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Examples of High-Yield Oil Dividend Stocks

Sustainability doesn't mean zero oil policy, and these examples of high-yield oil dividend stocks are here to prove it.

Marcel Deer - Writer for Fortrade
By Marcel Deer
a man taking a selfie in front of a tv
Edited by Dragan Stevanovic

Published May 21, 2024.

an oil rig with the stock market graph

Oil dividend stocks have been popular among those wanting sound investments with minimal intervention. Still, some believe that the ongoing climate crisis and increasing calls for renewable energy solutions mean that these stocks are on borrowed time.

The numbers remain strong: regular oil and gas dividends are projected to grow from $274 billion in 2023 to $287 billion in 2024. And oil companies adapt and continue to invest in green alternatives.

» Considering CFDs? Here's how to trade crude oil CFDs in a volatile market.

Note: Fortrade offers the ability to trade the price changes of instruments with CFDs and NOT to buy/sell ownership of instruments themselves. All the information in this blog is purely educational and should NOT be considered advice.

Some High-Yield Oil Dividend Stocks

  1. Chevron (NYSE:CVX)
  2. ExxonMobil (NYSE:XOM)
  3. Royal Dutch Shell (LON:SHEL)
  4. Saudi Aramco (TADAWUL:2222)
  5. EOG Resources Inc. (NYSE:EOG)

1. Chevron (CVX)

Chevron is a global leader with diverse operations across the oil and gas industry.

Chevron has increased its shareholder dividends over 36 consecutive years. Steady growth has seen its dividends increase from $1.42 per quarter in 2022 to $1.51 in 2023, making a 3.6% yield in Q1 2023.

With historic yields between 3 and 6%, Chevron has been considered one of the more stable oil dividend stocks in the past decade.

Looking ahead, Chevron expects to increase production at a compound annual growth rate of 3% across the next five years. By 2027, they want to achieve a 12% return on capital employed by increasing margins in the upstream business.

These assumptions depend on Brent Crude Oil achieving a price of $60 per barrel. Chevron's management has said that would help to further increase dividends over the next five years.

2. ExxonMobil (XOM)

ExxonMobil is one of the world's largest oil companies, producing an estimated 1.3 million daily barrels.

The company also operates deep-water, heavy oil, and Liquified Natural Gas (LNG) assets across 20 countries worldwide.

Exxon's global operations have helped shareholders enjoy dividends of at least 3% since 2015, rising to 9.5% in Q3 2020. Dividends rose by 3.4% in Q3 2022 from their value of $0.88 to $0.91 per share.

ExxonMobil's commitment to increasing capital returns to shareholders is now 39 years long.

As its debt-to-capital rate continues to reduce from 29.2% in 2020 to 16.9% at the end of 2022, Exxon's improving balance sheet does inspire confidence.

3. Saudi Aramco (2222.SR)

Saudi Aramco is one of the best-known global pioneers in the industry.

Aramco's digital innovation centers are industry leaders in developing new energy, transport, and manufacturing solutions for its customers.

This commitment to innovation saw a vast 376.69% leap in dividends in 2020, from $0.015 to $0.071 per stock.

The innovative approach also contributes to the company's growth strategy and the stability of its dividends.

» Learn about 5 other emerging technologies in 2024

4. Royal Dutch Shell (SHEL)

Royal Dutch Shell has positioned itself as one of the leading oil companies with sustainability and eco-friendly practices at their core.

Shell invested heavily in biofuels, ECV charging points in its gas stations, an electric vehicle fleet, and several renewable energy projects.

Its commitment to sustainability has driven growth in its shareholders' dividends, rising by 32.4% from $0.50 per share in Q3 2022 to $0.662 per share in Q3 2023.

The expectations are that Shell's commitment to sustainability drives their commitment to providing shareholders with consistent dividend payouts.

5. EOG Resources Inc. (EOG)

EOG Resources belongs to the high-risk oil companies. The Texas-based company focuses heavily on onshore gas in North America. Their financial performance largely depends on crude oil prices.

The company is planning $4.4 billion in authorized buybacks and a commitment to return 60% of cash flow into shareholders' pockets with a 2.6% forward dividend.

» Discover stock trading essentials and long-term vs short-term positions

Additional Possibilities

With diverse options on the market, there are other high-yield oil dividend stocks to explore.

For example, BP offers a 4.7% dividend yield with a Price/Earnings Ratio of 4.2, while Eni has a smaller overall market cap of just over $50 billion but dividend yields of 6.1% and P/E of 9.6.

» For a 360° view, use CFD trading analysis to make better trading decisions

Fueling Your Portfolio With Smart Investments

Diversifying your investment portfolio with high-yield oil dividends is still an option, even as the industry shifts towards sustainability and renewable sources.

The green policy commitment drives the long-term stability of oil dividend stocks and makes them viable investment options in a diverse portfolio.

As with any instrument, conduct comprehensive research before committing funds to any investment.