Which oil company pays the highest dividend?

Icahn Enterprises (NASDAQ:IEP) is a conglomerate that has significant energy operations. As of mid-July 2026, its trailing dividend yield was 26.7%.

How often does ExxonMobil pay dividends?

ExxonMobil makes quarterly dividend payments.

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 investing in 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 consider 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 offer higher dividend yields than those of other sectors. While yields may be higher, oil stock dividends can fluctuate as companies contend with energy price swings.

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, such as Chevron and ExxonMobil, investors can look for companies with concentrated operations, such as pipeline stock Kinder Morgan.

Can dividend payments be cut or suspended?

Energy companies can absolutely slash or suspend their dividend payments.

5 Best Oil Dividend Stocks for 2026 and How to Invest

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

By Scott Levine – Updated Sep 15, 2026 at 3:00 PM EST | Fact-checked by Frank Bass

Key Points

Top oil dividend stocks like Chevron, ExxonMobil, and EOG Resources offer high yields with compounded growth projections.
Global oil demand will rise to 105.5 million barrels per day by 2030, impacting oil stock valuations.
Investors must consider the risk of dividend cuts in energy stocks due to fluctuating oil prices and economic shifts.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Chevron (NYSE:CVX)	$409.2 billion	3.40%	Oil, Gas and Consumable Fuels
EOG Resources (NYSE:EOG)	$74.1 billion	2.89%	Oil, Gas and Consumable Fuels
ExxonMobil (NYSE:XOM)	$673.6 billion	2.51%	Oil, Gas and Consumable Fuels
Kinder Morgan (NYSE:KMI)	$68.0 billion	3.87%	Oil, Gas and Consumable Fuels
Phillips 66 (NYSE:PSX)	$105.4 billion	1.90%	Oil, Gas and Consumable Fuels

Data as of Oct 2, 2026. Showing 5 of 5 total entries.

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1. Chevron

Chevron stock is a common option for income investors as the company is one of the world's largest oil companies, with integrated operations spanning multiple aspects of the industry.

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NYSE: CVX

Chevron

Premium Feature

Moneyball Superscore

68/100

Today's Change

(1.42%) $2.89

Current Price

$207.10

Key Data Points

Market Cap

$409B

Day's Range

$202.82 - $207.41

52wk Range

$146.49 - $217.78

Volume

Avg Vol

8.5M

Gross Margin

18.48%

Dividend Yield

3.40%

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The company forecasts production growth at a 6% compound annual rate from 2024 through 2026, assuming Brent crude averages $70 per barrel. This should drive increasing free cash flow (FCF), with Permian assets alone projected to add about $2 billion in FCF by 2026. Management expects this growth to boost profitability, targeting a more than 3% improvement in return on capital employed (ROCE) by 2030 -- up from 7.2% in 2025 -- at the same $70 Brent assumption.

Traded on the New York Stock Exchange for over a century, Chevron is now the only energy stock in the Dow Jones Industrial Average. The company has raised its dividend for 39 consecutive years, and management expects to continue increasing shareholder distributions over the next five years if Brent crude stays above $50 per barrel.

2. EOG Resources

EOG Resources, founded in 1985, is one of the largest publicly traded exploration and production (E&P) companies by market cap. While it holds assets in Australia and the Caribbean, properties in the Rocky Mountains, the Permian Basin, and South Texas account for most of its oil production. With 5.5 billion barrels of oil equivalent in estimated net proved reserves at the end of 2025, EOG has ample resources to tap.

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NYSE: EOG

EOG Resources

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Moneyball Superscore

71/100

Today's Change

(2.58%) $3.55

Current Price

$141.31

Key Data Points

Market Cap

$74B

Day's Range

$137.53 - $142.15

52wk Range

$101.59 - $154.16

Volume

3.1M

Avg Vol

3.1M

Gross Margin

43.24%

Dividend Yield

2.89%

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The company stands out for its financial strength. Unlike many debt-heavy E&P peers, EOG ended 2025 with a conservative net debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio of 0.4, targeting a total debt ratio below 1.0 even if oil drops to $45 per barrel.

EOG has also demonstrated strong shareholder returns. Dividends have grown at a 14.5% compound annual growth rate (CAGR) since 2000, reaching $3.95 per share in 2025. The company generated $4.7 billion in FCF -- all of which was returned to shareholders through dividends and share buybacks, and it projects generating 2026 FCF of $8 billion and returning at least $5.6 billion to shareholders.

Management foresees continued generation of strong free cash flow over the next three years, with cumulative free cash flow of $24 billion from 2026 through 2028 if the oil benchmark, West Texas Intermediate, averages $80 per barrel.

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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 may be an oil dividend stock worth digging into.

3. ExxonMobil

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ExxonMobil operates conventional oil and gas assets in nearly 20 countries, reporting 2025 net production of 4.7 million oil-equivalent barrels daily, with projections to reach 5.5 million by 2030.

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NYSE: XOM

ExxonMobil

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Moneyball Superscore

70/100

Today's Change

(0.66%) $1.07

Current Price

$163.82

Key Data Points

Market Cap

$674B

Day's Range

$160.81 - $164.07

52wk Range

$110.39 - $176.41

Volume

11.7M

Avg Vol

14.3M

Gross Margin

20.88%

Dividend Yield

2.51%

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Beyond conventional assets, the company operates unconventional, deepwater, heavy oil, and liquefied natural gas assets—a business that expanded significantly after its May 2024 acquisition of Pioneer Natural Resources. Management expects Permian production to grow from 1.2 million barrels of oil equivalent per day in 2024 to 2.5 million barrels of oil equivalent per day by 2030. Synergy expectations have doubled to $4 billion annually—twice the original estimate.

