Which oil company pays the highest dividend?

Icahn Enterprises (NASDAQ:IEP) is a conglomerate that has significant energy operations. As of early December 2025, its dividend had a trailing yield of 27.1%.

How often does ExxonMobil pay dividends?

ExxonMobil makes dividend payments on a quarterly basis.

Are oil dividend stocks a good investment?

Because investors have various investing goals, there's no single answer. Investors must consider their personal goals, risk tolerance, and portfolio composition before putting money into any stock.

How are dividends from oil stocks taxed?

The rate at which dividends from oil stocks are taxed depends on whether the distributions are qualified dividends or nonqualified dividends. Another important thing to be mindful of is whether the company is a master limited partnership or other limited partnership and issues a Schedule K-1.

What factors affect oil company dividends?

A variety of factors can influence how companies allot dividends, including energy prices and the development of significant growth projects.

How do dividends from oil stocks compare to other sectors?

For the most part, oil stocks provide higher dividend yields than stocks from other sectors. While the yields may be higher, there's also the possibility that dividends of oil stocks fluctuate when the companies contend with swings in energy prices.

How can I diversify my oil dividend stock investments?

To gain diverse exposure to oil dividend stocks, look for businesses that operate in various links of the energy value chain. In addition to oil supermajors that are vertically integrated, like Chevron and ExxonMobil, investors can look for companies that have concentrated operations, such as pipeline stock Kinder Morgan.

Best Oil Dividend Stocks to Buy in 2026

Oil companies have historically made strong dividend stocks. Here are the top picks to consider adding to your portfolio.

By Scott Levine – Updated Jan 30, 2026 at 1:34 PM EST | Fact-checked by Frank Bass

Key Points

Global oil demand projected to increase, suggesting continued relevance of oil stocks.
Leading oil companies like Chevron and ExxonMobil show strong financial returns and growth.
Investors should consider historical dividend performance and company financial health.

For investors prospecting the market for oil dividend stocks, deciding among the dozens of energy stocks that are also dividend stocks can be daunting. Making a sound choice can help investors sit back and enjoy watching portfolios become energized with a stream of passive income.

Although oil stocks have often been a profitable choice for investors, increasing calls for the adoption of renewable energy may suggest that oil companies -- and oil stocks -- will soon be in decline. A more likely scenario is that companies involved in oil production will continue to play a significant role, especially since petroleum is found in a variety of agricultural, pharmaceutical, and cosmetic products.

In the near term, the market is expected to continue growing. The International Energy Agency (IEA), for example, projects global oil demand will increase by 2.5 million barrels per day between 2024 and 2030, when it will reach about 105.5 million barrels per day.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Chevron (NYSE:CVX)	$393.0 billion	3.51%	Oil, Gas and Consumable Fuels
EOG Resources (NYSE:EOG)	$71.4 billion	3.00%	Oil, Gas and Consumable Fuels
ExxonMobil (NYSE:XOM)	$639.7 billion	2.63%	Oil, Gas and Consumable Fuels
Kinder Morgan (NYSE:KMI)	$74.2 billion	3.51%	Oil, Gas and Consumable Fuels
Phillips 66 (NYSE:PSX)	$69.8 billion	2.80%	Oil, Gas and Consumable Fuels

Data as of Mar 13, 2026. Showing 5 of 5 tickers.

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NYSE: CVX

Chevron

Today's Change

(-0.98%) $-1.93

Current Price

$195.04

Key Data Points

Market Cap

$393B

Day's Range

$194.71 - $197.62

52wk Range

$132.04 - $198.88

Volume

197K

Avg Vol

12M

Gross Margin

14.66%

Dividend Yield

3.51%

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Chevron forecasts production increasing at a compound annual growth rate (CAGR) of about 6% from 2024 through 2026, assuming that the price of oil benchmark Brent crude averages $70 per barrel. This, in turn, should contribute to growing free cash flow (FCF). From Permian assets alone, management projects FCF growth of about $2 billion by 2026.

Management believes that the production growth will contribute to greater profitability. Although Chevron reported a 7.5% adjusted return on capital employed (ROCE) in the second quarter of 2025, management is targeting an ROCE that tops 12% by 2027 if the price of Brent crude averages $60 per barrel. Similarly, with the same price sensitivity, Chevron projects greater free cash flow.

Traded on the New York Stock Exchange for more than a century, Chevron is now the only energy stock in the Dow Jones Industrial Average. For 38 consecutive years, Chevron has increased its dividend, and its dividend growth may very well continue to rise in the near future. Management has said it expects to increase its distribution to shareholders over the next five years if the price of Brent crude averages more than $50 per barrel.

2. EOG Resources

Founded in 1985, EOG Resources has developed into one of the largest publicly traded exploration and production (E&P) companies based on market capitalization. Although the company has assets in Australia and the Caribbean, EOG's properties in the U.S. -- in the Rocky Mountains, Permian Basin, and South Texas -- are predominantly responsible for the company's oil production.

