For investors looking for income, oil stocks with dividends can be a good option. However, it is important to do your research before investing in any stock, as the oil industry is cyclical and prices can fluctuate wildly.
Oil stocks have been on a tear in recent months, as the price of oil has surged to multi-year highs. This has led to a surge in dividend payments from oil companies, as they have been able to generate record profits.
Here are a few of the best oil stocks with dividends:
| Ticker | Company | Div Yield (%) |
|---|---|---|
| XOM | ExxonMobil | 3.80% |
| CVX | Chevron | 3.40% |
| RDS.A | Royal Dutch Shell | 4.30% |
| TOT | TotalEnergies | 5.00% |
| BP | BP | 6.10% |
| COP | ConocoPhillips | 2.70% |
| EOG | EOG Resources | 0.70% |
| OXY | Occidental Petroleum | 6.70% |
| MPC | Marathon Petroleum | 1.80% |
| VLO | Valero Energy | 2.00% |
ExxonMobil (XOM)
ExxonMobil is the largest oil company in the world and has a long history of paying dividends. The company's dividend yield is currently 3.80%. In addition to its dividend, ExxonMobil also has a strong track record of increasing its dividend over time.[QUIZ] 46 BILLION Barrels of Oil?!
A massive $5.9 trillion oil boom is about to take place. Three tiny companies just acquired the rights to mine an untapped patch holding 46 billion barrels of oil in a mystery location…
And it even has the potential to reach $9 trillion in value if prices reach $200 per barrel!
So which country do you think will lead this upcoming oil surge?
- Venezuela
- Saudi Arabia
- Canada
- Russia
Think you know the answer? See if you’re right!
Chevron (CVX)
Chevron is another major oil company with a long history of paying dividends. The company's dividend yield is currently 3.40%. Chevron is also a leader in the oil and gas industry, with operations in over 180 countries.Royal Dutch Shell (RDS.A)
Royal Dutch Shell is a global oil and gas company with a strong dividend track record. The company's dividend yield is currently 4.30%. Shell is also a leader in the energy transition, with investments in renewable energy and carbon capture and storage.TotalEnergies (TOT)
TotalEnergies is a French oil and gas company with a dividend yield of 5.00%. The company is also a leader in the energy transition, with investments in renewable energy and carbon capture and storage.BP (BP)
BP is a British oil and gas company with a dividend yield of 6.10%. British Petroleum is also a leader in the energy transition, with investments in renewable energy and carbon capture and storage.ConocoPhillips (COP)
ConocoPhillips is an American oil and gas company with a dividend yield of 2.70%. The company is also a leader in the Permian Basin, one of the most prolific oil and gas producing regions in the world.EOG Resources (EOG)
EOG Resources is an American oil and gas exploration and production company with a dividend yield of 0.70%. Known for its high-grading strategy, EOG Resources continues to generate strong returns for shareholders.Occidental Petroleum (OXY)
Occidental Petroleum is an American oil and gas exploration and production company with a dividend yield of 6.70%. The company has a strong track record of growing production and reserves. Additionally, the company is a leader in the Permian Basin.Marathon Petroleum (MPC)
Marathon Petroleum is an American petroleum refiner and marketer with a dividend yield of 1.80%. The largest refiner in the United States, Marathon Petroleum has a strong track record of profitabilityValero Energy (VLO)
Valero Energy is an American petroleum refiner and marketer with a dividend yield of 2.00%. The second-largest refiner in the United States, Valero Energy continues to thrive, year after year.
These are just a few of the many oil stocks with dividends. When choosing an oil stock to invest in, it is important to consider the company's financial strength, dividend history, and growth prospects.
It is also important to remember that oil prices are volatile and can fluctuate wildly. This means that the value of your investment in an oil stock can also fluctuate wildly. If you are investing in an oil stock for the dividend, you should be prepared for the stock price to decline in the short term.
However, if you are willing to ride out the ups and downs of the oil market, oil stocks with dividends can be a good way to generate income.
The benefits of investing in oil stocks with dividends:
- Potential for high income: Oil stocks typically pay high dividends, which can provide investors with a steady stream of income.
- Recession-resistant: Oil stocks tend to perform well during recessions, as people still need to buy oil to heat their homes and drive their cars.
- Diversification: Investing in oil stocks can help to diversify your portfolio and reduce your risk.
However, there are also some risks associated with investing in oil stocks:
- Volatility: Oil prices are volatile, which means that the price of an oil stock can go up or down significantly in a short period of time.
- Sustainability concerns: Oil is a non-renewable resource, and there are concerns about the environmental impact of oil production.
- Government regulation: The oil industry is heavily regulated, which can make it difficult for companies to operate and make profits.
If you are considering investing in oil stocks, it is important to weigh the risks and benefits carefully. You should also do your research and choose stocks that are well-managed and have a strong track record of dividend payments.
Additional things to consider when investing in oil stocks with dividends:
- Dividend yield: The dividend yield is a measure of how much a company pays out in dividends each year relative to its share price. A high dividend yield is usually a sign that a company is financially strong. Also that it is committed to paying dividends to its shareholders.
- Dividend growth: Companies that have a history of increasing their dividends over time are usually considered to be better investments than companies that do not.
- Financial strength: It is important to invest in companies that are financially strong and that have a good track record of profitability. This will help to reduce your risk of losing money if the company experiences financial difficulties.
- Management team: It is also important to invest in companies that have a good management team. The management team is responsible for making decisions that will affect the company's future performance.
In addition to oil stocks, here are some other sectors to consider when investing in dividend stocks.
- Utilities: Utilities are a good sector for dividend stocks, as they are typically stable and have a history of paying dividends. Some of the best utility stocks include Consolidated Edison (ED), Duke Energy (DUK), and NextEra Energy (NEE).
- Real estate investment trusts (REITs): REITs are another good sector for dividend stocks, as they are required to pay out at least 90% of their taxable income to shareholders in the form of dividends. Some of the best REIT stocks include Realty Income (O), Simon Property Group (SPG), and Public Storage (PSA).
- Telecom stocks: Telecom stocks are also a good sector for dividend stocks, as they are typically stable and have a history of paying dividends. Some of the best telecom stocks include AT&T (T), Verizon (VZ), and Comcast (CMCSA).
- Dividend growth ETFs: There are also a number of exchange-traded funds (ETFs) that track dividend-paying stocks. These ETFs can be a good way to get exposure to a broad range of dividend-paying stocks without having to pick individual stocks. Some of the best dividend growth ETFs include Vanguard Dividend Appreciation ETF (VIG), iShares Core Dividend Growth ETF (DGRO), and Schwab US Dividend Equity ETF (SCHD).
Final Thoughts – Oil Stocks with Dividends
Overall, when it comes to investment opportunities, oil stocks with dividends can offer a big advantage for investors. Not only capitalizing on the potential for capital appreciation but also effectively generating a consistent stream of income over time.
This can play a pivotal role in diversifying your overall investment portfolio, while providing a reliable source of financial stability and long-term security in the face of market fluctuations and economic uncertainties.
