Is it good to invest in oil stocks?

The world is slowly moving away from fossil fuels toward green alternatives, but that transition will take decades. For the foreseeable future, oil stocks remain an attractive way to invest in the overall health of the global economy because so much of what we do -- from transportation to industry to petrochemicals -- relies on oil.

What oil stocks did Warren Buffett buy?

Buffett owned a number of energy stocks throughout his tenure at Berkshire Hathaway (NYSE:BRKB), but he is best known for the company's large stakes in Occidental Petroleum (NYSE:OXY) and Chevron.

What oil stocks pay a dividend?

Most oil companies pay dividends. Oil giants like ExxonMobil and Chevron have a long history of steadily raising their dividends. Investors looking for dividends should also consider pipeline companies. Many pipeline companies are master limited partnerships, a structure designed to pass income through to investors as distributions.

What is the market capitalization of oil stocks?

The largest oil stock by market capitalization is Saudi Aramco, valued at $1.8 trillion, followed by ExxonMobil ($619 billion) and Chevron ($370 billion). The top five oil stocks alone account for more than $3 trillion in market capitalization in June 2026.

7 Best Oil Stocks for 2026 and How to Invest

By Matthew DiLallo – Updated Jun 2, 2026 at 1:42 PM EST | Fact-checked by Parker Hicks

Key Points

ConocoPhillips expects robust free cash flow growth through 2029, supporting superior dividend growth.
Devon Energy's significant stock repurchase program and dividend growth make it attractive.
Enbridge offers stable returns backed by long-term contracts, with a strong track record of dividend growth.

Oil companies do more than drill. The industry includes producers that pull oil out of the ground, refiners that turn crude into gasoline and jet fuel, and pipeline companies that move energy around and collect toll-like fees. That diversity matters because each part of the oil chain wins and loses in different environments.

If you want exposure to oil, the goal shouldn’t be “pick the stock that benefits most if oil spikes.” It should be to own businesses that can survive the down cycles and still reward shareholders.

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An oil rig at sunset. — Image source: Getty Images.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
ConocoPhillips (NYSE:COP)	$140.8 billion	2.86%	Oil, Gas and Consumable Fuels
Devon Energy (NYSE:DVN)	$53.4 billion	2.07%	Oil, Gas and Consumable Fuels
Enbridge (NYSE:ENB)	$120.0 billion	5.04%	Oil, Gas and Consumable Fuels
ExxonMobil (NYSE:XOM)	$619.2 billion	2.73%	Oil, Gas and Consumable Fuels
Phillips 66 (NYSE:PSX)	$72.3 billion	2.74%	Oil, Gas and Consumable Fuels
Chevron (NYSE:CVX)	$370.1 billion	3.76%	Oil, Gas and Consumable Fuels
EOG Resources (NYSE:EOG)	$72.8 billion	2.95%	Oil, Gas and Consumable Fuels

Data as of Jun 2, 2026. Showing 7 of 7 total entries.

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NYSE: COP

ConocoPhillips

Today's Change

(1.12%) $1.29

Current Price

$116.87

Key Data Points

Market Cap

$141B

Day's Range

$115.36 - $117.45

52wk Range

$85.23 - $135.87

Volume

6.1M

Avg Vol

9.5M

Gross Margin

23.54%

Dividend Yield

2.86%

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2. Devon Energy

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NYSE: DVN

Devon Energy

Today's Change

(-0.19%) $-0.09

Current Price

$46.22

Key Data Points

Market Cap

$53B

Day's Range

$45.75 - $46.86

52wk Range

$30.80 - $52.71

Volume

11.8M

Avg Vol

15.9M

Gross Margin

23.26%

Dividend Yield

2.07%

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Devon Energy (DVN -0.19%) is a U.S.-focused E&P company. It has diversified operations across several low-cost, oil-rich basins. The company's diversification enables it to produce large volumes of low-cost oil and natural gas, generating plenty of cash.

The E&P meaningfully expanded its scale in 2026 through its $21.5 billion all-stock merger with Coterra Energy. The combined company expects to achieve $1 billion in merger synergies by the end of 2027.

The combined company expects to produce more free cash flow, enabling it to return additional money to shareholders. Devon boosted its dividend by 33% after closing the merger and approved an $8 billion repurchase authorization, nearly 15% of its current market capitalization.

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Dividends Per Share

The dividends a company pays out per share and a commonly used per-share metric.

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3. Enbridge

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NYSE: ENB

Enbridge

Today's Change

(2.53%) $1.39

Current Price

$56.32

Key Data Points

Market Cap

$120B

Day's Range

$55.26 - $56.45

52wk Range

$43.59 - $58.45

Volume

2.8M

Avg Vol

4.7M

Gross Margin

30.95%

Dividend Yield

5.04%

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Enbridge (ENB +2.53%) operates one of the biggest oil pipeline systems in the world, transporting 30% of the oil produced in North America. Enbridge also has an extensive natural gas pipeline system that moves 20% of the natural gas used in the United States. Additionally, it has the largest natural gas utility franchise in North America by volume, as well as growing renewable energy operations.

