In this article, we are going to discuss the 10 energy stocks with highest dividends.
Energy stocks are known for their high and regular dividends, thanks to their often strong free cash flows and healthy balance sheets. The Vanguard Energy Index Fund ETF, which passively tracks the performance of American energy companies, currently boasts an annual dividend yield of 2.66%. This compares to a yield of 1.08% by the Vanguard 500 Index Fund, which tracks the performance of the overall S&P 500.
The sector received a significant boost in the first quarter of 2026, driven primarily by the soaring oil prices amid the Middle East war. While consumers around the world lamented high fuel prices, the world’s biggest oil companies made estimated windfall war profits of around $23 billion during the first month of the Middle East conflict, according to figures from Rystad Energy.
FactSet stated that Wall Street forecasts for free cash flow of the three largest companies in the energy index alone have surged by a combined $60 billion for this year. Moreover, the FCF expectations for the two largest refiners in the index are also up by $18 billion. This means that across just these five companies, there is a 53% increase in cash that can be distributed to shareholders.
While the war has thankfully calmed down and oil prices have fallen from their multi-year highs, some analysts still expect them to remain above their pre-conflict levels. On June 26, Barclays lowered its forecasts for Brent crude price to $96 per barrel for 2026 and $85 per barrel for 2027, down from $100 and $88, respectively.
With that said, here are the Energy Stocks with Highest Dividends to Buy Now.
Our Methodology
To collect data for this article, we referred to screeners to identify energy stocks with an annual dividend yield of over 4%, as of June 30. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Energy Stocks with Highest Dividends to Buy Now.
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10. Murphy Oil Corporation (NYSE:MUR)
Dividend Yield as of June 30: 4.30%
Murphy Oil Corporation (NYSE:MUR) is a global independent oil and natural gas exploration and production company.
On June 29, Morgan Stanley cut its price objective on Murphy Oil Corporation from $37 to $35, while reaffirming an ‘Underweight’ rating on the shares. The lowered target still implies an upside of over 3% from the current price level.
The move comes after the analyst firm revised its estimates to reflect the latest energy prices. The WTI crude price has fallen by about 60% from its recent highs and is now hovering only slightly above its pre-conflict levels following the US-Iran MoU on June 14.
Separately, Murphy Oil Corporation disclosed on June 23 that it had discovered oil at the Bubale-1X exploration well offshore Côte d’Ivoire. The company is targeting net production of 171,000 barrels of oil equivalents per day (boepd) for FY 2026, and recently reaffirmed its capital guidance range of $1.2 billion to $1.3 billion for the year.
9. Chevron Corporation (NYSE:CVX)
Dividend Yield as of June 30: 4.30%
Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.
On June 29, Morgan Stanley lowered its price target on Chevron Corporation from $214 to $210, but reiterated its ‘Overweight’ rating on the shares. The revised target, which still represents an upside of almost 27% from the current price level, follows the analyst firm’s updated estimates to reflect the recent changes in energy prices.
Morgan Stanley noted that the WTI crude price has fallen by nearly 60% from its recent peak in April and is now trading only slightly above its pre-conflict levels after the US and Iran signed a memorandum of understanding to end the war on June 14.
Known for its strong commitment to shareholders, Chevron Corporation has grown its dividend for 39 consecutive years and boasts the coveted title of a Dividend Aristocrat. The company’s business has been designed to comfortably cover its payouts even at crude prices below $50 per barrel, allowing it to sustain its dividends even through multiple commodity downturns, including the oil market collapse in 2020.
Meridian Hedged Equity Fund stated the following regarding Chevron Corporation in its Q1 2026 investor letter:
“Chevron Corporation operates as a globally diversified integrated energy company, with upstream crude oil exploration and production complementing its downstream refinement and retail operations. Our investment thesis is anchored in the company’s strict capital discipline, its highly efficient Permian Basin footprint, and the strategic benefits expected from the integration of recently acquired Hess Corporation. Together, these strengths support the potential for durable free-cash-flow generation, consistent dividend growth, and steady share repurchases across commodity cycles. Chevron’s stock benefited in March from a sharp rise in oil prices following supply disruptions, but performance was also supported by better-than-expected earnings earlier in the quarter. These results reinforced confidence in the company’s management team, operational strength and financial discipline. We maintained our position throughout the quarter.”
8. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)
Dividend Yield as of June 30: 4.36%
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries.
