In this article, we are going to discuss the best oil and gas dividend stocks to buy now.
Despite a slump in crude oil prices compared to last year, the world’s largest oil and gas companies have stuck to their dividend distribution policies, digging into their deep pockets to keep their shareholders happy.
According to Janus Henderson, the oil, gas, and energy sector reported an annual underlying dividend growth rate of 3% in 2024. The industry paid $166.2 billion in dividends last year, up significantly from $118.9 billion it distributed in 2018.
However, sustaining such a high level of returns is becoming increasingly difficult with time, given that the International Energy Agency (IEA) expects global oil demand to peak and plateau by the end of the decade, putting further downward pressure on prices. As a result, we are witnessing a growing number of oil and gas companies resort to significant cost-cutting measures and alternative sources of revenue to make sure they have enough cash available to maintain their massive payouts.
With that said, here are the Best Oil and Gas Dividend Stocks for Passive Income.
Our Methodology
To collect data for this article, we observed various companies operating in the oil and gas sector and then picked out companies with the highest dividend yields as of July 15, 2025, and that have maintained their dividend policies over the last few years. The following are the Best Oil and Gas Stocks with High Dividend Yields.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield as of July 15: 3.51%
Known for its high payouts to shareholders, Exxon Mobil Corporation (NYSE:XOM) has distributed more than $125 billion in dividends and buybacks over the last five years. The oil and gas behemoth boasted cash payouts of $9.1 billion only in the first quarter of 2025, including $4.8 billion of share buybacks.
Exxon Mobil Corporation (NYSE:XOM) keeps a steady track record of generating strong cash flows and has raised its payouts for 42 years in a row, putting it among the 11 Best Dividend Aristocrats to Invest in Now.
To maintain such heavy payouts, Exxon Mobil Corporation (NYSE:XOM) has grown its earnings at an annual rate of roughly 30% over the last five years, with its cash flow also rising at a CAGR of roughly 15% during the period. More impressively, the oil behemoth continues to advance at full steam, with aims to add a further $20 billion in earnings and $30 billion in cash flow by the end of the decade.
Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world. The company operates facilities and markets products around the globe and explores for oil and natural gas on six continents.
11. Shell plc (NYSE:SHEL)
Dividend Yield as of July 15: 3.99%
Another giant in the global oil and gas industry, Shell plc (NYSE:SHEL) distributed $5.5 billion among its shareholders in Q1 2025, including $3.3 billion in share repurchases and $2.2 billion in dividends. The company also announced a $3.5 billion share buyback program in May, which it expects to complete by the time of its Q2 2025 results announcement. This makes it the 14th consecutive quarter in which the crude oil producer has announced $3 billion or more in buybacks.
Shell plc (NYSE:SHEL) declared an interim dividend of $0.358 per share in May and currently boasts an annual dividend yield of 3.99%. Moreover, the company is able to maintain its shareholder payouts even in low-priced environments, given its low distribution breakevens – $40 Brent for dividends, and buybacks continuing at $50.
Artisan Partners stated the following regarding Shell plc (NYSE:SHEL) in its Q1 2025 investor letter:
“Shell is one of the world’s largest integrated oil and gas companies. The business has a durable portfolio of oil and gas resources, which includes a global leadership position in liquefied natural gas (LNG), an attractive and growing market.
The business has been materially transformed over the past two years by a new management team that understands value creation. CEO Wael Sawan and his team have adjusted the capital investment plan to be more focused on the core business and generating returns. Management has also used the company’s strong free cash flow (FCF) to add significant value for shareholders through capital allocation. Over the last three years, Shell has produced about $100 billion in FCF, and the management team has returned all of it through a combination of dividends, buybacks and debt reduction. The current market capitalization is about $200 billion, which means the company has returned over half the market cap to shareholders over the past three years…” (Click here to read the full text)
Shell plc (NYSE:SHEL) is a global group of energy and petrochemical companies, employing 103,000 people and with operations in more than 70 countries. The company is also the number one global lubricant supplier, as well as the top player in the rapidly expanding LNG sector.
10. Cenovus Energy Inc. (NYSE:CVE)
Dividend Yield as of July 15: 4.14%
Cenovus Energy Inc. (NYSE:CVE) returned C$595 million to shareholders through dividends, share buybacks, and the redemption of the preferred shares in the first quarter of 2025. The company also approved an 11% increase to its annual base dividend to C$0.80 per share, reiterating that its low breakeven allows it to grow its payout and sustain its business even at a $45 per barrel WTI oil price.
Despite a drop in global crude oil prices, Cenovus Energy Inc. (NYSE:CVE) managed to beat expectations in both revenue and profits in the first quarter of 2025. The company has several key development projects coming online in the near future that should help it sustain its earnings and shareholder payouts.
An important example is the West White Rose project, which is expected to start production in Q2 2026. The asset is of special significance since it will add 45,000 barrels per day that the company can sell at international pricing, rather than the discounted Western Canadian Select pricing that producers get on oil exported to the United States.
