12 Best Oil and Gas Dividend Stocks to Buy Now

3. BP p.l.c. (NYSE:BP)

Dividend Yield as of July 15: 6.13%

BP p.l.c. (NYSE:BP) expects the total of its dividends and share buybacks over time to be around 30% to 40% of operating cash flow. The company is targeting an increase of at least 4% per year in its ordinary dividend and announced a dividend of $0.08 per share in April. As of the writing of this piece, BP boasts an impressive annual dividend yield of 6.13%, putting it among the Best Oil and Gas Dividend Stocks on our list.

BP p.l.c. (NYSE:BP) also announced $750 million of share repurchases at the end of the first quarter of 2025, and the $1.75 billion share buyback programme it announced with the fourth quarter results was completed on April 25, 2025.

To help improve its profitability, BP p.l.c. (NYSE:BP) has revealed that it is working on a $4 billion – $5 billion cost reduction program. The company delivered $800 million of structural cost reductions and $300 million of absolute reductions last year. Moreover, it was already $500 million lower in terms of absolute cost base in Q1 2025, compared to the same period in 2024.

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.