In this article, we are going to discuss the 14 best oil and gas dividend stocks to buy right now.

The global oil and gas industry has been rocked by the ongoing tensions in the Middle East. Iran has responded to US-Israeli strikes with a flurry of its own rockets and drones, which has led to several Gulf producers suspending operations at a number of major oil and gas facilities. Moreover, Iran has retaliated by closing down the Strait of Hormuz, which handles over a fifth of the global oil and LNG supply.

The supply disruption has led to oil prices soaring to their highest level in over two years, with Brent crude trading at over $93 per barrel at the time of writing this piece. Crude prices shot up, especially after Qatar’s energy minister, Saad al-Kaabi, stated that he expects all Gulf oil and gas exporters to halt production within days. According to Mr. Kaabi, oil prices could even hit $150 a barrel if the war continues over the coming weeks, and with President Trump demanding an unconditional surrender from Iran, there are fears that the conflict might actually get drawn out.

While the average gas price in the US hit $3.32 per gallon on Friday, the highest since 2024, President Trump seems unmoved and stated:

“I don’t have any concern about it. They’ll drop very rapidly when this is over, and if they rise, they rise, but this is far more important than having gasoline prices go up a little bit.”

Given this, we will take a look at some of the best dividend stocks from the oil and gas sector.

Our Methodology

To collect data for this article, we referred to several stock screeners to find oil and gas stocks with the most hedge fund investors in the Insider Monkey database as of the end of Q4 2025. Then we shortlisted the stocks that had an annual dividend yield of at least 2.5% as of March 5, 2026. The following are the Best Oil and Gas Dividend Stocks According to Hedge Funds. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.

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).

14. California Resources Corporation (NYSE:CRC)

Number of Hedge Fund Holders: 40

Dividend Yield as of Mar. 5: 2.61%

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) reported mixed results for its Q4 2025 on March 2, with its adjusted earnings of $0.47 per share falling behind estimates by $0.03. However, the company’s revenue grew by over 5% YoY to $924 million and exceeded expectations by more than $134 million.

California Resources Corporation (NYSE:CRC) reported a net production of 138,000 barrels of oil equivalent per day (boed) for the full-year 2025, up 25% compared to the previous year, reflecting consistent capital execution and value accretive transactions.

California Resources Corporation (NYSE:CRC) also generated free cash flow of $543 million for the year, its highest annual free cash flow since 2021, driven by a robust base performance, structural cost reductions, realized synergies, and higher-than-average resource adequacy payments from its power assets. The strong FCF allowed the company to increase its share repurchase program by $430 million last month and extend the program through 2027, with remaining capacity at approximately $600 million.

California Resources Corporation (NYSE:CRC)  is targeting to grow its net production by 12% YoY to 155,000 boed in FY 2026, with oil representing roughly 81% of volumes. The company is expecting to generate approximately $1 billion of adjusted EBITDAX at $65 Brent this year.

13. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)

Number of Hedge Fund Holders: 43

Dividend Yield as of Mar. 5: 4.51%

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.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) received a boost on March 4 when Goldman Sachs raised its price target on the stock from $7 to $9, while keeping a ‘Buy’ rating on the shares. The revised target indicates an upside of 2.5% from the current levels.

Goldman Sachs highlighted early signs of dislocation between depressed valuations and underlying fundamentals, despite the possibility of near-term challenges posed by the current geopolitical situation. The analyst firm expects the ongoing geopolitical concerns in the Middle East not to impact customer plans in the long run, as it believes that the major part of the activity increases are structural to help offset decline rates and increasing production capacity.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) delivered $416 million in adjusted free cash flow for FY 2025, with the fourth quarter marking the highest since the company’s 2023 strategic transformation. This enabled the firm to increase its quarterly dividend by 25% to $0.10 per share in the first quarter of 2026.

12. Chord Energy Corporation (NASDAQ:CHRD)

Number of Hedge Fund Holders: 45

Dividend Yield as of Mar. 5: 4.56%

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 March 5, UBS upped its price target on Chord Energy Corporation (NASDAQ:CHRD) from $119 to $142, while keeping its ‘Buy’ rating on the shares. The revised target, which indicates an upside of over 17% from the current share price, reflects a $10 per barrel increase in 2026 oil price assumptions to $68 WTI and $72 Brent. Moreover, the crude oil price has received further support from the ongoing tensions in the Middle East.

