In this article, we are going to discuss the crude oil stocks to buy for dividends.
The crude oil industry witnessed significant volatility this year, driven primarily by the sharp decline in prices of the commodity, which fell to a nearly five-year low last week. However, major oil companies continue to be resilient and have switched focus to reducing costs and lowering breakevens, allowing them to weather the high volatility amid a global supply glut. As a result, the S&P 500 energy index has posted gains of almost 3% since the beginning of 2025, despite an over 20% drop in the crude oil price during the period.
Moreover, the oil and gas sector is also attractive for investors due to its high shareholder returns, having distributed $166.2 billion in dividends last year, up significantly from $118.9 billion in 2018. According to figures from Janus Henderson, the oil, gas, and energy sector reported an annual underlying dividend growth rate of 3% last year.
With that said, here are the Best Crude Oil Dividend Stocks to Buy Now.
Our Methodology
To collect data for this article, we referred to several stock screeners to find oil stocks with the most hedge fund investors in the Insider Monkey database as of the end of Q3 2025. Then we shortlisted the stocks that had an annual dividend yield of at least 3% as of December 25, 2025. The following are the Best Oil Dividend Stocks According to Hedge Funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. Suncor Energy Inc. (NYSE:SU)
Number of Hedge Fund Holders: 42
Dividend Yield as of Dec. 25: 3.98%
Suncor Energy Inc. (NYSE:SU) is a Canadian integrated energy company that extracts, produces, and provides energy from a mix of sources, ranging from oil sands to renewable fuels.
Suncor Energy Inc. (NYSE:SU) reported its outlook for FY 2026 on December 11, with the company projecting higher oil and gas production during the year, despite a cut in spending. The energy operator expects upstream production of 840,000 – 870,000 barrels per day (bpd) next year, up from its estimate of 810,000 – 840,000 bpd for FY 2025. At the same time, Suncor is forecasting its capital expenditure for next year to range between C$5.6 billion and C$5.8 billion, down from its 2025 forecast of C$6.1 billion to C$6.3 billion.
Moreover, Suncor Energy Inc. (NYSE:SU) reiterated its commitment to shareholders by reaffirming that the company would continue returning 100% of excess funds to shareholders. Suncor increased its monthly share buybacks by 10% in December to C$275 million, and projected C$3.3 billion in total buybacks in 2026.
Following the encouraging outlook, on December 12, TD Securities raised its price target on Suncor Energy Inc. (NYSE:SU) from C$71 to C$73, while maintaining a ‘Buy’ rating on the shares.
11. California Resources Corporation (NYSE:CRC)
Number of Hedge Fund Holders: 43
Dividend Yield as of Dec. 25: 3.68%
California Resources Corporation (NYSE:CRC) operates as an independent energy and carbon management company in the United States. It operates in two segments, Oil and Natural Gas, and Carbon Management.
California Resources Corporation (NYSE:CRC) made headlines on December 18 when the company announced that it had completed its all-stock merger with Berry Corporation, strengthening its oil and gas portfolio in California, while also adding strategic optionality in the Uinta basin. Under the agreement, Berry’s former shareholders received approximately 5.6 million shares of CRC common stock, valuing the deal at around $253 million based on the company’s closing share price on December 17. The merger was first announced in September 2025, when the oil and gas company also revealed that it expects to generate $80–90 million in annual synergies within a year of closing.
Francisco Leon, President and CEO of California Resources Corporation (NYSE:CRC), stated:
“CRC is entering 2026 stronger than ever, ready to build on our operational momentum and deliver meaningful synergies for our shareholders. This transaction adds high-quality assets in our core San Joaquin Basin and enhances cash flow durability and operating efficiencies as we build a stronger, more durable platform aimed to deliver sustainable shareholder value.”
In other news, California Resources Corporation (NYSE:CRC) revealed on December 16 that it is expanding its push into carbon management by signing an MoU with Middle River Power to provide the latter’s power facilities with carbon transportation and sequestration services. The strategic agreement marks CRC’s first MoU to provide carbon management services for a brownfield power facility in Northern California.
