12 Best Crude Oil Stocks to Buy for Dividends

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 93

Dividend Yield as of Dec. 25: 3.46%

Topping our list of the Best Energy Stocks for a Retirement Portfolio is Exxon Mobil Corporation (NYSE:XOM), one of the largest integrated fuels, lubricants, and chemical companies in the world.

Exxon Mobil Corporation (NYSE:XOM) received a boost on December 9 when the company announced that it is raising its earnings growth forecast to $25 billion and cash flow growth to $35 billion during the 2024-30 period. The outlook represents a $5 billion increase from its previous plan, despite no growth in capital spending.

As part of its updated corporate plan, Exxon Mobil Corporation (NYSE:XOM) is targeting to increase its total upstream production to 5.5 million oil-equivalent barrels per day (boepd) by 2030, up from a previous forecast of 5.4 million boepd. As a result, the company expects its earnings from the upstream business to grow by more than $14 billion through the end of the decade from 2024.

Exxon Mobil Corporation (NYSE:XOM) also increased its cumulative structural cost savings plan by $2 billion, with an aim to achieve $20 billion in reductions by 2030, compared to 2019. The company expects to generate roughly $145 billion in cumulative surplus cash flow over the next five years (at $65 real Brent), allowing it to grow its shareholder returns and maintain its status as the second-largest dividend payer in the S&P 500. Moreover, Exxon remains on track to repurchase $20 billion of its shares this year, with plans to maintain that pace also through 2026.

While we acknowledge the potential of XOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XOM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Retirement Stock Portfolio: 11 Energy Stocks to Buy and 11 Best Utility Stocks to Invest in According to Hedge Funds.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.