UBS believes that the markets have underpriced the impact of a prolonged Iran conflict. The supply disruptions in the Strait of Hormuz and the suspension of LNG exports from Qatar could significantly raise global energy prices and drive a strong free cash flow upside for companies like Chord, which produce both oil and gas.

Chord Energy Corporation (NASDAQ:CHRD) was also recently included in our list of the 12 Best Crude Oil Stocks to Buy as Tensions Rise.

11. ONEOK, Inc. (NYSE:OKE)

Number of Hedge Fund Holders: 46

Dividend Yield as of Mar. 5: 5.05%

ONEOK, Inc. (NYSE:OKE) is a leading midstream operator that provides gathering, processing, fractionation, transportation, storage, and marine export services. The company transports natural gas, NGLs, refined products, and crude oil through its approximately 60,000-mile pipeline network.

On February 25, Jefferies increased its price target on ONEOK, Inc. (NYSE:OKE) from $80 to $85, while maintaining a ‘Hold’ rating on the shares. However, the analyst highlighted the FY 2026 outlook presented by Oneok in its Q4 report on February 23, which raises ‘fresh questions’ around the company’s inability to grow without commodity tailwinds. Oneok is targeting an adjusted EBITDA midpoint of $8.1 billion for FY 2026, which is flattish from the $8.02 billion it achieved last year, despite $150 million of new synergies. Meanwhile, the company is forecasting its net income for the year to come in at a midpoint of approximately $3.45 billion, compared to the $3.46 billion it hit in 2025.

The weak guidance drove ONEOK, Inc. (NYSE:OKE) to fall by over 5% following the Q4 report, which Jefferies believes ‘appropriately de-risked’ the stock. However, the analyst does not expect the ‘beat and raise’ to drive outperformance, unless it is coupled with a strong base Gathering and Processing (G&P) volume growth.

10. Suncor Energy Inc. (NYSE:SU)

Number of Hedge Fund Holders: 48

Dividend Yield as of Mar. 5: 3.07%

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) received a lift on March 2 when CIBC raised its price target on the stock from C$70 to C$88, while maintaining an ‘Outperformer’ rating on the shares. The revised target reflects an upside of over 12% from the current share price.

Suncor Energy Inc. (NYSE:SU) reported better-than-expected results for its Q4 2025 last month, helped by quarterly records for upstream production and refining throughput. The company increased production by almost 4% YoY to 909,000 bbl/day during the quarter, while refining throughput also surged by 3.7%YoY rose to 504,000 bbl/day.

Suncor Energy Inc. (NYSE:SU) also announced a target to repurchase C$3.3 billion of its shares in 2026, with expectations to return 100% of excess funds to shareholders.

With a robust annual dividend yield of 3.07%, Suncor Energy Inc. (NYSE:SU) is included among the 12 Best Crude Oil Stocks to Buy for Dividends.

9. HF Sinclair Corporation (NYSE:DINO)

Number of Hedge Fund Holders: 50

Dividend Yield as of Mar. 5: 3.53%

HF Sinclair Corporation (NYSE:DINO) is an independent petroleum refiner in the United States with operations throughout the mid-continent, southwestern, and Rocky Mountain regions.

HF Sinclair Corporation (NYSE:DINO) revealed on February 27 that its Chief Financial Officer, Atanas Atanasov, had taken a voluntary leave of absence amid concerns raised by its audit committee. The development comes following reports on February 17 that the company’s board member and CEO, Tim Go, had filed a similar request, with Board Chair Franklin Myers stepping in as the interim CEO.

The shakeup in top leadership comes after the petroleum refiner initiated an assessment of matters relating to its disclosure process in January, with Atanasov raising concerns that certain actions taken by Tim Go created an unfavorable ‘tone at the top’ related to the disclosure processes of FY 2025.

