Energy stocks are back in favor with income investors, and for good reason. The sector's dividend yields now average around 4.2%, well above the S&P 500's ($SPX) 1.3%, while major producers are generating record free cash flow and returning billions to shareholders through buybacks and growing payouts. At the same time, the energy transition is accelerating, with global renewable capacity additions hitting a record 585 gigawatts in 2024, driven by solar's 452 GW contribution.
TotalEnergies SE (TTE) is capitalizing on both trends. The French energy major offers a forward dividend yield of 5.2%. It has raised its payout for three consecutive years, supported by a diversified portfolio spanning oil, gas, and rapidly growing renewable assets.