On June 29, Citi lowered its price recommendation on Patterson-UTI Energy, Inc. from $11 to $10.50, while maintaining a ‘Neutral’ rating on the shares. The trimmed target still indicates an upside of 10% from the current levels.
Citi revised its models for the land drilling sector, noting that the companies in the group are at a “crossroads”. The analyst firm believes that this momentum should continue into the third quarter, but cautioned that further upside beyond that quarter is at risk. This is because after the US-Iran agreement and the reopening of the Strait of Hormuz, the 2027 oil price strip has recently fallen toward $66 per barrel.
Meanwhile, earlier on June 16, Stifel analyst Stephen Gengaro raised the firm’s price target on Patterson-UTI Energy, Inc. by $1 and reiterated a ‘Buy’ rating on the shares (read more details here).
7. Canadian Natural Resources Limited (NYSE:CNQ)
Dividend Yield as of June 30: 4.45%
Next on our list of the Energy Stocks with Highest Dividends is Canadian Natural Resources Limited (NYSE:CNQ). It is a senior crude oil and natural gas production company with continuing operations in its core areas located in Western Canada, the UK portion of the North Sea, and offshore Africa.
On June 26, Scotiabank assumed coverage of Canadian Natural Resources Limited with a ‘Sector Perform’ rating and a price objective of C$72, indicating an upside of over 28% from the current levels.
The initiation is part of Scotiabank’s broader launch of coverage across the Canadian energy sector, which includes six large-cap E&P and royalty companies and six small-to-mid-cap E&P companies. The analyst firm stated that although the Canadian oil and gas sector has significantly outperformed since the beginning of 2026, it continues to see attractive opportunities in select companies.
Canadian Natural Resources Limited has grown its dividend for 26 consecutive years, with a CAGR of 20% over that time. The company moved its net debt below the $16 billion level in the first quarter and increased its pace of share repurchases, evident by the $309 million of buybacks in April 2026. The company is now targeting a net debt level of $13 billion, at which time it will increase returns to shareholders to 100% of free cash flow.
6. Equinor ASA (NYSE:EQNR)
Dividend Yield as of June 30: 4.84%
Equinor ASA (NYSE:EQNR) is an international energy company headquartered in Norway, with over 25,000 employees in around 20 countries worldwide.
On June 29, TD Cowen cut its price target on Equinor ASA from $42 to $37, but maintained a ‘Hold’ rating on the shares. The lowered target still implies an upside of almost 18% from the current levels.
According to TD Cowen, Equinor’s outlook is supported by higher output, although this is expected to be offset by higher capital expenditures. The analyst firm also highlighted the increased visibility around the company’s share buyback program.
While EQNR appears cheap relative to its historic levels, the firm believes that it still trades at a premium compared to its peers based on the 2026-27 outlook. Although the higher energy prices could provide support in the near-term, TD Cowen expects more material outperformance to emerge only after the company reaches its free cash flow inflection point in 2029.
At its 2026 Capital Markets Day earlier this month, Equinor revealed that it now plans to spend $3 billion on buying back its own shares this year, up from the $1.5 billion projected earlier in February. The company is targeting to raise its quarterly cash dividend by 5% per year with annual share buybacks of $2 billion to $4 billion from 2027, based on oil prices of $60-$80 per barrel and European gas prices of $7-$11/MMBtu.
5. Eni S.p.A (NYSE:E)
Dividend Yield as of June 30: 5.21%
Eni S.p.A. (NYSE:E) operates as an integrated energy company in Italy, the rest of Europe, the United States, Asia, Africa, and internationally.
On June 25, Erste Group analyst Hans Engel downgraded Eni S.p.A. from ‘Hold’ to ‘Buy’, without assigning the stock a specific price target.
According to Erste Group, the Italian energy giant is well-positioned in 2026 to more than offset the natural production declines from its mature fields by ramping up new gas and LNG projects. However, the analyst firm expects energy prices to remain lower in the second half of the year than they were in the first half, which is likely to weigh on the company’s profitability.
Eni S.p.A. is targeting an underlying oil & gas production growth of 3-4% for FY 2026. Meanwhile, its gross capex and net capex for the year have been confirmed at €7 billion and €5 billion, respectively.
Eni boosted its share buyback by around 90% to €2.8 billion ($3.27 billion) in April, and also raised its full-year cash flow from operations guidance by 20% to €13.8 billion.
