13 Best Natural Gas and Oil Dividend Stocks To Buy

8. Shell plc (NYSE:SHEL)

Number of Hedge Fund Holders: 48

Dividend Yield: 4.2%

Shell plc (NYSE:SHEL) is a global energy and petrochemical company employing 103,000 people and with operations in more than 70 countries. It is also the number one global lubricant supplier, as well as the top player in liquified natural gas (LNG), a sector that is expected to grow substantially over the coming decade.

Shell plc (NYSE:SHEL) had a tough Q4 2024 as it reported a profit of $3.66 billion, the lowest quarterly profit in the last 3 years. The oil major also posted adjusted earnings of $23.72 billion for the full-year 2024, down from the annual profit of $28.25 billion a year earlier, primarily due to higher exploration write-offs, lower trading margins, and weaker crude prices over the final three months of the year. However, despite the fall in earnings, the company’s share rose as it raised its dividend by 4% and launched another share buyback program of $3.5 billion, which is expected to be completed over the next three months.

Shell plc (NYSE:SHEL) continues to invest in its hydrocarbon portfolio and it was recently reported that the company’s Nigerian subsidiary has announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria. The $5 billion initiative marks a significant step in the development of the African country’s oil and gas industry, with production expected by the end of the decade. Moreover, the company has also started production at Whale in the US Gulf of Mexico, which ‘will make a significant contribution to its commitment to bring projects online, with a total peak production of more than 500,000 barrels of oil equivalent per day from 2023 through 2025’.