segment that saw an increase, highlighting the diversification value this business offers.

That said, this is not a short-term play. TotalEnergies is looking at the long-term shifts in the industry and preparing now for a future that includes dramatically more electricity. Just as one example, the U.S. is expected to see electricity increase from 21% of end energy use in 2020 to 32% by 2050. That's a huge change and one that is likely to be seen the world over. Add in TotalEnergies' lofty 6.3% dividend yield and I'm a happy shareholder. (U.S. investors have to pay French taxes on the dividend, but can claim some of that back come tax time.)

Enbridge's fee-based business has a clean energy twist

TotalEnergies provides me with direct exposure to oil and natural gas. Canadian midstream giant Enbridge is more about a boring and consistent energy-adjacent dividend. The lofty 6% or so dividend yield is backed by the company's portfolio of fee-generating energy infrastructure assets. The largest contributions come from Enbridge's oil and natural gas pipelines, which is perfectly fine by me. These carbon fuels will likely be needed for decades to come.

That said, Enbridge has been increasingly investing in clean energy and regulated natural gas utilities. Together these businesses represent about a quarter of the company's earnings before interest, taxes, depreciation, and amortization (EBITDA). But they keep the company moving in the same direction as the world around it on the energy front.

The most notable thing here, however, is that Enbridge's natural gas utility and clean energy businesses are also consistent producers of cash flow. Regulation is the reason for that within the natural gas utility operation while long-term supply contracts are the core support in the clean energy segment. And so, Enbridge is changing with the world while continuing to hue to its own focus on generating reliable cash flows.

I'm letting others do the work for me

I don't really know which clean energy technology is going to be the big winner. Nor do I know the time frame for the energy transition. So I've chosen to invest in two "old" energy stalwarts that provide me with generous dividends and that are preparing today for a future that will include more clean energy. That way I can just collect the dividends while I leave the hard work of figuring out the clean energy transition up to TotalEnergies and Enbridge.

Should you invest $1,000 in Enbridge right now?

Before you buy stock in Enbridge, consider this:

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*Stock Advisor returns as of July 21, 2025

Reuben Gregg Brewer has positions in Enbridge and TotalEnergies. The Motley Fool has positions in and recommends Chevron and Enbridge. The Motley Fool recommends BP. The Motley Fool has a disclosure policy.

Key Points

• TotalEnergies beat on revenue for the quarter, but fell short of the consensus analyst estimate for profitability.

• Not surprisingly, it was affected by the slump in global oil prices.

• 10 stocks we like better than TotalEnergies ›

The stock market wasn't particularly energetic when it came to fuel and chemicals conglomerate TotalEnergies (NYSE: TTE) on Thursday. The company's stock took a hit following its release of second-quarter earnings, and it closed the day down almost 3%. Other stocks did better, as the S&P 500 (SNPINDEX: ^GSPC) eked out a marginal gain.

Oil price slump

TotalEnergies, which is headquartered in France but reports in the energy industry's standard currency of U.S. dollars, published its latest set of financial figures that morning. The company's net revenue was slightly under $44.7 billion, comparing unfavorably to the nearly $49.2 billion it booked in the same period of 2024.

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Image source: Getty Images.

That top-line result was more than high enough to trounce the average analyst estimate, which was a bit under $39.9 billion.

Yet the erosion in non-GAAP (generally accepted accounting principles) adjusted net income was more drastic. That critical line item fell by 21% year over year to $3.6 billion ($1.57 per share). Worse, that per-share figure was notably below the consensus pundit projection of $1.67.

TotalEnergies suffered from a general decline in oil prices, which it said slid by 10% during the quarter. It put a positive spin on its recent struggles by quoting CEO Patrick Pouyanne as saying that the company "continued to successfully execute its balanced multi-energy strategy, supported by sustained growth in hydrocarbon and electricity production."

A gloomy outlook

In TotalEnergies's outlook for the current (third) quarter, the company waxed bearish about the prospects for its industry. It said that due to geopolitical and economic developments, oil prices are volatile at the moment, with the industry coping with an "abundant" supply (which, all things being equal, tends to dampen prices).

While it forecast that it would spend a net amount of $17 billion to $17.5 billion in investments over the course of this year, it did not provide any revenue or profitability guidance in its earnings release.

Should you invest $1,000 in TotalEnergies right now?

Before you buy stock in TotalEnergies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TotalEnergies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,046,799!*

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Points

• The energy sector is volatile, but some companies are built to survive that volatility.