Enbridge's pipeline operations generate stable cash flow, backed by long-term contracts and government-regulated rates (which account for more than 98% of its earnings). That gives it the cash to be one of the best high-yield dividend stocks. Enbridge has increased its dividend for 31 consecutive years (in Canadian dollars).

The company is also investing heavily to expand its energy infrastructure operations. It has billions of dollars of expansion projects underway across its four core franchises. These investments should support 5% annual cash flow per share growth after 2026 and a similar dividend growth rate.

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NYSE: XOM

ExxonMobil

Today's Change

(0.12%) $0.18

Current Price

$149.56

Key Data Points

Market Cap

$619B

Day's Range

$148.50 - $150.83

52wk Range

$101.73 - $176.41

Volume

10.4M

Avg Vol

20.9M

Gross Margin

20.92%

Dividend Yield

2.73%

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As one of the largest oil companies on the planet, ExxonMobil (XOM +0.12%) is a fully integrated supermajor. It operates in every segment of the oil and gas industry, including E&P, midstream, petrochemical manufacturing, refining, and, even further downstream, marketing refined and petroleum products to customers.

ExxonMobil has focused its recent efforts on reducing its costs and boosting efficiency. The oil giant expects to deliver $25 billion in earnings growth and $35 billion in cash flow growth by 2030 at constant prices and margins compared to 2024, implying double-digit annualized growth rates. That positions the oil giant to generate $145 billion in cumulative surplus cash over that period at $65 oil.

This cash flow should continue to protect ExxonMobil's dividend, which it has increased for an industry-leading 43 consecutive years. Exxon also plans to continue buying back shares, with $20 billion of repurchases planned for 2026.

5. Phillips 66

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NYSE: PSX

Phillips 66

Today's Change

(1.28%) $2.30

Current Price

$182.54

Key Data Points

Market Cap

$72B

Day's Range

$179.49 - $183.14

52wk Range

$111.37 - $190.61

Volume

25.5K

Avg Vol

3.1M

Gross Margin

7.04%

Dividend Yield

2.74%

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Phillips 66 (PSX +1.28%) is one of the leading oil refining companies, with operations in the U.S. and Europe. It also has investments in midstream operations and in petrochemicals via its CPChem joint venture with Chevron (CVX +0.93%). Its marketing and specialties business distributes refined products and manufactures specialty products, including lubricants.

Thanks to its large-scale, vertically integrated operations, Phillips 66 is among the lowest-cost refiners in the industry. This is the result of its leveraging its integrated midstream network to obtain the lowest-cost crude for refining and petrochemical feedstocks, as well as its investments in projects that give it higher margins on its products. That enables Phillips 66 to generate lots of cash to return to investors. The refiner has increased its dividend every year since its spin-off from ConocoPhillips in 2012, growing it at a 15% compound annual rate.

Phillips 66 also boasts a strong financial profile, which includes an investment-grade balance sheet with very manageable debt. It also has lots of cash on hand. Its low debt and high cash reserves mean it has ample capital to invest in expansion projects, including renewable fuels.

6. Chevron

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NYSE: CVX

Chevron

Today's Change

(0.93%) $1.72

Current Price

$187.55

Key Data Points

Market Cap

$370B

Day's Range

$184.88 - $188.45

52wk Range

$136.60 - $214.71

Volume

6.5M

Avg Vol

12.3M

Gross Margin

15.15%

Dividend Yield

3.76%

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Chevron is a global energy titan that operates across every stage of the oil and gas value chain. Think of it as a massive, vertically integrated machine that finds energy in the ground, moves it across the world, and turns it into the fuel in your car or the plastic in your phone.

Chevron has a strong balance sheet and a record of 39 consecutive years of dividend increases. The company also bought Hess in 2025 to round out its offerings, including adding a position in high-growth Guyana.

The oil giant expects to deliver an additional $12.5 billion in free cash flow in 2026 at $70 oil, fueled by the Hess deal, major growth capital project completions, and cost-savings initiatives. Meanwhile, Guyana and other catalysts should give Chevron the fuel to grow its free cash flow by more than 10% annually through 2030 at $70 oil.

7. EOG Resources

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NYSE: EOG

EOG Resources

Today's Change

(1.44%) $1.96

Current Price

$138.58

Key Data Points

Market Cap

$73B

Day's Range

$136.22 - $139.24

52wk Range

$101.59 - $151.87

Volume

Avg Vol

4.6M

Gross Margin

40.88%

Dividend Yield

2.95%

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Oil stocks FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Chevron, and Enbridge. The Motley Fool recommends ConocoPhillips, EOG Resources, and Phillips 66. The Motley Fool has a disclosure policy.

7 Best Oil Stocks for 2026 and How to Invest

Key Points

Key Data Points

2. Devon Energy

Key Data Points

3. Enbridge

Key Data Points

Key Data Points

5. Phillips 66

Key Data Points

6. Chevron

Key Data Points

7. EOG Resources

Key Data Points

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1. ConocoPhillips

2. Devon Energy

3. Enbridge

4. ExxonMobil

7. EOG Resources

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Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

5. Phillips 66

6. Chevron

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