In this article, we are going to discuss the 15 best natural gas and oil dividend stocks to buy now.
Dividend stocks make for an essential long-term component of any portfolio, since dividend-paying stocks have historically performed better during market downturns. According to a recent study by Hartford Funds, dividend-paying stocks have declined by an average of 14.4% during major drawdowns over the last 50 years, against a 28.2% fall by non-dividend-paying stocks and 19.9% by the overall market.
The oil and gas industry is known for its commitment to shareholders, having paid $166.2 billion in dividends last year, up significantly from $118.9 billion it distributed in 2018. However, with the high volatility surrounding the global oil sector and a bleak future demand outlook, sustaining such a high level of payouts is becoming a problem.
This has forced a growing number of oil and gas companies to resort to significant cost-cutting measures and look for alternative sources of revenue, with a recent ray of hope emerging in the form of liquified natural gas. The global LNG demand is expected to grow by around 60% by 2040, largely driven by economic growth in Asia, emissions reductions in heavy industry and transport, as well as the impact of artificial intelligence.
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 Q2 2025. Then we shortlisted the stocks that had an annual dividend yield of at least 3% as of September 19, 2025. The following are the Best Oil and Gas 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here)
15. Civitas Resources, Inc. (NYSE:CIVI)
No. of Hedge Fund Holders: 39
Dividend Yield as of Sep. 19: 6.41%
To make sure it keeps its shareholders happy, Civitas Resources, Inc. (NYSE:CIVI) increased its share repurchase authorization to $750 million in August, equal to around 28% of its market cap at the time. The company also announced plans to allocate 50% of its free cash flow after the base dividend to share buybacks on an annual basis, and the remainder to debt reduction.
To ensure a steady growth in margins and returns, Civitas Resources, Inc. (NYSE:CIVI) remains on track with its previously announced $100 million of cost optimization and efficiency initiatives. The company estimates the impact of this initiative to be $40 million in the current financial year.
That said, the share price of CIVI has plunged by over 35% since the beginning of 2025. Diamond Hill Capital, an investment management firm, stated the following about Civitas Resources, Inc. (NYSE:CIVI) in its Q2 2025 investment letter:
“Among our bottom individual Q2 contributors to return were Insperity and Civitas Resources, Inc. (NYSE:CIVI). Shares of oil and gas exploration and production company Civitas were pressured by the combination of growing macroeconomic concerns in the wake of April’s tariff announcements and OPEC’s announcement that it would unwind production cuts early, possibly materially increasing supply in a weaker demand environment and weighing on oil prices.”
Civitas Resources, Inc. (NYSE:CIVI) is an oil and gas exploration and production company with assets in Colorado and Texas.
14. Cenovus Energy Inc. (NYSE:CVE)
No. of Hedge Fund Holders: 41
Dividend Yield as of Sep. 19: 3.42%
Cenovus Energy Inc. (NYSE:CVE) made headlines this summer when the company announced that it would acquire MEG Energy in a C$7.9 billion cash-and-stock deal, creating one of the largest oil sands companies in Canada. However, the deal has fallen into controversy with a rival hostile bid in place and some shareholders criticizing Cenovus for undervaluing what is Canada’s last remaining pure-play oil sands company. That said, MEG’s board has endorsed CVE’s bid, which is set to be voted on by shareholders in October.
Cenovus Energy Inc. (NYSE:CVE) remains committed to its shareholders with returns of $819 million through dividends, share buybacks, and the redemption of $150 million of preferred shares in the second quarter of 2025. The company announced a quarterly dividend of C$0.2 per share in July and boasts an annual dividend yield of 3.42% as of the writing of this piece.
The share price of Cenovus Energy Inc. (NYSE:CVE) has surged by more than 21% over the last six months.
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.
13. Shell plc (NYSE:SHEL)
No. of Hedge Fund Holders: 44
Dividend Yield as of Sep. 19: 4%
Thanks to its strong cash generation and robust balance sheet, Shell plc (NYSE:SHEL) announced a $3.5 billion share buyback program in August, marking the 15th consecutive quarter in which the energy giant has announced $3 billion or more in buybacks. The company also declared an interim dividend of $0.358 per share back in July. At the end of the second quarter of 2025, Shell’s 4-quarter rolling shareholder distributions were 46% of its CFFO – in line with its target range of 40% to 50% of CFFO through the cycle.