4. Viper Energy, Inc. (NASDAQ:VNOM)
Dividend Yield as of June 30: 5.37%
Viper Energy, Inc. (NASDAQ:VNOM) is a publicly traded Delaware corporation focused on owning and acquiring mineral and royalty interests, primarily in the Permian Basin.
On June 29, Morgan Stanley analyst Devin McDermott trimmed the firm’s price recommendation on Viper Energy, Inc. from $49 to $46, but kept an ‘Overweight’ rating on the shares. The revised target still indicates an upside potential of over 8% from the current share price.
The adjustment comes after Morgan Stanley updated its estimates to reflect the recent movements in energy prices. The analyst firm noted that the WTI crude price has retreated by around 60% from its recent peak in April and is now trading only slightly above its pre-conflict levels after the US and Iran signed a memorandum of understanding on June 14.
After a strong first quarter, Viper Energy, Inc. raised the midpoint of its FY26 oil production guidance by around 2.5%, driven primarily by “Diamondback’s increased near-term activity and continued development of Viper’s high concentration royalty interest throughout the basin”. The raised output target represents an organic growth of over 5% relative to the company’s pro forma 2025 exit rate.
3. TotalEnergies SE (NYSE:TTE)
Dividend Yield as of June 30: 5.43%
TotalEnergies SE (NYSE:TTE) is a global integrated energy company that produces and markets energies.
On June 23, CICC initiated coverage of TotalEnergies SE with an ‘Outperform’ rating and a price target of €90, indicating an upside of over 32% from the current levels.
TotalEnergies SE raised its dividend and doubled its share buybacks in April after its earnings topped expectations in the first quarter, driven by the Middle East war-driven oil rally. The French energy major announced a 5.9% dividend increase and authorized stock buybacks of up to $1.5 billion for the second quarter, compared to the $750 million target for Q1 announced in February.
This marks a sharp turnaround as TotalEnergies slowed buybacks and announced a cost-savings programme late last year, forecasting that the already low oil prices would fall further.
Antipodes Global Strategy stated the following regarding TotalEnergies SE in its Q1 2026 investor letter:
“TotalEnergies SE surged higher towards the end of the Quarter supported by volatile and elevated oil prices, which lifted earnings expectations and cash flow outlook. Heightened geopolitical tensions drove sharp swings in Brent Crude, benefiting integrated energy producers with strong upstream leverage. The rally was reinforced by solid CY25 results and constructive 2026 guidance, including expected production growth, rising LNG volumes and continued expansion in integrated power, which further underpinned investor confidence.”
2. Sunoco LP (NYSE:SUN)
Dividend Yield as of June 30: 5.87%
Sunoco LP (NYSE:SUN) is a leading energy infrastructure and fuel distribution master limited partnership operating across 32 countries and territories in North America, the Greater Caribbean, and Europe.
On June 23, Barclays lifted its price target on Sunoco LP from $73 to $75, while reiterating an ‘Overweight’ rating on the shares. The revised target, which represents an upside of 9% from the current levels, comes after the analyst firm revised its estimates in the midstream and refining sector to reflect the updated commodity prices.
Sunoco LP started off 2026 with a strong first quarter, exceeding estimates in both profits and revenue. The company is targeting an adjusted EBITDA in the range of $3.1 billion to $3.3 billion for FY26, and remains on track to complete over $500 million of bolt-on acquisitions during the year. Moreover, Sunoco reiterated its commitment to target a multiyear dividend growth rate of at least 5%.
1. Frontline plc (NYSE:FRO)
Dividend Yield as of June 30: 9.00%
Topping our list of the Energy Stocks with Highest Dividends is Frontline plc (NYSE:FRO), a world leader in international seaborne transportation of crude oil. The company has one of the world’s largest fleets of VLCC and Suezmax tankers, and LR2/Aframax tankers.
On June 24, BTIG upped its price target on Frontline plc (NYSE:FRO) from $45 to $55, while maintaining a ‘Buy’ rating on the shares. The target boost, which reflects a robust upside of over 55% from the current levels, comes as part of the analyst firm’s broader research note on Oil and Tanker markets.
BTIG noted that although the 60-day waiver on Iranian oil sanctions has boosted oil exports from the Arabian Gulf, a lot more work is required before the conventional tanker fleet starts transporting cargo from the region. The firm also expects the crude tanker demand to strengthen in the post-war period, since major crude importers from Asia will look to replenish their inventories.
Notably, the cost of hiring tankers in the Persian Gulf has nearly doubled following the US-Iran MoU, as the region’s producers scramble to move the oil that had been stranded for months.
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