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.
10. SM Energy Company (NYSE:SM)
Number of Hedge Fund Holders: 44
Dividend Yield as of Dec. 25: 4.23%
SM Energy Company (NYSE:SM) is an independent energy company focused on the exploration, exploitation, development, acquisition, and production of natural gas and crude oil in the United States.
On December 16, SM Energy Company (NYSE:SM) announced a quarterly dividend of $0.20 per share to be paid on January 9, 2026, to stockholders as of the December 26 record. The company currently boasts a robust annual dividend yield of 4.23%, as of the writing of this piece.
SM Energy Company (NYSE:SM) also received a significant boost on December 18 when the company received early termination by the FTC for its previously announced merger with Civitas Resources, clearing a key regulatory hurdle. The two parties agreed to merge in November, with the combined company boasting a portfolio of around 823,000 net acres, with expected annual synergies totaling $200 – $300 million. The $12.8 billion transaction, marking one of the year’s largest shale-sector consolidations, is expected to close in the first quarter of 2026.
In other news, on December 10, KeyBanc lowered its price target on SM Energy Company (NYSE:SM) from $36 to $28, but maintained its ‘Overweight’ rating on the shares. Despite the cut, KeyBanc remains confident regarding the aforementioned merger and expects robust free cash flow, rapid deleveraging, and a prudent plan to manage the debt stack.
9. Permian Resources Corporation (NYSE:PR)
Number of Hedge Fund Holders: 47
Dividend Yield as of Dec. 25: 4.32%
Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company focused on the development of crude oil and associated liquids-rich natural gas reserves in the United States.
On December 12, UBS raised its price target on Permian Resources Corporation (NYSE:PR) from $17 to $19, while maintaining a ‘Buy’ rating on the shares. The update comes amid the analyst’s bullish outlook on the energy sector in 2026, driven by improving oil and natural gas forecasts, M&A-driven value creation, cost and capex efficiencies, emerging OFS opportunities, and attractive valuations. While the analyst firm favors natural gas E&Ps, it expects the positive momentum to spread broadly across Oil E&Ps and OFS.
Again, on December 12, Mizuho analyst William Janela also raised the firm’s price target on Permian Resources Corporation (NYSE:PR) from $19 to $21, and maintained its ‘Outperform’ rating on the shares. The revised target, which represents an upside potential of almost 50% from the current share price, comes as the firm updated its ratings and targets in the exploration and production sector as part of its outlook for 2026. While the analyst acknowledged that the overall sentiment for the American oil and gas sector is negative, he noted that there is still ‘underappreciated value’ in the group that could start becoming realized in the coming year.
8. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 47
Dividend Yield as of Dec. 25: 5.69%
BP p.l.c. (NYSE:BP) is a British multinational company recognized worldwide for quality gasoline, transport fuels, chemicals, and alternative sources of energy such as wind and biofuels.
BP p.l.c. (NYSE:BP) made headlines on December 18 when the company announced a major leadership shakeup, appointing Meg O’Neill as the company’s new CEO. O’Neill, who is replacing Murray Auchincloss for the top position, is the London-based company’s first external hire for the post in more than a century, and the first woman to lead a Western oil major. She led Australian-listed Woodside Energy into becoming a renowned name in the LNG space, and will take her position as BP’s boss in April. Until then, the company’s head of trading, Carol Howle, will act as interim CEO.
Meg O’Neill is set to inherit BP p.l.c. (NYSE:BP) during a period of major strategic shift for the company, as it slashes billions in planned renewable energy initiatives and shifts its focus back to traditional oil and gas. Moreover, the energy giant is looking to optimize its operations and has pledged to slash up to $5 billion in costs and divest $20 billion in assets by 2027. The strategic refocus on fossil fuels appears to have gone down well with investors, with BP shares up by over 15% since the beginning of 2025.
7. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 48
Dividend Yield as of Dec. 25: 3.93%
Shell plc (NYSE:SHEL) is an integrated energy company with operations spanning exploration, production, refining, marketing, and chemical manufacturing, alongside growing investments in biofuels and hydrogen.
Shell plc (NYSE:SHEL) received a boost this week when it was revealed that the company, in partnership with INEOS, has made a new oil discovery in the Gulf of America after confirming hydrocarbons at the Nashville exploration well in the offshore play’s Norphlet region. Shell operates the well with a 79% working interest, while Ineos holds the remaining 21%.
In other news, it was revealed on December 12 that Shell plc (NYSE:SHEL) has selected Valaris drillship, VALARIS DS-8, for operations off the coast of Brazil. The multi-year contract, valued at approximately $300 million, will see the drillship deployed at the oil supermajor’s Orca project, formerly known as Gato do Mato. The project is designed to produce up to 120,000 barrels of oil per day, with start-up of production scheduled for 2029. The firm contract with Valaris is scheduled to commence in the first quarter of 2027 and has an estimated duration of approximately 800 days, with the option to extend by approximately one year.
Shell plc (NYSE:SHEL) was also recently included in our list of the Best Non-US Stocks to Buy According to Hedge Funds.
6. Chord Energy Corporation (NASDAQ:CHRD)
Number of Hedge Fund Holders: 49
Dividend Yield as of Dec. 25: 5.72%
With its premier acreage position in the Williston Basin, Chord Energy Corporation (NASDAQ:CHRD) engages in the exploration and production of crude oil, natural gas liquids, and natural gas.
On December 12, Mizuho raised its price target on Chord Energy Corporation (NASDAQ:CHRD) from $142 to $150, representing a robust upside potential of over 65% from the current share price. The analyst firm also maintained its ‘Outperform’ rating on the company’s shares.