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NYSE: EOG

EOG Resources

Today's Change

(0.15%) $0.20

Current Price

$133.24

Key Data Points

Market Cap

$71B

Day's Range

$132.78 - $133.92

52wk Range

$101.59 - $136.14

Volume

92K

Avg Vol

5.1M

Gross Margin

40.75%

Dividend Yield

3.00%

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Presumably, its many untapped resources will be a source of continuing production. As of the end of 2024, the company reported it had total estimated net proved reserves of 4.75 billion barrels of oil equivalent, suggesting that EOG has plenty of opportunities to extract oil from the ground.

One of the most appealing aspects of EOG Resources is its robust financial position. E&P companies often carry significant debt on their balance sheets, yet EOG Resources ended the third quarter of 2025 with $5.5 billion in total liquidity.

To ensure its financial health, the company has targeted a total debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio below 1.0 in the case that there's a downturn in energy prices and oil benchmark West Texas Intermediate drops to $45 per barrel.

Proving adept at managing its capital, EOG has also demonstrated a commitment to returning cash to shareholders. Should the company achieve its forecast of paying $3.95 per share in dividends for 2025, it will mean that EOG will have raised its dividend at a 14.5% CAGR since 2000.

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Given its track record of rewarding investors and generating strong free cash flow that has averaged 22.5% of revenue over the past three years, EOG Resources is an oil dividend stock worth digging into.

3. ExxonMobil

Operating conventional oil and gas assets in almost 20 countries around the world, ExxonMobil reported 2024 net production of 4.3 million oil-equivalent barrels daily, and it projects total upstream production will grow to 5.5 million oil-equivalent barrels per day by 2030. But there's much more than conventional assets to the company's upstream business.

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NYSE: XOM

ExxonMobil

Today's Change

(0.70%) $1.07

Current Price

$154.60

Key Data Points

Market Cap

$640B

Day's Range

$153.00 - $155.77

52wk Range

$97.80 - $159.60

Volume

380K

Avg Vol

20M

Gross Margin

21.56%

Dividend Yield

2.63%

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NYSE: KMI

Kinder Morgan

Today's Change

(-0.24%) $-0.08

Current Price

$33.28

Key Data Points

Market Cap

$74B

Day's Range

$33.23 - $33.58

52wk Range

$23.94 - $34.24

Volume

138K

Avg Vol

14M

Gross Margin

34.74%

Dividend Yield

3.51%

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In addition, Kinder Morgan operates 65 liquids terminals that store fuels and offer blending services for ethanol and biofuels. There's ample room for growth as well. Kinder Morgan's project backlog totaled $9.3 billion at the end of third-quarter 2025.

When you survey the energy landscape for interesting oil dividend stocks, it's not uncommon to find companies risking their financial well-being to satisfy shareholders with lofty dividends. But that's hardly the case with Kinder Morgan.

Over the past seven years, the company has self-funded its capital expenditures and dividends. To put the security of the dividend in perspective, consider that Kinder Morgan has generated an average of $1.1 billion in free cash flow after dividends were paid annually over the past five years.

5. Phillips 66

Although Phillips 66 isn't involved with exploration and production, the company has a notable presence in various other aspects of the oil industry. The company's midstream business consists of 72,000 miles of pipeline located in the U.S. The company also operates 11 refineries, which have a daily crude throughput capacity of 1.8 million barrels in the U.S. and Europe.

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NYSE: PSX

Phillips 66

Today's Change

(-0.10%) $-0.17

Current Price

$173.92

Key Data Points

Market Cap

$70B

Day's Range

$172.20 - $176.10

52wk Range

$91.01 - $178.38

Volume

71K

Avg Vol

2.8M

Gross Margin

4.94%

Dividend Yield

2.80%

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Phillips 66 refines crude oil, as well as other feedstocks, into gasoline, distillates, and aviation fuels. Rounding out the company's downstream business, Phillips 66 markets gasoline, diesel, and aviation fuel through about 7,200 independently owned outlets in 48 states and Puerto Rico, plus 1,300 company- and dealer-owned outlets in Europe.

Phillips 66 was spun off from ConocoPhillips (COP +0.23%) into its own publicly traded company in 2012. Should the company succeed in meeting its dividend target of $4.75 per share for 2025, it will mean the company will have raised its payout at a 15% CAGR since it started paying dividends in 2012.

Management seems likely to continue returning capital to shareholders by way of dividends in addition to share buybacks. On the company's second-quarter 2025 conference call, CEO Mark Lashier affirmed that "returning over 50% of net operating cash flow to shareholders through share repurchases and a secure, competitive, and growing dividend" is one of the company's top priorities.

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The bottom line

There's no secret formula to identifying the best oil dividend stocks. Still, there are certainly some things that should be on prospective investors' radars, including the company's balance sheet, its ability to generate cash, and its performance history.

A company may sport a high dividend yield, but if it's not in good financial health, that alluring dividend may not be around for long. With the above-mentioned companies, investors hunting for oil dividends to power their portfolios don't need to worry much.