To make sure it can sustain such high cash flows and thus payouts even in a low-priced environment, Shell plc (NYSE:SHEL) remains focused on reducing costs and improving efficiency. As of the end of Q2 2025, the company has achieved $3.9 billion in structural cost reductions since 2022, putting it firmly on track for its target of $5 billion to $7 billion by the end of 2028.
Shell plc (NYSE:SHEL) is a global group of energy and petrochemical companies, employing 96,000 people across more than 70 countries.
12. Canadian Natural Resources Limited (NYSE:CNQ)
No. of Hedge Fund Holders: 44
Dividend Yield as of Sep. 19: 5.43%
Canadian Natural Resources Limited (NYSE:CNQ)’s industry-leading cost structure and predictable, long-life, low decline assets and reserve base enable it to have a breakeven in the low to mid-$40 WTI per barrel range, allowing the company to remain profitable and sustain shareholders’ payouts even during periods of excessive market volatility. Moreover, CNQ maintains a robust balance sheet, with liquidity of approximately C$4.8 billion at the end of Q2 2025.
Canadian Natural Resources Limited (NYSE:CNQ) remains strongly committed to its shareholders, with returns of C$1.6 billion in the second quarter, including C$1.2 billion of dividends and an additional $400 million of share repurchases. Moreover, the company announced a quarterly dividend of C$0.5875 in August.
Canadian Natural Resources Limited (NYSE:CNQ) has a strong history of 25 consecutive years of growing its sustainable dividend with a CAGR of 21% during the period. The stock boasts an annual dividend yield of 5.43% as of the writing of this piece, putting it among the Best Oil and Gas Dividend Stocks to Buy Now.
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.
11. ONEOK, Inc. (NYSE:OKE)
No. of Hedge Fund Holders: 44
Dividend Yield as of Sep. 19: 5.74%
Known for its stable cash flows backed by government-regulated rate structures and long-term contracts, ONEOK, Inc. (NYSE:OKE) has nearly doubled its payouts over the last decade. The company declared a quarterly dividend of $1.03 per share in July, having already paid $1.3 billion in the first half of the year.
Moreover, ONEOK, Inc. (NYSE:OKE) remains focused on growing its cash flows and payouts, with several new expansion projects already underway, including relocating a gas processing plant to the Permian Basin, expanding its refined products pipeline system to Denver, constructing two new natural gas liquids fractionators, and building an LPG export terminal. The company expects these growth drivers to increase its dividend at an annual rate of 3% to 4% in the coming years.
ONEOK, Inc. (NYSE:OKE) is one of the largest diversified energy infrastructure companies in the US, owning and operating an extensive network of NGLs, natural gas, refined products, and crude oil assets.
10. BP p.l.c. (NYSE:BP)
No. of Hedge Fund Holders: 46
Dividend Yield as of Sep. 19: 5.66%
BP p.l.c. (NYSE:BP) raised its dividend by 4% to $0.0832 per share in August, in addition to announcing a $750 million share buyback for the second quarter. The company expects the total of its dividends and share buybacks over time to be around 30% to 40% of operating cash flow and boasts an impressive annual dividend yield of 5.66% as of the writing of this piece, putting it among the Best Oil and Gas Dividend Stocks on our list.
As is the case with several other energy giants on our list, BP p.l.c. (NYSE:BP) is rigorously working to reduce costs in order to stay profitable and maintain its high shareholder returns. In order to further simplify its portfolio and reduce debt, the company announced a $20 billion divestment program earlier this year, which it expects to deliver through 2027.
There has also been a shift in strategy at BP p.l.c. (NYSE:BP) recently, with current CEO Murray Auchincloss hiking spending on oil and gas and slashing the company’s low-carbon budget.
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.
9. Phillips 66 (NYSE:PSX)
No. of Hedge Fund Holders: 47
Dividend Yield as of Sep. 19: 3.72%
Known for its high and consistent shareholder returns, Phillips 66 (NYSE:PSX) has increased its dividend at an 11.7% CAGR since 2013 through the end of 2024. The company remains committed to returning over 50% of its net operating cash flow to shareholders through share repurchases and a secure, competitive, and growing dividend. PSX returned $906 million to shareholders through stock buybacks and dividends in the second quarter of 2025 and announced a quarterly dividend of $1.2 per share in July.
Expansion remains a top priority for Phillips 66 (NYSE:PSX), with the company announcing last month that it has agreed to acquire the remaining 50% ownership interest in WRB Refining from Cenovus Energy. The company expects the $1.4 billion all-cash deal to increase its refining capacity by adding approximately 250,000 barrels per day.