ExxonMobil has raised its dividend for 43 consecutive years. In 2025, the company paid $17.2 billion in dividends and repurchased more than $20 billion in stock. The company has also strengthened its balance sheet, ending the second quarter of 2026 with a debt-to-capital ratio of 11% -- down from 29.2% at the end of 2020 -- positioning it well to continue rewarding shareholders. Further demonstrating its circumspect approach to leverage, ExxonMobil ended the second quarter of 2026 with a net debt-to-EBITDA ratio of 0.3.

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4. Kinder Morgan

As the largest energy infrastructure company in the S&P 500, Kinder Morgan is one of the more recognizable names among midstream companies. The self-proclaimed "largest independent transporter of petroleum products in North America" estimates it transports 2.4 million barrels of gasoline, jet fuel, diesel, natural gas liquids, and condensate daily through an expansive 9,500-mile network spanning North America.

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NYSE: KMI

Kinder Morgan

Premium Feature

Moneyball Superscore

75/100

Today's Change

(1.26%) $0.38

Current Price

$30.53

Key Data Points

Market Cap

$68B

Day's Range

$29.43 - $30.66

52wk Range

$25.60 - $34.80

Volume

11.1M

Avg Vol

10.9M

Gross Margin

36.32%

Dividend Yield

3.87%

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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 $10 billion at the end of 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 dividend's security in perspective, consider that Kinder Morgan (which hiked its dividend for the ninth consecutive year in 2026) has reported an average free cash flow of more than $1.04 billion annually over the past five years after paying dividends.

5. Phillips 66

Although Phillips 66 isn't involved in exploration and production, the company has a notable presence across other aspects of the oil industry. The company's midstream business comprises 72,000 miles of pipeline 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

Premium Feature

Moneyball Superscore

69/100

Today's Change

(3.49%) $8.92

Current Price

$264.23

Key Data Points

Market Cap

$105B

Day's Range

$252.53 - $264.43

52wk Range

$126.74 - $277.12

Volume

2.5M

Avg Vol

2.9M

Gross Margin

7.92%

Dividend Yield

1.90%

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Phillips 66 refines crude oil and 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, as well as 1,300 company- and dealer-owned outlets in Europe.

Phillips 66 was spun off from ConocoPhillips (COP +1.53%) as a publicly traded company in 2012. Since it started paying dividends in the fourth quarter of that year, the company has raised its payout at a 15% CAGR through 2025.

Management seems likely to continue returning capital to shareholders through dividends and share buybacks. In an investor presentation from August 2026, the company affirmed its plan to return more than 50% of net operating cash flow to shareholders through share repurchases and dividends.

How to invest in oil dividend stocks

Once investors decide to 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 handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
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.

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Benefits and risks of investing in oil dividend stocks

Before making any investment, investors need to recognize both the advantages and risks. 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 sector is cyclical, and during periods of rising oil prices, energy companies may boost payouts.

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 lead them to favor growth projects over dividends.
Energy companies may face oil spills or other environmental disasters that lead to litigation or other financial penalties, prompting them to slash dividends.

Methodology: How these stocks were chosen

Just because an oil stock pays dividends doesn't make it a worthy investment option. The above-mentioned names, however, outshine many of their peers. For one, the companies have demonstrated a strong commitment to paying dividends over time, suggesting that rewarding shareholders is ingrained in their cultures.

It's not enough to pay dividends. Companies must demonstrate that they have a strong financial footing to balance dividend payments with attention to maintain their financial health, from allocating capital for growth projects to maintaining a strong balance sheet -- something that all the companies have shown.

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, cash generation, and performance history.

A company may sport a high dividend yield, but if it's not in good financial health, that alluring dividend may not last 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.

5 Best Oil Dividend Stocks for 2026 and How to Invest

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

Key Points

1. Chevron

Key Data Points

2. EOG Resources

Key Data Points

3. ExxonMobil

Key Data Points

4. Kinder Morgan

Key Data Points

5. Phillips 66

Key Data Points

How to invest in oil dividend stocks

Benefits and risks of investing in oil dividend stocks

Methodology: How these stocks were chosen

The bottom line

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Oil dividend stocks FAQ

About the Author

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Oil dividend stocks FAQ

Which oil company pays the highest dividend?

How often does ExxonMobil pay dividends?

Are oil dividend stocks a good investment?

How are dividends from oil stocks taxed?

What factors affect oil company dividends?

How do dividends from oil stocks compare to other sectors?

How can I diversify my oil dividend stock investments?

Can dividend payments be cut or suspended?

Top dividend oil stocks to consider

1. Chevron

2. EOG Resources

3. ExxonMobil

4. Kinder Morgan

5. Phillips 66

Benefits and risks of investing in oil dividend stocks

Methodology: How these stocks were chosen

The bottom line

Related investing topics

Key Data Points

How to invest in oil dividend stocks

Key Data Points

Key Data Points

Key Data Points

Key Data Points