Energy Investment Opportunities: Looking Beyond Just Solar Energy Stocks

The energy sector is undergoing a profound transformation, with solar energy stocks capturing significant investor attention. However, as the industry diversifies between renewables and traditional energy producers, several established companies are positioned to deliver impressive returns. Here are three compelling energy stocks that deserve serious consideration for your portfolio in this evolving landscape.

For much of the past year, traditional energy investments have been overshadowed by the renewable energy boom. The average energy stock in the S&P 500 has only advanced roughly 4% year-to-date, significantly trailing the broader market’s nearly 18% surge. Lower crude prices dampened returns across the sector. Yet despite this underperformance, energy remains fundamental to the global economy—a reality that solar energy stocks alone cannot address. Understanding this dynamic reveals why diversification across different energy segments remains strategically sound.

ConocoPhillips: The Cash Flow Generator

ConocoPhillips stands as one of the world’s premier oil and gas exploration and production companies. The firm has assembled one of the sector’s most extensive and diversified asset portfolios while maintaining some of the industry’s lowest operating costs.

Currently, ConocoPhillips requires an average oil price around the mid-$40s per barrel to maintain its capital programs and approximately $10 additional per barrel to sustain its dividend. With crude hovering in the low $60s, the company is generating exceptional surplus free cash flow. Over the coming years, the company expects its cost structure to improve further through synergies captured from the Marathon Oil megadeal completed last year.

Looking ahead to 2029, ConocoPhillips plans to bring online three major liquefied natural gas projects and the Willow oil operation in Alaska. These developments are projected to inject an additional $6 billion in annual free cash flow by decade’s end, assuming a $60 oil environment. For context, the company generated $6.1 billion in free cash flow through the first nine months of 2025—making the projected increase particularly meaningful.

This expanding cash generation provides ConocoPhillips with substantial flexibility to increase its 3.4%-yielding dividend. The company recently boosted its payout by 8% and targets dividend growth within the S&P 500’s top 10%. Combined with ongoing share repurchase activity, this cash return strategy positions ConocoPhillips to deliver robust total returns to shareholders over the near term.

Oneok: The Midstream Consolidator

Oneok operates as one of America’s largest energy midstream infrastructure platforms. As a pipeline company, it benefits from highly stable cash flows underpinned by long-term contracts and government-regulated rate structures—a model that supports its attractive 5.6%-yielding dividend.

The company has spent recent years strategically building its midstream network through a series of transformational acquisitions. In 2023, Oneok acquired Magellan Midstream Partners to expand into crude oil and refined products infrastructure. The company subsequently purchased Medallion Midstream and took controlling stakes in EnLink before completing full ownership of EnLink by mid-2025. These transactions totaled approximately $10.2 billion in combined value.

Oneok projects hundreds of millions in annual cost synergies and operational efficiencies from these integration initiatives. Additionally, the company has green-lit several organic expansion projects, including the Texas City Logistics Export Terminal and the Eiger Express Pipeline, both expected to reach commercial operation by mid-2028.

These growth vectors should enable Oneok to increase its already robust dividend by 3-4% annually. The combination of yield plus growth could generate attractive total returns for disciplined income-focused investors.

NextEra Energy: The Utility-Renewable Hybrid

NextEra Energy operates as a leading electric utility and energy infrastructure developer, positioning itself at the intersection of traditional regulated utilities and clean energy expansion. The company’s Florida-based utility generates steadily rising earnings from rate-regulated operations, while its energy resources division produces growing profits backed by long-term contracts and regulated return structures.

NextEra’s dividend yield currently stands at 2.8%, modest compared to its pure-play energy peers but supported by strong earnings growth prospects. The company is investing aggressively to meet rising electricity demand across the United States. Its Florida utility alone plans to deploy more than $100 billion by 2032 to support the state’s expanding energy needs.

Meanwhile, NextEra’s energy resources business is deploying billions to construct transmission infrastructure, expand natural gas capacity, and develop new renewable power facilities—projects that generate earnings regardless of whether power sources are traditional or clean. Management projects this investment program will drive compound annual earnings-per-share growth exceeding 8% through 2036.

This growth trajectory supports a 10% dividend increase planned for next year, with subsequent increases targeted at a 6% compound annual rate through at least 2028. Such earnings-driven income expansion could enable NextEra to deliver substantial total returns in the coming years.

The Case for Energy Diversification

While solar energy stocks have attracted considerable investor focus, the reality is that the global energy system requires multiple sources to function efficiently. ConocoPhillips, Oneok, and NextEra Energy collectively represent three distinct but equally vital energy segments: exploration and production, infrastructure and midstream, and utilities with renewable integration.

Each of these companies possesses clearly visible growth catalysts ahead. Strong free cash flow generation, strategic acquisitions, and capital investment programs should collectively enable these three energy stocks to continue expanding their already-attractive dividend payouts. This income plus capital appreciation combination positions them to deliver powerful returns for investors who recognize that energy transition is complementary to, not a replacement for, traditional energy assets.

The energy sector’s recent quiet performance masks genuine investment opportunity for those patient enough to look beyond headlines dominated by solar energy stocks and renewable narratives.