With an annual dividend yield of 3.72% as of the writing of this piece, Phillips 66 (NYSE:PSX) is included among the 13 Best Fortune 500 Dividend Stocks to Invest in.
Phillips 66 (NYSE:PSX) is a leading integrated downstream energy provider that is engaged in refining, transporting, and marketing fuels.
8. Permian Resources Corporation (NYSE:PR)
No. of Hedge Fund Holders: 49
Dividend Yield as of Sep. 19: 4.5%
Thanks to its industry-leading cost structure and low break-evens, Permian Resources Corporation (NYSE:PR) is able to generate strong cash flows and deliver high shareholder returns throughout the cycles. The company executed a $43 million share buyback program in the second quarter and announced a quarterly dividend of $0.15 per share in August.
Following its recent Apache acquisition at lower than mid-cycle commodity prices, Permian Resources Corporation (NYSE:PR) was able to increase its original FY 2025 production guidance by 3%, while also lowering the capital budget by 2% compared to the original plan announced in February. These acquired locations have a breakeven price of as low as $30 per barrel, allowing the company to generate in excess of 5% free cash flow per share accretion in the near-term, midterm, and long-term.
Permian Resources Corporation (NYSE:PR) has gained over 2,200% over the last five years.
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.
7. Chord Energy Corporation (NASDAQ:CHRD)
No. of Hedge Fund Holders: 52
Dividend Yield as of Sep. 19: 5.26%
Chord Energy Corporation (NASDAQ:CHRD) presents an attractive investment opportunity due to its strong balance sheet, consistent free cash flow, and significant shareholder returns. The company generated $141 million in adjusted free cash flow in Q2 2025, with 92% of it going to shareholders. Since completing its acquisition of Enerplus last year, Chord has reduced its share count by approximately 10% through early August. Moreover, the company declared a quarterly dividend of $1.3 per share last month.
Chord Energy Corporation (NASDAQ:CHRD) also remains focused on improving its operational efficiency, allowing it to reduce FY 2025 capital by $50 million versus the original budget, while exceeding expectations on the production side. Moreover, the company’s free cash flow outlook has improved 20% since February.
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.
6. EOG Resources, Inc. (NYSE:EOG)
No. of Hedge Fund Holders: 53
Dividend Yield as of Sep. 19: 3.5%
EOG Resources, Inc. (NYSE:EOG) generated $1 billion in free cash flow in Q2 2025 and returned more than $1.1 billion to shareholders, including $600 million of opportunistic share repurchases. The company raised its regular dividend by around 5% to $1.02 per share in May, and reiterated its commitment to return at least $3.5 billion in cash this year.
EOG Resources, Inc. (NYSE:EOG) has increased its regular dividend at a CAGR of 19% over the last decade, far outpacing its peers. Moreover, the company has never cut or suspended its payouts in 27 years, reflecting both the durability of its business and its strong commitment to delivering shareholder value.
EOG Resources, Inc. (NYSE:EOG) was also recently included in our list of the 14 Cheap High Dividend Stocks to Buy Right Now.
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.
5. Kinder Morgan, Inc. (NYSE:KMI)
No. of Hedge Fund Holders: 59
Dividend Yield as of Sep. 19: 4.26%
Next on our list of Best Oil and Gas Dividend Stocks is Kinder Morgan, Inc. (NYSE:KMI), a company that paid dividends of $1.3 billion in the first half of 2025. KMI declared a quarterly dividend of $0.2925 per share in July, which is $1.17 per share annualized and 2% up from its 2024 dividend.
With a solid backlog of $9.3 billion at the end of Q2 2025, Kinder Morgan, Inc. (NYSE:KMI) has ample room for growing its cash flows and thus shareholder returns. Notably, the company also disclosed that due to tax rule changes, it expects to avoid paying cash taxes in 2026 and 2027 – providing significant support to cash flows.
The ongoing LNG boom also presents a significant growth opportunity for Kinder Morgan, Inc. (NYSE:KMI), as 40% of all American LNG exports flow through its pipelines. With the Trump administration pushing an export-driven trade policy, this structural advantage is only becoming more valuable.
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.