• Chevron has a lofty yield and a long history of returning value to investors via dividend hikes.

• TotalEnergies has a lofty yield and a business that is changing with the world around it.

• 10 stocks we like better than Chevron ›

Chevron (NYSE: CVX) is offering investors a 4.7% dividend yield today. TotalEnergies' (NYSE: TTE) yield is even higher at 6.3%. That compares to an energy industry average of just 3.5%. But lofty yields are just one reason to like Chevron and TotalEnergies. Here are a few more that may prompt you to buy one or both of these energy industry giants right now.

Chevron and TotalEnergies are integrated

The one thing every investor needs to understand about the energy sector right up front is that it is inherently volatile. Oil and natural gas are commodities, and their prices swing widely and quickly. That's why I prefer to invest in the energy sector via integrated energy stocks. Most conservative investors, and likely most income investors, should probably follow my lead.

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Image source: Getty Images.

Chevron and TotalEnergies basically have exposure to the entire value chain, from production to transportation, chemicals, and refining. Each segment of the industry operates a little differently, with the diversification across the sector helping to soften the fluctuations in energy prices. To be fair, commodity prices are still the driving force behind Chevron's and TotalEnergies' businesses and stock prices. But integrated energy companies tend to weather the swings better than pure-play drillers and chemical and refining companies.

Chevron has a great dividend record and a solid foundation

That said, Chevron and TotalEnergies are not interchangeable. For example, Chevron has increased its dividend annually for 38 consecutive years. TotalEnergies hasn't managed anything near that level of dividend consistency (more on TotalEnergies' dividend below). Part of the reason for Chevron's dividend success is its focus on operating with a strong balance sheet.

At the end of the first quarter of 2025, Chevron's debt-to-equity ratio was roughly 0.2 times. That's low for any company and is second-best among its closest peers. That gives management the leeway to take on debt during industry weak patches so it can continue to support its business and pay its dividend. When oil prices recover, as they always have historically, leverage is reduced in preparation for the next downturn.

For more conservative dividend investors, Chevron is a solid choice in the energy sector. There will be ups and downs, but the dividend is highly reliable.

TotalEnergies is focused on change

That said, I own TotalEnergies. There are a couple of caveats here, though. First, U.S. investors must pay French taxes on the dividends collected, which reduces the actual income stream they'll receive. Second, TotalEnergies has a history of investing more aggressively. That includes investments in politically volatile countries and, right now, in the development of clean energy. Chevron has largely stuck to its energy core.

The clean energy investments being made are why I've chosen to own TotalEnergies. Essentially, the French energy giant is using its carbon fuel profits to invest in the energy transition that is shifting the world more and more toward electricity. This is going to be a decades-long shift, and an all-of-the-above approach is likely to be the final solution on the energy front. However, I like that TotalEnergies is working on an all-of-the-above strategy right now.

What really sets TotalEnergies apart, however, is that it has made this transition without cutting its dividend (it has actually been increasing it annually of late). European peers BP and Shell announced similar plans and used the business shift to justify dividend cuts. Then, they both walked back their clean energy plans. TotalEnergies has, if anything, sped up its investments in the space.

In other words, TotalEnergies is executing well in a changing world, which is exactly why I want to own it for the long term.

Energy prices have been weak

The interesting thing about both Chevron and TotalEnergies is that oil prices have been relatively weak of late. And that has put downward pressure on each company's shares, lifting their yields to fairly attractive levels. For more conservative dividend investors, Chevron is probably the better choice. But for investors like me who are willing to take on a little more risk to gain exposure to clean energy, TotalEnergies could be a good call right now, too.

Should you invest $1,000 in Chevron right now?

Before you buy stock in Chevron, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chevron wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $687,764!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $980,723!*

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See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

Reuben Gregg Brewer has positions in TotalEnergies. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends BP. The Motley Fool has a disclosure policy.

• Some parents still have kids write thank-you notes and others would be glad to never see one again.
• Parenting and etiquette experts agree it's important to teach kids gratitude.
• However, that can be done through a text or video message, they said.

Picture throwing a birthday party for your kids. They're excitedly opening presents, and you're keeping track of who gifted what. After the party ends, while your child is napping (or bouncing off the walls from too much sugar — no judgment), you're slowly cleaning the house.

Your eye catches that list, and you start to think about the arduous task of thanking everyone for the Lego sets and stuffies. There's a question that's been looming over your head like a cloud, now threatening to rain — do you force your child to write thank-you notes, or not?

