Which oil company pays the highest dividend?

Icahn Enterprises (NASDAQ:IEP) is a conglomerate that has significant energy operations. As of mid-March 2026, its trailing dividend yield was 26.5%.

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 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 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 offer higher dividend yields than those of other sectors. While yields may be higher, oil stocks' dividends can fluctuate when 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, 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. In 2024, for example, Comstock Resources (NYSE:CRK) suspended its dividend due to low natural gas prices.

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 Mar 15, 2026 at 8:01 PM EST | Fact-checked by Frank Bass

Key Points

Global oil demand is projected to grow, ensuring continued relevance of oil stocks.
Chevron and ExxonMobil offer robust dividends, making them attractive for steady income.
Invest in oil stocks with sound financial health to secure long-term passive revenue.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Chevron (NYSE:CVX)	$380.6 billion	3.62%	Oil, Gas and Consumable Fuels
EOG Resources (NYSE:EOG)	$74.7 billion	2.88%	Oil, Gas and Consumable Fuels
ExxonMobil (NYSE:XOM)	$654.6 billion	3.21%	Oil, Gas and Consumable Fuels
Kinder Morgan (NYSE:KMI)	$74.8 billion	3.49%	Oil, Gas and Consumable Fuels
Phillips 66 (NYSE:PSX)	$70.6 billion	2.76%	Oil, Gas and Consumable Fuels

Data as of May 18, 2026. Showing 5 of 5 tickers.

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NYSE: CVX

Chevron

Today's Change

(2.39%) $4.46

Current Price

$191.10

Key Data Points

Market Cap

$381B

Day's Range

$187.90 - $191.50

52wk Range

$133.77 - $214.71

Volume

33K

Avg Vol

12M

Gross Margin

15.15%

Dividend Yield

3.62%

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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 7.2% adjusted return on capital employed (ROCE) in 2025, management is targeting a 3% (or more) ROCE improvement by 2030 if the price of Brent crude averages $70 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 39 consecutive years, Chevron has increased its dividend, and its dividend growth may continue in the near future. Management has said it expects to increase its distribution to shareholders over the next five years if 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

(3.14%) $4.27

Current Price

$140.26

Key Data Points

Market Cap

$75B

Day's Range

$137.61 - $140.38

52wk Range

$101.59 - $151.87

Volume

10K

Avg Vol

4.9M

Gross Margin

40.88%

Dividend Yield

2.88%

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Presumably, its many untapped resources will continue to be a source of production. As of the end of 2025, the company reported it had total estimated net proved reserves of 5.5 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. Many E&P companies weigh down their balance sheets with large debt loads to finance their operations, yet EOG Resources adopted a conservative approach to leverage, ending 2025 with a net debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio of 0.4.

To ensure its financial health, the company has targeted a total debt-to-ratio below 1.0 in the event of a downturn in energy prices, with the oil benchmark West Texas Intermediate dropping to $45 per barrel.

Proving adept at managing its capital, EOG has also demonstrated a commitment to returning cash to shareholders. The company paid $3.95 per share in dividends for 2025, representing a 14.5% CAGR since 2000. Plus, it generated $4.7 billion of free cash flow in 2025, all of which it returned to shareholders through dividends and share repurchases.

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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 2025 net production of 4.7 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

(4.07%) $6.17

Current Price

$157.92

Key Data Points

Market Cap

$655B

Day's Range

$153.00 - $158.00

52wk Range

$101.19 - $176.41

Volume

53K

Avg Vol

21M

Gross Margin

20.92%

Dividend Yield

3.21%

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NYSE: KMI

Kinder Morgan

Today's Change

(0.69%) $0.23

Current Price

$33.63

Key Data Points

Market Cap

$75B

Day's Range

$33.28 - $33.82

52wk Range

$25.60 - $34.73

Volume

7.1K

Avg Vol

13M

Gross Margin

35.41%

Dividend Yield

3.49%

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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 has reported an average of more than $1.04 billion in free cash flow after dividends were paid annually over the past five years.

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 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

(2.73%) $4.66

Current Price

$174.93

Key Data Points

Market Cap

$71B

Day's Range

$171.87 - $175.27

52wk Range

$109.75 - $190.61

Volume

322

Avg Vol

3.2M

Gross Margin

7.04%

Dividend Yield

2.76%

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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 +2.89%) into its own publicly traded company in 2012. Since it started paying dividends in the fourth quarter of that year through 2025, the company has raised its payout at a 15% CAGR.

Management seems likely to continue returning capital to shareholders through dividends in addition to share buybacks. ⠀ an investor presentation from March 2026, the company affirmed is plan to return over 50% of net operating cash flow to shareholders through share repurchases and dividends.

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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, 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.

While identifying a desire to invest in oil stocks that pay dividends is a good first step, it's important that potential investors ensure the advantages and risks 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 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.

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 payouts and then reducing them.

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

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Oil dividend stocks FAQ

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Stocks Mentioned

Premium Investing Services

Key Data Points

Best Solar Energy Stocks for 2026 and How to Invest

Best Oil ETFs for 2026 and How to Invest

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

The Largest Energy Companies by Market Cap in May 2026

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

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

Strategies for investing in oil dividend stocks

Future outlook for oil dividend stocks

The bottom line

Related investing topics

FAQ

Key Data Points

Key Data Points

Key Data Points

Key Data Points