13 Best Natural Gas and Oil Dividend Stocks To Buy

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 86

Dividend Yield: 3.65%

Topping our list of the Best O&G Dividend Stocks is Exxon Mobil Corporation (NYSE:XOM), a company that manages an industry-leading portfolio of resources and is one of the largest integrated fuels, lubricants, and chemical companies in the world. The oil giant operates facilities or markets products all over the world and explores oil and natural gas on six continents, gaining a significant competitive edge due to its diversified world-class asset portfolio.

Exxon Mobil Corporation (NYSE:XOM) delivered an industry-leading financial performance in 2024, reporting over $33 billion in earnings and $55 billion in cash flow from operations. More importantly, the oil giant delivered such strong results without a big boost from commodity prices and while facing headwinds from lower refining industry margins and a decline in natural gas prices from 2023’s historically high levels. Exxon’s total production, including from the Permian basin and lucrative projects in Guyana, reached 4.6 million barrels of oil equivalent per day in Q4 of 2024, growing from 4.58 million in the previous quarter.

Over the last five years, Exxon Mobil Corporation (NYSE:XOM) has grown cash flow from operations at a roughly 15% CAGR, more than double the closest competitor. Moreover, the oil major has distributed over $125 billion in dividends and buybacks during the period, $30 billion more than its closest competitor. Exxon has increased its annual dividend for 42 consecutive years and announced a quarterly dividend of $0.99 per share for Q1 of 2025. The company also has plans to repurchase $20 billion in shares annually through 2026.

Overall, Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of the best natural gas and oil dividend stocks to buy. 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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