The practice of expressing written thanks in some way has been around for centuries and, perhaps surprisingly, in an age of ecards, texts, and FaceTime, the greeting card industry is one of growth. And thank-you notes are the third most popular cards after birthday and sympathy, and women buy the bulk of them at around 85%. However, whether they're bought by child-free folks, parents who still believe in handwritten thanks, or parents begrudgingly making the purchase, that's a harder question to answer.

Whether you're the type who always has monogrammed notes on hand and covets quality cardstock, or you're a parent who would be most grateful never to have to write a note of thanks again, there's some common ground: thank-you notes have become strangely controversial. The more rebellious gift recipients say the expectation to write notes is outdated and pedantic, while proponents say a handwritten token of gratitude is simply manners 101.

Thank-you notes take time and energy, but some still think they're important

Emily Genser, 48, says sending a thank you in the mail is an essential practice. Her 13-year-old son has been diligently working his way through about 75 thank-you notes for gifts he received at his bar mitzvah. Gesner, who lives in Connecticut, is OK with him taking his time — her son has been filling out five notes every day — but feels it's essential that he handwrite a formal card.

"I think there's something to be said for the time it takes for my kids to do it," said Genser.

That time reflects the effort that went into sending a gift and attending the event, said Gesner, who is also a mom to a 15-year-old. She wants her kids to "understand that things don't come to you out of nowhere," she said. "That there's a person behind every gift."

As a fellow mom of two — my daughters are 7 and 11 — I agree with Gesner's sentiment (I do, in fact, keep quality cards on hand for just this purpose). Yet, I lack her follow-through. My oldest's birthday was last month. When she received a card with $20 in the mail from a family member, I told her she could only spend the money after sending a thank-you note. The money is still untouched, and I haven't had the energy to push her to send the notes.

How to have kids express their thanks has been a hot topic

When I contacted experts about thank-you notes, I was relieved to see that those I spoke with also have a nuanced approach to thank-you notes. They said it's important that kids express gratitude, but less important that they do that by writing a note.

"Forcing kids to write a formal note when it feels like a chore kind of misses the point," Monika Roots, a child psychiatrist, mom of two, and cofounder at Bend Health, said. "What matters more is helping them say thank you in a way that feels genuine, whether that's a quick video, a simple message, or even a drawing. It's less about the format and more about building a habit of gratitude that they'll carry with them as they grow."

Even a quick thanks can build a connection

Roots' advice was music to my ears. In addition to the card and cash, my daughter received a birthday package from her uncle. I took a video of her opening the gift (an instant-print camera) and snapping a photo with it, then quickly sent it to my brother. He loved seeing his niece's genuine joy, and neither my daughter nor I had to put the effort into writing a card that he would just toss.

Although it was easier than sending a card, this type of thank you can be just as impactful, said etiquette expert Genevieve Dreizen, author of "Simple Scripts to Support Your People: What to Say When You Don't Know What to Say."

"Gratitude builds connection," Dreizen said. "It makes people feel seen, and it strengthens relationships over time. The act of saying thank you — whether it's a scribbled note or a phone call — teaches empathy, mindfulness, and reflection, especially for children."

Dreizen said etiquette should be rooted in values, not performance. If your kids prefer making a fun video or a colorful drawing to express their thanks, that's OK. In fact, if they're working on something they're excited about, it may be even more appreciated.

"What matters is teaching them to acknowledge kindness in ways that feel authentic to them," she said.

Prompts and snacks can help get thank-you notes done

If you're a parent who feels strongly about traditional thank-you notes, that's also fine. There are ways that you can make the whole process feel less like a chore for both you and your kids, like doing just a few cards at a time, having fun stationery and pens, or working on them while sharing a snack.

Offering a prompt or script can also help, according to parenting coach and mom Jenn Brown. She suggests a fill-in-the-blank type note, like this:

Dear [Name], Thank you for [the gift or gesture]. It really meant a lot because [personal reason]. I felt [emotion] when I opened/received it. Thanks again!

"It's not about getting every word perfect," Brown said. "It's about helping them build the habit of expressing appreciation in a way that feels doable."

The energy sector can be a great place for investors to collect a lucrative passive income stream. Many energy companies generate lots of excess cash flow, giving them the money to pay hefty dividends. Several companies in the sector also have long dividend growth streaks.

