The Smart Money’s Top Energy Dividend Stocks

#3 ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders (as of June 30): 43
Total Value of Hedge Fund Holdings (as of June 30): $1.5 billion
Hedge Fund Holdings as Percent of Float (as of June 30): 2.00%

ConocoPhillips (NYSE:COP) fell by 20.9% in the quarter as crude prices remained weak. ConocoPhillips is the only super-major without a downstream unit, and consequently isn’t as protected from low crude prices. Its stock has a dividend yield of 5.36%, which isn’t bad. The payout ratio is above 100%, so the company still needs crude prices to rise for its dividend to be sustainable in the long run. First Eagle Investment Management owns 7.65 million shares of the company, according to its last 13F filing.

#2 Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders (as of June 30): 50
Total Value of Hedge Fund Holdings (as of June 30): $2.11 billion
Hedge Fund Holdings as Percent of Float (as of June 30): 1.20%

Chevron Corporation (NYSE:CVX)’s stock declined by 17.2% in the third quarter. The stock has a dividend yield of 4.7%, which is about double the 10-year Treasury bond yield. Management believes the company will have enough cash flow to cover the dividend by 2018. The analysts at Deustche Bank also believe Chevron’s yield is safe:

“While some dividends may be (or should be) at risk (e.g. Marathon Oil’s), we believe the remaining dividends are safe, suggesting the Integrateds’ current yields (vs SPX and Euro Majors and respective historical averages) are overly discounted.”

Ken Fisher’s Fisher Asset Management is one of the shareholders of Chevron with a stake of 3.53 million shares.