13 Best Natural Gas and Oil Dividend Stocks To Buy

2. Cheniere Energy, Inc. (NYSE:LNG)

Number of Hedge Fund Holders: 69

Cheniere Energy, Inc. (NYSE:LNG) is an American liquified natural gas company. It reported mixed results in the first quarter of 2024, with its revenue falling by over 42% on a year-over-year basis at $4.2 billion. Its distributable cash flow (DCF) came in at approximately $1.2 billion. The company sells the majority of its LNG through long-term contracts with fixed rates. This business model allows the company to generate steady and predictable cash flow. It expects to generate DCF within the range of $2.9 billion to $3.4 billion in FY24. The company intends to utilize this cash flow for various purposes, including dividend payments, share buybacks, and debt reduction.

Cheniere Energy, Inc. (NYSE:LNG)’s debt-to-equity ratio of 3.42 is higher, however, the company provided guidance that over $10 billion would be utilized for debt reduction and share buybacks through 2026. The company’s CEO expects to surpass this target with ease. Street analysts have maintained a consensus Strong Buy rating on the stock with an average price target of $202.3, which reflects a 28% upside potential.

Cheniere Energy, Inc. (NYSE:LNG) started paying dividends in 2021 and has raised its payouts every year since then, which makes LNG one of the best dividend stocks on our list. The company currently offers a quarterly dividend of $0.435 per share for a dividend yield of 1.10%, as of June 10.

Cheniere Energy, Inc. (NYSE:LNG) was included in 69 hedge fund portfolios at the end of Q1 2024, up from 64 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $2.6 billion.