Cenovus Energy Inc. (NYSE:CVE) is an integrated oil and natural gas company, based in Calgary, Alberta, with operations that span Canada, the United States, and the Asia Pacific region.
9. Kinder Morgan, Inc. (NYSE:KMI)
Dividend Yield as of July 15: 4.18%
Next on our list of Best Energy Dividend Stocks is Kinder Morgan, Inc. (NYSE:KMI) – a company that paid dividends of $650 million in the first quarter of 2025, and also increased its quarterly dividend by 2% YoY to $0.2925 per share, marking the eighth straight year that Kinder Morgan has grown its payouts.
Kinder Morgan, Inc. (NYSE:KMI) is known for its stable cash flows, 64% of which are backed by take-or-pay contracts, which entitle the company to payment regardless of volume. Moreover, the company is targeting to increase its annual cash flows by 5% YoY to $5.9 billion in 2025, which should be more than sufficient to cover its expected $2.6 billion dividend outlay.
Moreover, Kinder Morgan, Inc. (NYSE:KMI) also boasts a hefty project backlog of $8.8 billion, which should add to its stable sources of cash flow going forward.
Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company has an interest in or operates approximately 79,000 miles of pipelines and 139 terminals.
8. Chevron Corporation (NYSE:CVX)
Dividend Yield as of July 15: 4.53%
One of the largest oil and gas producers in the world, Chevron Corporation (NYSE:CVX)’s consistently strong financial performance has allowed it to increase its dividend payout for 38 consecutive years. The company has returned over $78 billion to its shareholders over the past three years alone, making it a Top Oil and Gas Dividend Stock to Invest in.
Chevron Corporation (NYSE:CVX) boasts one of the strongest balance sheets in the industry, with a debt-to-equity ratio of roughly 0.2 at the end of the first quarter of 2025. This allows the energy giant to take on debt during the down cycles of the industry, so it can continue to support its business and sustain payouts.
However, the recent slump in crude oil prices is beginning to take its toll, with the company revealing that its share repurchases this year could be between $11.5 billion and $13 billion, which would be at the lower end of its guidance of $10 billion to $20 billion.
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.
7. Permian Resources Corporation (NYSE:PR)
Dividend Yield as of July 15: 4.85%
The strategic advantage of Permian Resources Corporation (NYSE:PR) lies in its low breakeven cost of $40 per barrel, which allows the company to remain profitable and pay dividends even during periods of commodity price volatility. The company announced a quarterly dividend of $0.15 per share in May and boasts an annual dividend yield of 4.85% as of the writing of this piece.
In Q1 2025, Permian Resources Corporation (NYSE:PR) reported the highest free cash flow per share in the company’s history at $0.54 per share, driven by lower per-unit cost and solid production performance. These numbers are expected to receive a boost as the oil and gas producer recently completed the acquisition of Delaware Basin leasehold and royalty interests from APA Corporation, adding approximately 12,000 Boe a day, 13,320 net acres, and 8,700 net royalty acres to its portfolio.
Moreover, these acquired locations have a breakeven price of as low as $30 per barrel, allowing Permian resources to generate in excess of 5% free cash flow per share accretion in the near-term, midterm, and long-term.
Artisan Partners stated the following regarding Permian Resources Corporation (NYSE:PR) in its Q1 2025 investor letter:
“We made one new purchase this quarter, adding Permian Resources Corporation (NYSE:PR), an independent oil and gas company. PR is focused solely on the Delaware Basin of West Texas and southwestern New Mexico—the most prolific oil-producing region in the US. The founders and co CEOs, who also have large ownership interests in the business, have sought to build a business that can produce substantial free cash flow, return capital to shareholders and generate attractive equity returns across varied commodities price environments. To achieve these goals, PR has pursued best-in-class operations and responsible capital stewardship by thoughtfully acquiring assets it believes are undervalued and divesting acreage it believes would be better in someone else’s hands, while meaningfully returning capital to shareholders in the form of dividends. We always seek to align ourselves with shareholder-oriented management teams, but this is even more critical when investing in mid-sized energy companies given their dependence on the underlying commodity prices and minimal diversification by business and geography as well as the sector’s general predilection for reinvesting capital for growth rather than returns. Shares were rangebound for much of 2024 as macro fears have weighed on oil prices and energy sector stocks, giving us an opportunity to purchase a strong operator at a favorable price.”
Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company with operations focused in the Permian Basin, with assets concentrated in the core of the Delaware Basin.
6. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)
Dividend Yield as of July 15: 5.37%
Following its 2023 acquisition of Nextier, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has emerged as a dominant player in US drilling and completions, boasting the country’s largest pressure pumping fleet. The company returned $51 million to shareholders in the first quarter of 2025, including $20 million for share repurchases. PTEN also declared a quarterly dividend of $0.08 per share in April and offers an attractive annual dividend yield of 5.37% as of the writing of this piece.
