10 Energy Stocks with Fat Dividends

2. BP p.l.c. (NYSE:BP)

Dividend Yield as of April 18: 6.85%

BP p.l.c. (NYSE:BP) is a British multinational company recognized worldwide for quality gasoline, transport fuels, chemicals, and alternative sources of energy such as wind and biofuels.

BP p.l.c. (NYSE:BP) had a tough Q4 2024 as its EPS of $0.44 fell short of expectations by $0.02, primarily due to weaker refining margins and fluctuating oil markets. The company’s revenue of $45.75 billion also missed estimates by $1.2 billion, besides being down 12.3% YoY. BP’s operating cash flow for FY 2024 came in at $7.43 billion, a 20.8% drop from 2023.

Despite the challenges, BP p.l.c. (NYSE:BP) raised its dividend per ordinary share by 10% and delivered $7 billion of share buybacks in 2024. The embattled energy company announced a $1.75 billion share buyback for Q4, with a dividend per ordinary share of $0.08.

To help improve its profitability, BP p.l.c. (NYSE:BP) has planned to cut investment in renewable energy to refocus on oil and gas. The company announced an oil discovery off the US Gulf coast just last week and expects global production to reach 2.3 million to 2.5 million boe/d by the end of the decade, with potential to grow through 2035.