10 Best Oil Stocks that Pay Dividends

However, new stocks are not automatically added to or re-ranked on the page until the site performs its 10-minute update. A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS Best oil stock MoneyWatch, InvestorPlace and DailyFinance. As a senior writer at AOL’s DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.

We saw that in early 2022 after Russia’s invasion of Ukraine, which sent crude prices soaring into the triple digits for the first time in years. In 2023 alone, he is expected to make a total of $5.7 billion in cash from the dividend-paying stocks in his portfolio, according to Dow Jones Market Data of Berkshire https://investmentsanalysis.info/ Hathaway’s filings. This includes $1 billion in dividends from Chevron in 2023 as the oil producer increases dividend payments for the 36th year in a row. In fact, the company posted a record profit for the first quarter because higher liquified natural gas volumes offset the reduced cost of oil.

Best Oil Stocks That Pay Dividends

Oil won’t stay low or high forever, but you can be sure that the price of a barrel is trending up over the long term. Oil is a finicky industry – be sure to do your homework before investing in a sector facing unprecedented uncertainty. Enbridge owns extensive midstream assets that transport hydrocarbons across the U.S. and Canada.

Oil and its derivate products (e.g. gasoline) are still essential to the global economy. Of the 26 analysts covering COP tracked by S&P Global Market Intelligence, 12 rate it at Strong Buy, seven say Buy, six have it at Hold and one slaps a rare Sell rating on shares. That works out to a consensus recommendation of Buy, with high conviction. Oil stocks could return to their market-beating ways thanks to OPEC+’s surprise production cut. Please note that the stocks above were selected by an experienced financial analyst, but they may not be right for your portfolio. Before you decide to purchase any of these stocks, do plenty of research to ensure they are aligned with your financial goals and risk tolerance.

These oil stocks look well positioned for the oil market’s future.

Another great attribute of XOM stock is that it is a Dividend Aristocrat. Specifically, ExxonMobil has increased its dividend payout to shareholders for 39 consecutive years. The company currently pays a quarterly dividend of 91 cents per share, and its yield stands at 3.3%.

ExxonMobil has focused its recent efforts on reducing its business costs and boosting efficiency. Its share price has risen 50% to $25 in the last year as the price of crude oil has climbed. In addition to the share price appreciation, other reasons to like MRO stock include its 1.42% dividend yield, $3 billion stock buyback program, and its low P/E ratio of 4.88. Plus, Wall Street analysts, on average, forecast that the company’s earnings more than tripled in 2022.

Risks of Oil and Gas Stocks

The U.S. struck a deal with the European Union earlier this year aimed at reducing the bloc’s reliance on natural gas from Russia. The U.S. committed to provide Europe with at least 15 billion cubic meters more of liquified natural gas by the end of 2022. The goal of the deal is to wean European countries such as Germany and France off natural gas that comes from Russia.

• Investors who bid up shares in such firms were simply following the money as rising oil prices filled the exploration and production companies’ coffers.
• The company brought in $7.86 billion in revenue in the first quarter, a 12.8% increase from a year ago.
• We believe everyone should be able to make financial decisions with confidence.
• That’s because stronger sentiment should encourage Americans to hit the road, which would have a directly positive impact on SUN stock.
• Over time, investors gradually increased their position in oil stocks as they anticipated an eventual return to normal.

We have discussed various alternatives with the aim of both increasing shareholder value and allowing Shell to effectively manage the energy transition. We have reiterated our view that Shell’s portfolio of disparate businesses ranging from deep water oil to wind farms to gas stations to chemical plants is confusing and unmanageable. Most investors we have discussed this with agree that the company would be more successful over the long term with a different corporate structure. With the outlook for oil stocks suddenly much more bullish, it seemed like a good time to see which S&P 500 exploration and production oil stocks get the highest recommendations from industry analysts. Meanwhile, oil companies that operate independently of OPEC can also have an impact on oil prices.

Features to Look for in Crude Oil Stocks

Before you buy, make sure you check the fees for the type of payment you intend to use. These are companies that make equipment used in the massively complex process of drilling and extracting oil. This includes drilling gear, testing and safety tools, and other heavy-duty components.