5 Best Oil and Gas Dividend Stocks to Buy Right Now

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1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 98

Dividend Yield as of Mar. 5: 2.75%

Topping our list of the Best Oil and Gas Dividend Stocks is Exxon Mobil Corporation (NYSE:XOM), one of the largest integrated fuels, lubricants, and chemical companies in the world.

On March 2, BofA analyst Jean Ann Salisbury raised the firm’s price target on Exxon Mobil Corporation (NYSE:XOM) from $131 to $151, but kept its ‘Neutral’ rating on the shares. The updated target comes amid the tensions in the Middle East after the US and Israel launched strikes on Iran. Tehran then retaliated with its own flurry of rockets and drones, in addition to closing down the Strait of Hormuz.

The strategic move has rocked the global energy industry, as it threatens to significantly disrupt supplies and choke around a fifth of the global crude oil and LNG supply. As a result, the Brent crude price has surged to over $93 per barrel, reaching its highest level since June 2023.

Oil prices have soared, especially after a statement by Qatar’s energy minister, Saad al-Kaabi, that he expects all oil and gas exporters in the Gulf to stop production within days. According to Mr. Kaabi, a prolonged closure of the waterway of Hormuz could lead to oil prices soaring to even $150 a barrel in two to three weeks. According to Mr. Kaabi, a prolonged closure of the waterway of Hormuz could lead to oil prices soaring to even $150 a barrel in two to three weeks.

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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