In this article, we will look at the 5 Best Oil and Gas Dividend Stocks to Buy Right Now. For a deeper discussion and an extended list, please see 14 Best Oil and Gas Dividend Stocks to Buy Right Now.
5. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 65
Dividend Yield as of Mar. 5: 2.80%
ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.
On March 2, the analysts at Goldman Sachs added ConocoPhillips (NYSE:COP) to the firm’s US Conviction List as part of its monthly update. Goldman expects COP to witness a positive free cash flow inflection over the next three years as it shifts from a long period of heavy project investment into a period of ‘investment harvesting’.
ConocoPhillips (NYSE:COP) revealed in its Q4 2025 earnings call last month that it is targeting a $1 billion annual free cash flow growth through 2028 as it accelerates its cost-cutting measures. Moreover, the company expects a further $4 billion cash flow injection when its Willow project in Alaska comes online in 2029. COP is targeting a $1 billion combined reduction in capital spending and operating costs for the current year. Goldman analysts expect the energy giant to grow its cash flow per share at a CAGR of 24% between 2025 and 2030.
Goldman maintains a ‘Buy’ rating on ConocoPhillips (NYSE:COP), while assigning the shares a price target of $125.
4. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 66
Dividend Yield as of Mar. 5: 3.45%
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 78,000 miles of pipelines and 139 terminals.
On March 4, BofA raised its price target on Kinder Morgan, Inc. (NYSE:KMI) from $35 to $39, while maintaining a ‘Buy’ rating on the shares. The updated target, which indicates an upside of almost 17% from the current levels, comes as the analyst firm sees more runway for gas levered companies and expects them to post additional growth beyond the end of the decade.
Kinder Morgan, Inc. (NYSE:KMI) delivered an adjusted EBITDA growth of 10% YoY and EPS growth of 22% YoY in Q4 2025, with natural gas being the biggest driver of its strong performance. The company is in various stages of development to potentially serve more than 10 Bcf a day of natural gas demand in the power generation sector. Moreover, it is projecting the LNG feed gas demand to average 19.8 Bcf per day in 2026, up 19% from last year.
With an annual dividend yield of 3.45%, Kinder Morgan, Inc. (NYSE:KMI) was recently included in our list of the 14 Best Dividend Stocks to Invest in Under $50.
3. The Williams Companies, Inc. (NYSE:WMB)
Number of Hedge Fund Holders: 80
Dividend Yield as of Mar. 5: 2.77%
The Williams Companies, Inc. (NYSE:WMB), together with its subsidiaries, operates as an energy infrastructure company primarily in the United States.
The Williams Companies, Inc. (NYSE:WMB) received a boost on March 4 when BofA increased its price target on the stock from $79 to $87, while maintaining a ‘Buy’ rating on the shares. The revised target, which reflects an upside potential of over 17% from the current share price, comes as BofA sees more runway for gas levered companies and expects them to witness additional growth post 2030.
The Williams Companies, Inc. (NYSE:WMB) boasts stable and predictable cash flows thanks to its fee-based midstream business. The company earns revenue primarily from transporting, storing, and processing gas, rather than depending on commodity price swings. Moreover, the firm’s business model involves long-term contracts with automatic inflation adjustments, insulating earnings from short-term market volatility.
The Williams Companies, Inc. (NYSE:WMB) is benefiting strongly from the growing natural gas volumes across the United States, especially with the fuel emerging as a top contender to power the ongoing AI boom and the American LNG exports reaching record levels.
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 86
Dividend Yield as of Mar. 5: 3.83%
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.
It was reported on March 2 that Chevron Corporation (NYSE:CVX) has declared force majeure at the Leviathan gas field offshore Israel, after the country’s government ordered the temporary suspension of production. The decision has been taken on security grounds following the outbreak of hostilities with Iran.
Leviathan is the largest gas field in Israel and supplies gas to Egypt and Jordan, in addition to its home country. The field provided 8.1 billion cubic meters of gas to the three markets in the first nine months of 2025, with Egypt accounting for over half of that volume. Given its importance in the region’s energy security, the Chevron-led Leviathan consortium had recently approved a $2.3 billion first phase of an expansion project to help boost the field’s capacity from about 12 Bcm per year to roughly 21 Bcm annually.
With an annual dividend yield of 3.83%, Chevron Corporation (NYSE:CVX) is included among the 14 Best Warren Buffett Dividend Stocks to Buy.
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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