12 Best Oil and Gas Dividend Stocks According to Billionaires

9. Cenovus Energy Inc. (NYSE:CVE)

Number of Billionaire Holders: 13

Dividend Yield as of March 28: 3.56%

Cenovus Energy Inc. (NYSE:CVE) is an integrated oil and natural gas company, based in Calgary, Alberta, with operations that span Canada, the United States, and the Asia Pacific region. It is among the best dividend stocks on our list.

Cenovus Energy Inc. (NYSE:CVE) narrowly missed estimates for its Q4 2024 profit, as its EPS of $0.19 was slightly below expectations of $0.2. However, the company’s upstream production rose 1% YoY to 808,600 boed in the fourth quarter, while downstream throughput increased to 579,100 barrels per day from 473,500 bpd a year earlier. Still, CVE’s revenue of $9 billion during the quarter was down 7.29% YoY and below market expectations by $1.11 billion, primarily due to lower commodity prices. Notably, the company generated around $5.6 billion of adjusted funds flow in 2024 and returned about $2.24 billion to shareholders through dividends, share repurchases, and the redemption of preferred shares. The company announced a quarterly dividend of $0.13 per share in February.

Cenovus Energy Inc. (NYSE:CVE) announced in February that it is planning to redeem all of its 8 million outstanding 4.591% Series 5 Preferred Shares on March 31, 2025, at $25 per share. The total aggregate amount of $200 million will be funded primarily from cash on hand.

L1 Capital stated the following about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2024 investor letter:

“Cenovus Energy Inc. (NYSE:CVE) (Long -15%) and MEG Energy (Long -13%) shares fell as the WTI oil price decreased 17% to ~US$69/bbl on the back of increased concerns around a potential increase in OPEC supply along with slower global economic growth. Despite OPEC delaying a previously planned increase in oil output, the oil price continued to weaken due to the weaker demand outlook. During the quarter, we attended the Peters & Co oil and gas conference in Toronto, meeting one-on-one with management from Cenovus and MEG Energy, along with the entire peer group. We continue to favor Cenovus and MEG in the sector due to their strong cash flow generation, the long-life nature of their oil sands assets, low cost of production and strong balance sheets. Both Cenovus and MEG have now transitioned to returning 100% of free cash flow back to shareholders, having reached their respective net debt targets. As a result, we see both names offering sector leading shareholder returns, combined with some modest, accretive output growth.”