Over the 18 months from September 30, 2023, through March 31, 2025, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) used approximately $387 million to repurchase shares and reduced its share count by 8%. The company still has $741 million in remaining share repurchase authorization as of the end of the first quarter of 2025. PTEN revealed in its investor presentation last month that it has a target to return at least 50% of this adjusted free cash flow to shareholders, supported by a strong capital structure with no senior note maturities until 2028.
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.
5. Canadian Natural Resources Limited (NYSE:CNQ)
Dividend Yield as of July 15: 5.52%
Canadian Natural Resources Limited (NYSE:CNQ) has increased its dividend for 25 consecutive years with a CAGR of 21% over the period, putting it among the 11 Best Canadian Dividend Stocks to Buy Now. In 2024 alone, the company approved three dividend increases and has already raised the payout again in 2025, despite weaker oil prices. CNQ announced a quarterly dividend of $0.5875 per share in May and currently boasts an annual dividend yield of 5.52%.
Canadian Natural Resources Limited (NYSE:CNQ)’s industry-leading cost structure and predictable, long-life, low decline assets and reserve base allow it to have a break-even that remains in the low-to-mid $40 WTI range. This enables the company to remain profitable and sustain shareholders’ payouts even during periods of excessive market volatility.
Canadian Natural Resources Limited (NYSE:CNQ) is one of the largest independent crude oil and natural gas producers in the world. continuing operations in its core areas located in Western Canada, the UK portion of the North Sea, and offshore Africa.
4. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of July 15: 5.96%
As one of the only dividend aristocrats in its sector, Enbridge Inc. (NYSE:ENB) has increased its dividend for 30 consecutive years and expects to continue this momentum by growing its business by 5% per year through the end of the decade. Currently, the company offers a quarterly dividend of C$0.9425 per share and has a dividend yield of 5.96%, as of July 15.
Enbridge Inc. (NYSE:ENB) boasts a toll-booth-like pipeline and utility business that centers around fixed fees and other contracts that generate stable cash flows, allowing the company to maintain its dividend growth at a CAGR of 9% over the past three decades.
The company is also diversifying beyond pipelines and into renewable energy through solar and wind projects. Moreover, it reported a secured growth backlog of $28 billion at the end of Q1 2025, ensuring sustainable cash flow and dividend growth in the future.
Enbridge Inc. (NYSE:ENB) is a midstream energy company that focuses on transporting and distributing oil, natural gas, and natural gas liquids. The Canadian company moves about 30% of the crude oil produced in North America.
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.
2. Chord Energy Corporation (NASDAQ:CHRD)
Dividend Yield as of July 15: 6.29%
Chord Energy Corporation (NASDAQ:CHRD) presents a convincing investment opportunity due to its strong balance sheet, consistent free cash flow, and significant shareholder returns.
The company reported an adjusted free cash flow of approximately $291 million for the first quarter of 2025. Moreover, it maintained shareholder returns at 100% of free cash flow for the second consecutive quarter, repurchasing $216.5 million of its stock. Chord Energy also announced a dividend of $1.3 per share in May, which equates to approximately $75 million.
Since 2021, Chord Energy Corporation (NASDAQ:CHRD) has returned $56 per share in dividends, more than half its current share price, demonstrating its strong commitment to shareholders. Moreover, with only $800 million in debt, most of which matures in the next decade, the company has sufficient financial flexibility to be able to sustain such high returns over the coming years.
As of the writing of this piece, Chord Energy Corporation (NASDAQ:CHRD) boasts a hefty annual dividend yield of 6.29%.
Chord Energy Corporation (NASDAQ:CHRD) is a scaled, unconventional US oil producer with a premier Williston Basin acreage position. The company acquires, exploits, develops, and explores for crude oil, natural gas, and natural gas liquids.
1. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of July 15: 6.92%
Enterprise Products Partners L.P. (NYSE:EPD) announced a quarterly dividend of $0.545 per share in July, up 1.9% from its prior distribution and marking the company’s 26th consecutive year of dividend growth. With an annual dividend yield of 6.92% as of July 15, EPD tops our list of Best Oil and Gas Dividend Stocks in 2025.
Enterprise Products Partners L.P. (NYSE:EPD) grew its distributable cash flow by 5% YoY to $2 billion in the first quarter of 2025, enough to cover its quarterly distribution by a comfortable 1.7 times. Moreover, the company reported $7.6 billion of major growth projects in its backlog at the end of Q1, with the majority of these projects coming online at the end of this year. This should provide the midstream operator with enough incremental free cash flow to sustain its high shareholder returns.
With an average 5-year revenue growth rate of 13.34%, Enterprise Products Partners L.P. (NYSE:EPD) is placed among the 10 High Growth Dividend Paying Stocks to Buy.
Enterprise Products Partners L.P. (NYSE:EPD) is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products, and petrochemicals.
While we acknowledge the potential of EPD 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 EPD and that has 100x upside potential, check out our report about this cheapest AI stock.
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