📝 usncan Note: 4 Best Energy Stocks To Buy With $500 Right Now
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Energy investments could help diversify your portfolio and protect you against a rise in energy prices while paying dividend yields higher than the rate of inflation.
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The energy sector offers various investment options, including traditional oil and gas companies and those focused on renewable energy. Here are four potential energy stocks to consider buying with $500, aiming for diversification across different segments of the energy industry, assuming you purchase one share of each.
There are many reasons to buy energy stocks: they could be an inflation hedge – especially if a production cut for political reasons sends energy prices higher. Energy companies are also relatively stable stock prices and pay dividends – some of which yield more than the rate of inflation. Finally, there is some innovation in the industry which can drive more rapid revenue growth.
To be sure, the fluctuation in energy prices can also send down the stock prices of energy companies. But demand for energy is not going away.
The 4 Best Energy Stocks To Buy With $500
Below are the four best energy stocks to buy with $500 – ranked in descending order of their 2025 stock market performance and dividend yield. Read this article to learn what these companies do and how owning their stocks could enhance your portfolio.
1. Enbridge (ENB)
- Stock price change (YTD as of 8/7/25): 9.5%
- Q2 2025 Revenue: $10.8 billion
- Q2 2025 Net Income: $1.6 billion
Enbridge Business Overview
Enbridge is a Canadian energy infrastructure company primarily involved in the transportation of oil and natural gas through pipelines, also expanding into solar energy initiatives. The company operates pipelines throughout Canada and the United States, transporting crude oil, natural gas and natural gas liquids.
Why Buy ENB Stock?
Enbridge offers a high dividend yield and has consistently increased dividends over the past three decades. The current dividend yield is 6%. The company’s extensive pipeline network and focus on energy transportation position it as a stable player in the energy market, according to Yahoo! Finance.
2. Chevron (CVX)
- Stock price change (YTD as of 8/7/25): 4.8%
- Q2 2025 Revenue: $44.8 billion
- Q2 2025 Net Income: $2.51 billion
Chevron Business Overview
Chevron is another prominent integrated oil and gas company with a global presence. The company produces crude oil and natural gas. It also manufactures transportation fuels, lubricants, petrochemicals and additives.
Why Buy CVX Stock?
Chevron has a diversified portfolio and a proven track record of increasing dividends. Chevron is considered a good option for long-term investors seeking broad-based exposure to the energy sector. The current dividend yield is 4.3%.
A catalyst for Chevron stock is Morgan Stanley’s belief that the recent closing of its Hess acquisition strengthened the company’s business model. Although Chevron’s long-term outlook is still “less clear than peers,” this uncertainty is balanced by the company’s “leading free cash flow rate of change into 2026,” as noted in Yahoo! Finance.
3. NextEra Energy (NEE)
- Stock price change (YTD as of 8/7/25) 1.4%
- Q2 2025 Revenue: $6.7 billion
- Q2 2025 Net Income: $2.0 billion
NextEra Energy Business Overview
NextEra is the world’s largest producer of wind and solar power and the company operates a major regulated utility. company with about 58 gigawatts of generating capacity and about 14,900 employees throughout the U.S. and Canada.
Why Buy NEE Stock?
NextEra offers strong long-term growth potential in the renewable energy sector. The company expects to grow earnings by 6% to 8% annually through 2027. The current dividend yield is 3.2%.
A catalyst for the stock is a recent report from an analyst setting a price target of $84. UBS expects NextEra Energy to sustain growth at or above the high end of its current 6% to 8% range through 2029. Due to the stock’s 5% price-to-earnings discount based on 2027 estimated earnings per share, UBS wrote NextEra’s risk-reward profile is “meaningfully positive.”
4. Exxon Mobil (XOM)
- Stock price change (YTD as of 8/7/25): -0.7%
- Q2 2025 Revenue: $81.5 billion
- Q2 2025 Net Income: $7.1 billion
Exxon Mobil Business Overview
Exxon is a major integrated oil and gas company involved in exploration, production, refining and marketing.
Why Buy XOM Stock?
Investing in Exxon offers broad industry exposure and a history of dividend growth. The current dividend yield is around 3.6%. Exxon has 10 capital projects underway, three of which are expected to help the company “grow its earnings by over $3 billion into next year,” according to Morgan Stanley analysts,
Bottom Line
Energy investments could help diversify your portfolio and protect you against a rise in energy prices while paying dividend yields higher than the rate of inflation. The four stocks described above – Enbridge, Chevron, NextEra Energy and Exxon Mobil – are in different sectors of the industry and some enjoy growth catalysts that could boost their share value.