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Oil dividend stocks FAQ

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About the Author

Scott Levine is a contributing Motley Fool stock market analyst covering energy, industrials, technology, and materials. He is also a high school English teacher and a small business owner. He holds a bachelor’s degree in English and creative writing from Binghamton University, a master’s degree in secondary education from Adelphi University, and an advanced certificate in school building leadership from CUNY Queens College. A crossword puzzle enthusiast, he has solved more than 3,100 New York Times puzzles with a 97% solve rate.

TMFProudMonkey

@TMFProudMonkey

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron, Kinder Morgan, and Phillips 66. The Motley Fool recommends ConocoPhillips and EOG Resources. The Motley Fool has a disclosure policy.

Advantages and risks of investing in oil dividend stocks

While identifying the desire to invest in oil stocks that pay dividends is a good first step, it's important that potential investors ensure that the advantages and perils of investing in oil dividend stocks align with their individual goals. Here are some of the potential benefits of an investment in oil dividend stocks:

Many energy companies have long histories of paying dividends -- even during times of slumping energy prices.

Portfolio diversification.

The energy is cyclical, and during times of rising oil prices, energy companies may boost their payouts higher.

Of course, risks are also present with oil dividend stocks, so investors must acknowledge the following before clicking the buy buttons:

Sustained downturns in energy prices may motivate companies to conserve capital and maintain financial well-being, leading them to slash or eliminate dividends.

Many energy companies are diversifying their operations and developing low-carbon businesses, which may result in the companies favoring growth projects over dividends.

Energy companies may suffer from oil spills or other environmental disasters that result in litigation or other financial penalties, prompting them to slash dividends.

What to consider before investing in oil dividend stocks

Before choosing to fuel your portfolio with passive income from oil dividend stocks, there are some important considerations. Looking at the dividend histories of the potential stock purchases is a savvy first step. Investors may find that the stocks in question have a history of boosting the payout and subsequently reducing it.

Another pressing concern is whether companies are jeopardizing their financial health to placate shareholders. There are different ways to determine this, but one place to start is with the payout ratio. If companies consistently return dividends in excess of their profits -- resulting in payout ratios exceeding 100% -- it's a red flag.

How to invest in oil dividend stocks

Once investors decide to hit the gas and proceed with an oil dividend stock investment, there are only a few simple steps they need to take.

Open your brokerage app: Log in to your brokerage account, where you manage your investments.

Search for the stock: Enter the stock ticker or company name into the search bar to bring up the stock's trading page.

Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.

Select the order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.

Submit your order: Confirm the details and submit your buy order.

Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Best Oil Dividend Stocks to Buy in 2026

Oil companies have historically made strong dividend stocks. Here are the top picks to consider adding to your portfolio.

Key Points

Key Data Points

2. EOG Resources

Key Data Points

3. ExxonMobil

Key Data Points

Key Data Points

5. Phillips 66

Key Data Points

The bottom line

Related investing topics

Best Solar Energy Stocks to Buy in 2026 and How to Invest

Best Oil ETFs of 2026

Best Natural Gas Stocks to Buy in 2026 and How to Invest in Them

The Largest Energy Companies by Market Cap in March 2026

Oil dividend stocks FAQ

Which oil company pays the highest dividend?

Which oil company pays the highest dividend?

How often does ExxonMobil pay dividends?

How often does ExxonMobil pay dividends?

Are oil dividend stocks a good investment?

Are oil dividend stocks a good investment?

How are dividends from oil stocks taxed?

How are dividends from oil stocks taxed?

What factors affect oil company dividends?

What factors affect oil company dividends?

How do dividends from oil stocks compare to other sectors?

How do dividends from oil stocks compare to other sectors?

How can I diversify my oil dividend stock investments?

How can I diversify my oil dividend stock investments?

About the Author

Stocks Mentioned

Our Guides

Premium Investing Services

Oil dividend stocks FAQ

Which oil company pays the highest dividend?

Which oil company pays the highest dividend?

How often does ExxonMobil pay dividends?

How often does ExxonMobil pay dividends?

Are oil dividend stocks a good investment?

Are oil dividend stocks a good investment?

How are dividends from oil stocks taxed?

How are dividends from oil stocks taxed?

What factors affect oil company dividends?

What factors affect oil company dividends?

How do dividends from oil stocks compare to other sectors?

How do dividends from oil stocks compare to other sectors?

How can I diversify my oil dividend stock investments?

How can I diversify my oil dividend stock investments?

Best Solar Energy Stocks to Buy in 2026 and How to Invest

Best Oil ETFs of 2026

Best Natural Gas Stocks to Buy in 2026 and How to Invest in Them

The Largest Energy Companies by Market Cap in March 2026

Key Data Points

Top dividend oil stocks to consider

1. Chevron

2. EOG Resources

3. ExxonMobil

4. Kinder Morgan

5. Phillips 66

Advantages and risks of investing in oil dividend stocks

What to consider before investing in oil dividend stocks

How to invest in oil dividend stocks

The bottom line

Related investing topics

FAQ

Key Data Points

Key Data Points

Key Data Points

Key Data Points