TotalEnergies (NYSE: TTE), Chevron (NYSE: CVX), and Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) stand out to a few Fool.com contributors as excellent energy stocks to buy for passive income. They pay high-yielding and steadily rising dividends. Here's a look at why they could deliver years of passive income.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

TotalEnergies is acting now so it can thrive through the transition

Reuben Gregg Brewer (TotalEnergies): For most investors, the best way to invest in the energy sector will be to buy an integrated energy company. That's because these businesses have exposure to the entire industry, from the upstream (drilling) through the midstream (pipelines) and into the downstream (chemical and refining). This diversification helps to soften the peaks and valleys of an industry that is known for being volatile. But all of the major integrated energy companies are a little different, with TotalEnergies standing out in a very important way.

In 2020, European peers BP and Shell cut their dividends as they announced plans to increase investment in clean energy assets. TotalEnergies made the same commitment but maintained its dividend. Since that point, both BP and Shell have walked back their clean energy plans. TotalEnergies has increased the pace of its investment in electricity and even created a new division so investors could more easily monitor its progress. The new integrated power division grew operating income 17% in 2024.

Simply put, TotalEnergies is a well run oil and gas company and, increasingly, a well-run clean energy company, too. If you want years of passive income, the French energy giant is positioning itself to not just weather the clean energy transition but also to thrive as the world increases its use of non-carbon fuels. And you can collect a dividend yield of 6%, higher than all but one of its closest peers, if you buy it today. (Note that U.S. investors have to pay French taxes on the dividends they receive, a portion of which can be claimed back when filing U.S. taxes.)

Stress-tested to thrive on lower oil prices

Matt DiLallo (Chevron): Chevron's dividend yield is approaching 5%. That's due to a nearly 20% decline in the oil company's stock price from its recent peak. Shares of the oil giant have sold off because of lower crude prices this year. The price of Brent crude, the global oil benchmark, has fallen more than 10% to around $65 a barrel because of fears that tariffs could slow economic growth and reduce oil demand.

While lower oil prices will have an impact on Chevron's cash flow, they won't affect its ability to continue increasing its high-yielding dividend. The oil giant has stress-tested its business for a downside scenario where Brent averages just $50 a barrel from 2025 through 2027. Under that scenario, Chevron would produce enough cash to cover its investment program and pay a growing dividend with room to spare. Meanwhile, it would have the capacity to buy back shares at the low end of its $10 billion to $20 billion annual target range thanks to its strong balance sheet.

Chevron is on pace to add $9 billion to $10 billion to its annual free cash flow by 2026 in an environment where Brent is in the $60- to $70-a-barrel range. That would enable the company to buy back shares toward the upper end of its target range at the current price point. On top of that, there's additional upside if the company closes its needle-moving acquisition of Hess, which would more than double its free cash flow by 2027 at $70 oil.

Chevron's low-cost production, visible upside catalysts, and strong balance sheet put it in an excellent position to continue increasing its dividend, which it has done for 38 straight years. The oil company has grown its payout faster than the S&P 500 and its closest peer over the past five years. These factors suggest that an investment in Chevron will create a lot of passive income over the years to come.

Riding the renewable energy boom to reward investors

Neha Chamaria (Brookfield Renewable): Brookfield Renewable is one of the largest publicly traded renewable energy companies in the world with a massive portfolio spanning hydropower, wind, solar, and distributed energy and storage. The company also has a large global footprint and is embarking on a big growth journey that should drive its cash flows and dividends higher in the coming years.

To put some numbers to that, Brookfield Renewable is planning to invest $8 billion to $9 billion over the next five years and expects to grow its funds from operations (FFO) per unit by over 10% annually in the long term. That's not an overly ambitious goal if you think it is, simply because almost 6% growth could already be embedded in the company's development pipeline and inflation escalation clauses in its long-term contracts. For those in the know, Brookfield Renewable sells electricity under long-term contracts, and almost 90% of its cash flows are contracted for an average of 14 years.

That also makes Brookfield Renewable's cash flows highly stable and predictable, which is why management has been able to set a goal of increasing its dividend annually by 5% to 9% in the long term. Even a 5% annual dividend growth could create years of passive income for investors if they reinvest the dividends. Investors who own the corporate shares of Brookfield Renewable also get to enjoy a high 5%-plus dividend yield now.

Should you invest $1,000 in Chevron right now?

Before you buy stock in Chevron, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chevron wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

Matt DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, and Chevron. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Brookfield Renewable Partners and TotalEnergies. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends BP, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.