Investors seeking reliable income and growth should monitor the top five oil dividend stocks in 2024. Chevron offers a 4% yield with projected production growth. EOG Resources, the shale leader, boasts a 22% dividend CAGR since 1999. ExxonMobil, the diversified oil giant, has raised dividends annually for 41 years. Midstream player Kinder Morgan provides financial stability and a reliable income stream. Refining powerhouse Phillips 66 delivers a 2.8% yield and strong financial performance. Examining the unique strengths of these industry leaders can provide valuable insights for building a robust portfolio.
1. Chevron: Reliable Dividend Payer
Why is Chevron considered a reliable dividend payer among oil companies?
The company’s current dividend yield of 4.0% and its projected 3% production growth CAGR, along with a targeted 12% return on capital employed by 2027, make it an appealing option for dividend investors. Chevron is one of the largest global oil companies, known for its steady dividend growth and consistent production targets.
Investors can expect stable dividends from Chevron, making it an attractive choice for dividend investing.
With a strong balance sheet and a commitment to shareholder returns, Chevron stands out as a top oil company to watch for dividend investing in 2024.
The company’s reliable dividend payouts, coupled with its growth projections and capital efficiency targets, position it as a compelling investment for those seeking stable income and long-term value in the oil and gas sector.
2. EOG Resources: Shale Leader
EOG Resources, a leading U.S.-based oil company, has established itself as a prominent player in the shale energy space, leveraging its expertise and financial strength to deliver consistent returns to shareholders. With a robust cash position and a remarkable 22% compound annual growth rate in dividends since 1999, EOG Resources has consistently prioritized shareholder value.
As a shale leader, the company’s focus on efficient operations and sustainable growth has been a key driver of its success. In 2024, EOG Resources is targeting $3.30 per share in dividends, further highlighting its commitment to rewarding investors. This financial strength and dividend growth make EOG Resources a top choice for dividend-focused investors in the oil and gas sector.
Amid the dynamic landscape of the energy industry, EOG Resources’ ability to navigate the challenges and capitalize on opportunities positions it as a standout investment option for those seeking both stability and growth potential in 2024.
3. ExxonMobil: Diversified Oil Giant
As the diversified oil giant, ExxonMobil stands out in the energy landscape with its extensive global operations, robust financial performance, and long-standing commitment to shareholder returns. With a market capitalization of $399 billion, the company is a force to be reckoned with, producing 1.3 million net oil-equivalent barrels daily. Impressively, ExxonMobil has a dividend yield of 5.3%, reflecting its strong cash flow generation and ability to reward investors. The company has a remarkable history of raising dividends annually for 41 consecutive years, showcasing its financial discipline and adaptability.
Equally impressive is ExxonMobil’s debt reduction efforts, having significantly lowered its total debt by $7 billion in 2022. This prudent financial management, combined with the company’s efficient use of free cash flow, underscores its status as a top oil company. With a current dividend yield of 3.8%, ExxonMobil’s stock price appears attractive, particularly considering its diversified energy portfolio and proven track record of dividend growth.
4. Kinder Morgan: Midstream Opportunity
Kinder Morgan, a leading energy infrastructure company, operates a robust network that transports an impressive 2.4 million barrels of oil and other products daily, positioning it as a prominent midstream player within the oil industry. Committed to guaranteeing its capital expenditures and dividends through self-funding, the company maintains financial stability, offering investors a reliable income stream.
With $3.3 billion in projects committed to its backlog, Kinder Morgan is poised to capitalize on growth opportunities in the oil industry.
As a midstream operator, Kinder Morgan provides essential services that support the oil industry’s value chain. Its focus on steady cash flows and reliable dividends makes it an attractive investment proposition for those seeking exposure to the midstream sector.
5. Phillips 66: Refining Strength
Shifting the focus to another prominent player in the oil industry, Phillips 66 operates a diversified energy business with a strong emphasis on refining operations, boasting a robust refining capacity of 2.2 million barrels per day. As a notable player in the oil industry, with a market capitalization of $59 billion, the company’s refining segment contributes significantly to its overall financial performance.
Notably, Phillips 66 is committed to providing stable dividends to its shareholders, showcasing a dividend yield of 2.8%. This commitment to shareholder value underscores the company’s financial strength and stability.
The key highlights of Phillips 66’s investment case include:
- Diversified energy business with a strong focus on refining operations
- Robust refining capacity of 2.2 million barrels per day
- Commitment to stable dividends and a dividend yield of 2.8%
- Noteworthy market capitalization of $59 billion
- Refining segment’s strong contribution to overall financial performance
Frequently Asked Questions
What Are the Best Stocks for Dividends in 2024?
Based on the provided background information, the best oil stocks for dividends in 2024 may include Chevron, EOG Resources, ExxonMobil, Kinder Morgan, and Phillips 66 due to their strong production growth, dividend payouts, and financial performance.
What Are the Top 5 Dividend Stocks to Buy?
The top 5 dividend stocks to buy in 2024 based on their strong financial performance, dividend growth, and capital projects include Chevron, EOG Resources, ExxonMobil, Kinder Morgan, and Phillips 66.
Which Oil Company Pays the Highest Dividend?
Among the major oil companies, Eni stands out with the highest dividend yield of 6.5%, followed by ExxonMobil at 5.3%, BP at 4.7%, Chevron at 4.0%, and Shell at 3.9%.
What Are the Three Dividend Stocks to Buy and Hold Forever?
The three dividend stocks to buy and hold forever are Chevron, ExxonMobil, and EOG Resources. These oil and gas companies have demonstrated consistent dividend growth, robust production targets, and strong financial performance, making them attractive long-term investments.