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7 of the Best Energy Stocks for 2022 to Buy Now

@Nick2666
Energy stocks have been easy to invest in for the last two years. At the onset of the pandemic in 2020, energy stocks cratered because of a historic decline in demand. However, the U.S. economy began to open in early 2021 and demand increased. Just as that demand was increasing, the Biden administration took measures to slow down domestic supply. This created the perfect storm for traditional oil and gas stocks on one hand and renewable energy stocks on the other. The storm is likely to continue to blow through the market in 2022. Demand should remain high even with uncertainty about the virus. With inflation likely to remain high for the first half of the year, many investors will be looking to energy stocks for a reliable dividend. That doesn’t mean you can simply close your eyes and throw a dart at the energy sector, but it does mean that there’s an opportunity to buy some of the best-in-class stocks in both traditional and alternative energy companies. Here are seven energy stocks that can give your portfolio an all-of-the-above approach: $Marathon(MPC)$ As traditional oil and gas stocks go, you could do worse than investing in Marathon Petroleum. As 2021 kicked off, MPC stock was down nearly 30%. However, investors were already starting to see signs of a recovery. That’s because it was around that time that the first Covid-19 vaccines were being delivered. If you bought the stock at that time, you were rewarded with a gain of nearly 56%. Should investors expect that kind of return in 2022? That would seem unlikely. But oil prices are likely to remain high and analysts give the stock a gain of 13% in the next 12 months. Marathon pays a quarterly dividend that currently has a yield of 3.68% with a three-year average dividend growth of over 26%. The company has increased its dividend in each of the last nine years. $Chevron(CVX)$ If you believe that a “both/and” approach will be required as a bridge to a cleaner energy future, then Chevron should definitely be in your consideration set. CVX stock is up 40% in the last 12 months, but that has analysts concerned that it may be near its peak. However, opportunistic investors may want to look at any dip as an opportunity to buy shares of thisbest-in-class oil and gas stock. Chevron CEO Mike Wirth gave an interview to Barron’s Streetwise this summer in which he predicted that oil and gas prices will remain high for the foreseeable future. Chevron is also making strategic investments in renewable energy, particularly renewable natural gas, renewable diesel and sustainable aviation fuel. Although the company has no plans to market wind or solar, it is investing in hydrogen and carbon capture as long-term opportunities. Chevron is a Dividend Aristocrat having increased its dividend in each of the last 34 years. $NextEra(NEE)$ There’s no reason to believe that clean energy is going to become less important. That alone is a reason to invest in NextEra Energy. However, when it comes to investing in energy stocks, location matters. That’s another good reason to buy NextEra Energy stock. The company is based in Florida and has over11 million residential customersthat help the company generate over $16 billion in annual revenue. With a stock that’s up nearly 25% in the last 12 months, it may be fair for investors to wonder if NextEra Energy is overvalued. One thing to consider is what analysts have to say and at this time, analysts still give NEE stock a buy rating. With NextEra Energy you also get one of the most reliable dividend stocks you can own. The company is a dividend aristocrat that has increased its dividend in each of the last 27 years. With three-year dividend growth of 38%, this is a strong performing dividend stock as well. $Enterprise Products Partners LP(EPD)$ Dividend yield may be a misleading reason to buy stocks. But when the probability of a dividend yield exceeding 8 percent is combined with stocks in a hot industry, the effect may be different. This is what it is$Enterprise Products Partners LP(EPD)$Benefits of betting. < img src= "https://statIc.tigerbbs.com/6f1d85cbfed971f2eb5e4e390bbbd097 "tg-width=" 1200 "tg-height=" 674 "> However, it is not the only reason to buy company shares. The company is one of the largest enterprises in the industry, with stable, growing and distributable cash flow. This, in turn, has boosted the company's dividend growth over the past 23 years. Because of the company's leading position in the industry, investors can still count on it to achieve some growth. The 12-month target price given by analysts is $27.67, which is nearly 26% upside compared with the stock price at the beginning of 2022. $Enphase Energy(ENPH)$ Enphase addresses a key limitation of solar power. Specifically, the company’s microinverter technology converts direct current power from solar panels to alternating current power. This allows efficient use of solar energy in the evening and on cloudy days. Another benefit of microinverter technology is that it reduces the possibility of a single point failure taking down an entire solar panel system. The company recently announced the launch of its IQ8 solar microinverters that makes them the first in the industry to provide a solution to power essential appliances during daytime solar panel outages even without a home battery. Furthermore, while Enphase generates over 80% of its revenue in the United States, it’s looking to expand internationally. One product, Ensemble-in-a-Box, is an infrastructure-light solution that is ideal for countries like India. As of this writing, ENPH stock is trading 54% its 52-week high. However, analysts give the stock a $244.78 price target that represents a34% upside from its current price. $Brookfield Renewable Partners LP(BEP)$ For friends looking for renewable energy investment targets,$Brookfield Renewable Partners LP(BEP)$It's worth considering. First of all, the company is one of the largest public trading platforms for renewable energy in the world. The company manages a portfolio of nearly $58 billion, involving hydropower, wind, solar and energy storage projects on four continents. And the company's share price is near a 52-week low, making this dividend-paying stock an attractive point for value-seeking investors. Companies cut dividends in 2020 in response to the pandemic, but increased them in 2021. The dividend yield of 3.41% is slightly lower than the industry average, but higher than the average level of NYSE listed companies. The company is a favorite among industry analysts, with a consistent target price of $44.42 per share, 24% higher than the current one. $ChargePoint Holdings Inc.(CHPT)$ ChargePoint has been a polarizing stock in 2021. In fact, down 51% for the year, CHPT stock could easily take the crown of one of 2021’s biggest losers. Some of this bearish sentiment has to do with the company being lumped in with the electric vehicle (EV) sector. Some of it has to do with the delay in the U.S. Congress passing the infrastructure bill that has money set aside for building out a charging station infrastructure. However, ChargePoint is an investment in “when” not “if.” If electric vehicles are going to become a mainstream alternative, a nationwide charging infrastructure will be a must. This is a crowded sector, but ChargePoint is among the leaders and isadapting its product lineto provide solutions for battery packs that will allow consumers to charge wherever they are at (e.g. grocery store parking lots, entertainment venues, etc.). CHPT stock is trading near its 52-week low and analysts project a 64% upside for the stock.
7 of the Best Energy Stocks for 2022 to Buy Now

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