4. Schlumberger Limited (NYSE:SLB)
No. of Hedge Fund Holders: 63
Dividend Yield as of Sep. 19: 3.32%
Schlumberger Limited (NYSE:SLB) completed the acquisition of ChampionX Corporation in July, bringing in the latter’s $850 million in revenue and $190 million in adjusted EBITDA. The deal is expected to deliver $400 million in annual pre-tax synergies within three years of closing through revenue growth and cost savings. Following the integration of ChampionX, Schlumberger expects second-half 2025 revenue to be between $18.2 billion and $18.8 billion.
Schlumberger Limited (NYSE:SLB) announced a quarterly cash dividend of $0.285 per share in July and boasts an annual dividend yield of 3.32% as of the writing of this piece. The company aims to distribute $4 billion through dividends and share repurchases this year, staying true to its commitment of returning more than 50% of its free cash flow to shareholders.
First Eagle Investments stated the following about Schlumberger Limited (NYSE:SLB) in its Q2 2025 investment letter:
“Schlumberger Limited (NYSE:SLB)is the world’s largest oilfield service company. In addition to commodity price weakness during the quarter, share performance was dampened by concerns that tariffs and trade uncertainty could negatively impact oilfield service providers. While rig counts and drilling activity have declined this year, the majority of the slowdown has been in North America. In contrast, OPEC+ has increased production, which should benefit SLB given that it derives approximately 80% of its revenue from international and offshore markets.”
Schlumberger Limited (NYSE:SLB) is the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the global energy industry.
3. ConocoPhillips (NYSE:COP)
No. of Hedge Fund Holders: 72
Dividend Yield as of Sep. 19: 3.38%
With its deep, diverse, and durable portfolio, ConocoPhillips (NYSE:COP) boasts a breakeven level of less than $40 a barrel, putting the company at an advantage to navigate sector volatility. Still, COP remains focused on reducing costs and earlier this year, the oil and gas giant’s capital allocation strategy enabled it to reduce its FY 2025 capital spending guidance by $500 million without impacting production levels.
ConocoPhillips (NYSE:COP) returned $4.7 billion to its shareholders in the first half of 2025, equal to around 45% of its CFO and consistent with its full-year guidance and long-term track record. The company announced a quarterly dividend of $0.45 per share in August.
ConocoPhillips (NYSE:COP) expects to add $7 billion to its free cash flow by 2029, thanks to its investments in Alaska and the ballooning LNG sector, in addition to the additional cost and margin enhancements from its merger of Marathon Oil last year. This should allow the energy company to organically grow its shareholder payouts in the coming years.
ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.
2. Chevron Corporation (NYSE:CVX)
No. of Hedge Fund Holders: 76
Dividend Yield as of Sep. 19: 4.37%
Chevron Corporation (NYSE:CVX) made headlines this year when it completed the acquisition of Hess, adding its coveted 30% stake in the Stabroek Block in offshore Guyana to the company’s portfolio. The integration of these low-breakeven, high-value assets is expected to contribute significant cash flow, leading Chevron to increase its 2026 additional free cash flow guidance to $12.5 billion.
Chevron Corporation (NYSE:CVX) returned over $5 billion to shareholders for the 13th consecutive quarter in Q2 2025. The company’s consistently strong financial performance has allowed it to increase its dividend payout for 38 consecutive years. Moreover, CVX has delivered peer-leading dividend growth over the past decade, putting it among the Best Oil and Gas Dividend Stocks to Buy Now.
With breakeven levels of as low as $30 per barrel, Chevron Corporation (NYSE:CVX) remains well-positioned to brave through cycles of high volatility. Moreover, the company is working aggressively to reduce costs, with a target of $2 billion – $3 billion in structural cost savings by the end of 2026.
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.
1. Exxon Mobil Corporation (NYSE:XOM)
No. of Hedge Fund Holders: 88
Dividend Yield as of Sep. 19: 3.49%
A behemoth of the global oil and gas industry, Exxon Mobil Corporation (NYSE:XOM) has increased 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. However, the company still has no intentions of slowing down, with a target to produce an additional $20 billion in earnings and $30 billion in cash flow by 2030.
Such deep pockets have allowed Exxon Mobil Corporation (NYSE:XOM) to distribute industry-leading payouts, with returns of more than $125 billion in dividends and buybacks over the last five years. Moreover, the company has raised its dividends for 42 consecutive years, putting it among the 10 Best S&P Dividend Stocks to Invest in.
Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world. The company operates facilities or markets products around the globe and explores for oil and natural gas on six continents
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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