At first glance, acquiring energy stocks – specifically of the hydrocarbon variety – might not seem sensible. After all, as the adage that’s beaten over our heads states, electric vehicles are the future. Also, earlier this year, the Biden-Harris administration proposed the strongest-ever pollution standards for cars and trucks. That’s great for the environment; not so much for hydrocarbon specialists.

Still, companies in the field – especially high-yield energy stocks – offer an intriguing narrative. By combining relevance with robust dividends, investors can enjoy a good ole double dipping. And yes, hydrocarbons are very much relevant. Like it or not, the science doesn’t lie: fossil fuels command incredible energy density, making the resource arguably indelible.

Also, you’ve got to look at the economics. While the “experts” are waxing poetic about EVs, data from S&P Global Mobility shows that the average age of passenger vehicles on U.S. roadways hit a record 12.5 years recently. In other words, once policymakers fix inflation and high borrowing costs, then we can talk more rationally about clean mobility.

Until then, these are the high-yield energy stocks to buy.

Phillips 66 (PSX)

Phillips 66 gas station in the daytime

Source: Jonathan Weiss / Shutterstock.com

One of the more balanced ideas among high-yield energy stocks, Phillips 66 (NYSE:PSX) primarily operates in the refining and marketing (downstream) components of the hydrocarbon value chain. Under the broader narrative of EV integration, Phillips 66 might seem anachronistic. After all, drivers are increasingly likely to recharge their vehicles rather than refuel them.

Still, PSX managed to gain about 17% of equity value since the beginning of this year. On an economic level, many households are hurting from the severe pressures stemming from the consequences of Covid-19-related policies. Subsequently, demand for EVs have also taken a hit despite a sector-wide price that should in theory should be positive for consumers.

Cynically, that leaves many people still left to pumping gasoline, which suits PSX stakeholders just fine. Currently, the company carries a forward yield of about 3.54%. Also, the payout ratio is relatively low at 31.12%, providing confidence for yield sustainability.

In closing, analysts rate PSX a moderate buy with a $131.64 average price target.

Kinder Morgan (KMI)

Kinder Morgan logo on a sign outside the company headquarters in Houston.

Source: JHVEPhoto / Shutterstock.com

One of the largest energy infrastructure companies in North America, Kinder Morgan (NYSE:KMI) deserves to be on your radar for high-yield energy stocks, especially if you’re focused on the yield component rather than the growth side. Indeed, KMI lost about 4% of market value since the beginning of the year. Still, that shouldn’t immediately dissuade you.

No, it’s not ideal, don’t get me wrong. However, KMI simply represents one of the most relevant energy stocks available. Per its public profile, the company owns an interest in or operates about 83,000 miles of pipelines and 143 terminals. As a midstream specialist, Kinder Morgan transports a variety of critical resources through its pipelines, including liquefied natural gas (LNG), ethanol, biodiesel and hydrocarbon, among others.

To be fair, Kinder Morgan doesn’t offer the prettiest financials. However, it’s consistently profitable, featuring a net margin of 15.54%, above 72% of its peers. In turn, the midstream player offers a robust forward yield of 6.51% (although you must watch the high payout ratio of 95.13%).

Lastly, analysts peg KMI a moderate buy with a $20.50 price target.

EOG Resources (EOG)

Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field. Oil prices and oil price predictions

Source: Golden Dayz / Shutterstock.com

Based in Houston, Texas, EOG Resources (NYSE:EOG) focuses on hydrocarbon exploration or the upstream component of the industry’s value chain. Again, at face value, EOG and its ilk appear to be racing against the clock in terms of fading relevance. However, two fundamental factors may surprisingly bolster the upstream sector’s pertinence.

First, rising population trends from a combination of natural births and immigration will likely increase consumption trends. Despite the troubles America faces, it’s still the best house in the neighborhood – and people want to come in. Second, various geopolitical flashpoints involve adversarial nations that command extraordinary natural resources. Since these relationships may be frayed for a while, we need more energy diversity, not less.

Therefore, EOG may enjoy relatively robust upside potential. While commanding impressive profitability metrics, EOG also sports strong long-term revenue growth. In terms of high-yield energy stocks, it’s on the lower end at about a forward yield of 3%.

Nevertheless, analysts view shares as a strong buy with a $152.22 price target. Also, the high-side target stands at $172.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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