Companies like ConocoPhillips (COP +3.29%) and ExxonMobil (XOM +0.46%) are finding themselves at the right place at the right time just now. Not only do they benefit from rising oil prices, but these are also the types of investments people seek out during times of economic uncertainty, thanks to their dividend payouts that can be supported by those higher oil prices.
Shares of both companies have already climbed more than 37% just this year, so pairing more potential stock price appreciation with dividend returns is a powerful combination.
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ConocoPhillips: The oil and natural gas explorer
ConocoPhillips is focused on oil and gas exploration and production, with operations across 14 countries.
Like other energy companies, ConocoPhillips has been sensitive to commodity price swings, as it reported a loss and cut its dividend in 2016 when oil prices fell for a time down to around $30 a barrel.
But with oil prices where they are currently at $100-plus a barrel, ConocoPhillips benefits greatly, as it can turn a profit as long as oil prices exceed the mid-$40s range. Even if oil prices bounce around daily in the range they have been in over the last two weeks, those are still great margins.
NYSE: COP
Key Data Points
That breakeven cost is expected to dip even further to the low $30s when its Willow oil project is up and running, which can support more shareholder-friendly moves, such as buybacks and dividend payouts.
ExxonMobil: The diversified energy company
Like ConocoPhillips, ExxonMobil has oil and gas exploration and production operations. The two differ in that ExxonMobil's focus and offerings extend beyond oil and natural gas exploration. The energy giant's products include sealants and adhesives that are used in industries ranging from automotive to construction to packaging. It also offers lubricants and motor oils for use in personal vehicles and for businesses.
In addition, through its low-carbon solutions segment, ExxonMobil offers power sources with reduced emissions. The company noted in its February 2026 presentation that meeting data center demand through low-carbon power is an opportunity. ExxonMobil also maintains a low breakeven price and can turn a profit even when oil is priced at $35 a barrel. That breakeven price will improve to $30 a barrel in 2030 as key projects in the Permian Basin come online.
NYSE: XOM
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There are growth opportunities within ExxonMobil's portfolio, but that diversification also provides reliable revenue streams, allowing ExxonMobil to pursue shareholder-friendly moves, like increasing its dividend payout, which it has become known for, with 43 consecutive years of increased payouts.
The winning energy dividend stock
Between the two companies, both can continue to benefit as oil prices remain elevated, but I would give the edge in this battle to ExxonMobil. Both companies are sensitive to oil price swings, geopolitical issues, and extreme weather that can interrupt operations, but ExxonMobil's broader energy portfolio can help it to offset any losses if oil prices decline rapidly.
ExxonMobil's forward price-to-earnings (P/E) ratio of 15 is slightly higher than ConocoPhillips' forward P/E of 14.1. That higher forward P/E ratio for ExxonMobil may be worth paying up for because of the company's more diversified energy portfolio and revenue streams.
In regard to the dividend payout, owning shares of ConocoPhillips will offer a higher yield, with its dividend yielding right around 2.5%, while ExxonMobil's dividend yields 2.4%.
But keep in mind that ExxonMobil has been able to offer more consistency with its payout. As mentioned earlier, ConocoPhillips had to cut its dividend back in 2016, while ExxonMobil has increased its payout for 43 consecutive years. For me, that slightly lower yield at this moment is worth accepting in exchange for the consistency in payouts that ExxonMobil has offered for decades.
