4 Dividend Energy Stocks to Buy in March

Energy stocks can be great for dividend income. The global economy needs oil, gas, and electricity around the clock, so the companies in this space are always humming. However, the energy industry can be highly volatile at times, and the ongoing war in the Middle East is a prime example.

Oil and gas prices can fluctuate, as can energy stock share prices. The best plan is usually to focus on the long term, buying into the industry's top names for their proven ability to weather the ups and downs.

Here are four outstanding names across the oil and gas, pipeline, and nuclear energy spaces, all of which should continue to deliver dependable income. Each is a potential buy right now.

Image source: Getty Images.

1. Oneok

As one of the leading U.S. pipeline companies, Oneok (NYSE: OKE) transports and stores oil and gas products through more than 60,000 miles of pipelines and infrastructure. Oneok primarily operates in natural gas and natural gas liquids, which management estimates will account for all but 28% of profits in 2026.

The stock yields 5% today, a fantastic starting yield, and management targets 3% to 4% annual increases over time. The U.S. Energy Information Administration projects domestic natural gas production to rise this year and next, and Wall Street analysts currently estimate that Oneok will grow earnings by nearly 4% annually over the long term, fueling future dividend hikes.

2. Chevron

Integrated oil giant Chevron (NYSE: CVX) is a global producer that should benefit from higher oil prices. Now that Chevron has closed its Hess acquisition, management expects production to grow by 2% to 3% annually through 2030. Chevron estimates its free cash flow will grow by 10% annually, even with Brent oil at $70, well below its current price.

If prices were to fall, Chevron has proven it can handle a downturn via its 39 consecutive annual dividend increases. Nobody knows where oil prices will go from here, but investors would be wise to buy Chevron for steady dividends across almost all economic scenarios. The stock's current 3.7% yield is a nice starting point, to boot.

3. Kinder Morgan

One of North America's largest energy infrastructure companies, Kinder Morgan (NYSE: KMI) stores and transports oil and gas products, as well as CO2, through more than 78,000 miles of pipelines and 136 terminals. Natural gas is Kinder Morgan's strong suit; the company transports approximately 40% of domestic production.

Kinder Morgan has a strong footprint in Texas and along the Gulf Coast, near the country's primary natural gas export hubs. The company has a $10 billion project backlog for future growth, roughly 90% of which is related to natural gas power generation, transmission, and liquefied natural gas exports. Kinder Morgan yields 3.5% today and should build on its nine-year growth streak.

4. Constellation Energy

Nuclear energy could be crucial to meeting America's electricity needs over the coming decades. Constellation Energy (NASDAQ: CEG) operates the largest fleet of nuclear power plants in the United States, with a capacity of roughly 22 gigawatts. That puts the company in an enviable position as tech companies seek sustainable power for the data centers popping up across the country. Last year, the company signed a 20-year deal with Meta Platforms to supply electricity from its nuclear fleet.

Wall Street analysts foresee strong growth ahead, estimating that Constellation Energy will grow earnings by 15% annually over the next three to five years. Now, the stock won't wow you with its initial dividend yield, currently just above 0.5%. However, the payout is just 15% of this year's estimated earnings. Given the projected growth ahead, investors who buy and hold the stock will likely see the dividend grow by leaps and bounds over the next decade.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron, Constellation Energy, Kinder Morgan, and Meta Platforms. The Motley Fool recommends Oneok. The Motley Fool has a disclosure policy.