12 Best Oil and Gas Dividend Stocks According to Billionaires

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Billionaire Holders: 16

Dividend Yield as of March 28: 3.36%

Topping our list of the Best Oil and Gas Dividend Stocks to Buy is Exxon Mobil Corporation (NYSE:XOM), one of the largest integrated fuels, lubricants, and chemical companies in the world.

Exxon Mobil Corporation (NYSE:XOM) delivered an industry-leading financial performance last year, with $34 billion in earnings and $55 billion in cash flow from operations, its third-highest result in a decade despite softer market conditions. The company achieved record production in Permian and Guyana and record sales volumes of high-value products in FY 2024. Moreover, its Q4 adjusted EPS of $1.67 also topped expectations by $0.12.  Exxon has grown its earnings at an annual rate of roughly 30% over the last five years, while its cash flow has risen at a CAGR of about 15%. The oil and gas giant estimates it can add a further $20 billion in earnings and $30 billion in cash flow by the end of the decade.

Exxon Mobil Corporation (NYSE:XOM) has been paying regular dividends to shareholders for 143 years, firmly locking its place among the 15 Dividend Zombies to Invest in. The oil major has distributed over $125 billion in dividends and buybacks only in the last five years and also recently announced plans to repurchase $20 billion in shares annually through 2026.

Overall, Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of the best oil and gas dividend stocks according to billionaires. While we acknowledge the potential for XOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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