The revised target comes as the analyst firm updated its rating and targets in the E&P space as part of its outlook for 2026. While the current oil oversupply and high gas storage have driven the overall sentiment around American oil and gas stocks to be negative, the analyst insists that there is still some ‘underappreciated value’ in the group, particularly in E&P.
Chord Energy Corporation (NASDAQ:CHRD) remains focused on improving its operational efficiency, targeting 4% volume growth with $100 million less capital in 2026. The company reported adjusted free cash flow of approximately $230 million in Q3 2025, with 69% of it returned to shareholders in the form of its $1.3 per share dividend and share repurchases. Since the combination with Enerplus closed in May last year, Chord has reduced its diluted shares outstanding by approximately 11%. CHRD was also recently included in our list of the 14 Best Up and Coming Dividend Stocks to Buy.
5. Ovintiv Inc. (NYSE:OVV)
Number of Hedge Fund Holders: 52
Dividend Yield as of Dec. 25: 3.15%
Next on our list of the Best Oil Stocks to Buy for Dividends is Ovintiv Inc. (NYSE:OVV), a leading North American exploration and production company focused on developing its high-quality, multi-basin portfolio.
On December 12, UBS slightly raised its price target on Ovintiv Inc. (NYSE:OVV) from $54 to $55, while maintaining a ‘Buy’ rating on the shares. The analyst noted that the energy sector seems well-positioned for a stronger 2026 after three years of limited gains. The firm expects the sector’s growth to be driven by an improving oil and natural gas outlook, M&A-driven value creation, cost and capex efficiencies, emerging OFS opportunities, and attractive valuations. While natural gas and E&P stocks are favored, the positive momentum is also expected to spread broadly across oil E&Ps and OFS.
In other positive news, it was reported on December 15 that Ovintiv Inc. (NYSE:OVV) has signed a 12-year agreement with Pembina Pipeline Corp. for 500,000 metric tons/year of liquefaction capacity at the latter’s Cedar LNG facility. The $4 billion floating LNG project is expected to come online in late 2028 and will provide Ovintiv with access to additional export markets in Asia.
The share price of Ovintiv Inc. (NYSE:OVV) has fallen by over 8% since the beginning of 2025.
4. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holders: 61
Dividend Yield as of Dec. 25: 3.93%
EOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the US and Trinidad.
On December 17, Citi analyst Scott Gruber lowered the firm’s price target on EOG Resources, Inc. (NYSE:EOG) from $125 to $115, but maintained a ‘Neutral’ rating on the shares. Given the energy company’s limited exposure, the analyst expects the dip in Waha gas prices to have a minor impact on EOG’s results.
Moreover, the analyst believes that EOG remains a more defensive stock in the exploration and production space should oil prices decline even further, which is a likely scenario given the supply glut expected next year, especially if there is a breakthrough in the Russia-Ukraine peace process.
Earlier on December 12, UBS analyst Josh Silverstein also lowered the firm’s price target on EOG Resources, Inc. (NYSE:EOG) from $144 to $141, which still indicates an upside potential of over 35% from the current share price. Moreover, the firm maintained its ‘Buy’ rating on EOG shares.
Following three lackluster years, the analyst believes that the energy sector is positioned for a better performance in 2026, driven by an improving oil and natural gas outlook, cost and capex efficiencies, M&A-driven value creation, emerging OFS opportunities, and attractive valuations.
3. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 72
Dividend Yield as of Dec. 25: 3.46%
ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.
On December 16, Jefferies reiterated its ‘Buy’ rating on ConocoPhillips (NYSE:COP) and assigned the stock a price target of $120, indicating an upside potential of almost 30% from the current share price. The analyst believes that the oil and gas giant offers an underappreciated and differentiated resource in 2030 and beyond and seems well-positioned to dig into its robust balance sheet to maintain its strong shareholder returns in the near term.
Moreover, the analyst highlighted ConocoPhillips’ Willow project in Alaska, adding that improved permitting in the region could allow for more exploration and increased output. Located on Alaska’s North Slope in the National Petroleum Reserve, the Willow project is estimated to produce 180,000 barrels of oil per day at its peak. The $7 – $7.5 billion project remains on track, with first oil production expected in 2029.
Earlier on December 12, UBS also increased its price target on ConocoPhillips (NYSE:COP) from $117 to $120, while maintaining a ‘Buy’ rating on the shares. After three years of limited growth, the analyst believes that the energy sector appears well-positioned for stronger growth in 2026, driven by improving oil and natural gas outlooks, M&A-driven value creation, cost and capex efficiencies, emerging OFS opportunities, and attractive valuations.
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 89
Dividend Yield as of Dec. 25: 4.54%
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.
Chevron Corporation (NYSE:CVX) is maintaining its presence as the largest foreign investor in Venezuela, despite the mounting geopolitical tensions and ongoing US sanctions. The company operates under a US license allowing it to produce and export oil from Venezuela, without the risk of sanctions. Therefore, while the US blockade in the Caribbean has driven other vessels to turn away, Chevron’s ships continue to sail by freely.
A Bloomberg report on December 18 revealed that Chevron Corporation (NYSE:CVX) is preparing to ship about 1 million barrels of Venezuelan crude. The company had already finished loading a cargo onto the tanker Searuby and was in the process of loading another onto the vessel Minerva Astra. Moreover, Chevron has sold at least 10 cargoes for delivery to the US in January.
At around 250,000 barrels per day, Chevron Corporation (NYSE:CVX)’s output in Venezuela represents a significant chunk of its overall global production. So the sanction waiver will significantly help the company in achieving its aim of over 10% annual growth in adjusted free cash flow and EPS through 2030.
Chevron Corporation (NYSE:CVX) boasts a strong annual dividend yield of 4.54%, putting it among the 12 Best Dogs of the Dow to Invest in.
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.
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