HF Sinclair Corporation (NYSE:DINO) stated the following in its 10-K filing on February 27:

“During the latter stages of this review, a separate concern developed relating to certain actions taken by Mr. Atanasov bearing upon the review process… and the viability of his future working relationships with other members of the company’s management team. After discussion of these concerns, on February 24, 2026, the board of directors received a request from Mr. Atanasov to take a voluntary leave of absence from his duties.”

HF Sinclair Corporation (NYSE:DINO) has named Vivek Garg as its interim CFO, and the company is working to negotiate a mutually agreeable separation arrangement with both Go and Atanasov.

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

Number of Hedge Fund Holders: 51

Dividend Yield as of Mar. 5: 5.09%

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.

On March 2, Citi analyst Alastair Syme raised the firm’s price target on BP p.l.c. (NYSE:BP) from £525 to £540, while maintaining a ‘Buy’ rating on the shares. The revised target, which indicates an upside of over 10% from the current levels, comes as the analyst firm sees ‘strong valuation support’ for global energy names due to the ongoing war in the Middle East.

The conflict has led to Iran retaliating by blocking the Strait of Hormuz, which handles around a fifth of the global oil and LNG supply. According to recent estimates, a prolonged closure of the ever-important waterway could lift oil prices to even over $100 per barrel. As a result, Citi increased its price targets across the global integrated oil and gas group.

BP p.l.c. (NYSE:BP) was also recently included in our list of the 14 Best LNG Stocks to Buy Now.

7. Permian Resources Corporation (NYSE:PR) 

Number of Hedge Fund Holders: 56

Dividend Yield as of Mar. 5: 3.29%

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 March 5, Benchmark downgraded Permian Resources Corporation (NYSE:PR) from ‘Buy’ to ‘Hold’, without assigning it a price target. The move comes after the stock exceeded the analyst firm’s previous target. That said, Benchmark highlighted how PR’s YTD gains of over 30% have outpaced both the XLE and the XRP, with the stock ending FY 2025 on a high by reporting a better-than-expected EBITDA and guidance for 2026.

Permian Resources Corporation (NYSE:PR) set records across several key operational metrics in Q4 2025, including its highest oil production, lowest D&C cost per foot, and lowest controllable cash cost in the company’s history. The energy firm reported oil production of 188,600 bpd for the quarter, with total production standing at 401,500 boepd.

Moreover, Permian Resources Corporation (NYSE:PR) generated adjusted free cash flow of $1.6 billion in the full-year 2025, representing a 20% growth from the previous year. This allowed the company to increase its quarterly dividend by 7% to $0.16 per share on February 26.

Permian Resources Corporation (NYSE:PR) is targeting to deliver 5% higher production in 2026 when compared to 2025, while also reducing its CapEx by $120 million to $1.85 billion.

6. EOG Resources, Inc. (NYSE:EOG)

Number of Hedge Fund Holders: 59

Dividend Yield as of Mar. 5: 3.19%

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 March 5, Piper Sandler upped its price target on EOG Resources, Inc. (NYSE:EOG) from $123 to $127, but maintained its ‘Neutral’ rating on the shares. The updated target comes amid the Middle East war, which has led to Iran closing down the Strait of Hormuz and putting around a fifth of the global oil, product, and natural gas supply at risk. While the rising tensions have overshadowed the recent Q4 results and FY 2026 outlook, Piper does not expect many changes from the US operators.

EOG Resources, Inc. (NYSE:EOG) posted strong results for its Q4 2025 on February 25, with the firm beating estimates in both earnings and revenue. The company is targeting to deliver a free cash flow of approximately $4.5 billion in 2026, with its breakeven price to cover the year’s capital program and regular dividend standing at $50 WTI. It needs mentioning that the Middle East conflict has pushed the WTI crude oil futures to around $80 per barrel, providing a significant FCF growth opportunity for operators like EOG.

EOG Resources, Inc. (NYSE:EOG) boasts an impressive annual dividend yield of 3.19%, putting it among the 11 Best Energy Stocks to Buy for Dividends in 2026.

While we acknowledge the potential of EOG 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 EOG and that has 100x upside potential, check out our report about this cheapest AI stock.

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