13 Best Natural Gas and Oil Dividend Stocks To Buy

7. Valero Energy Corporation (NYSE:VLO) 

Number of Hedge Fund Holders: 49

Dividend Yield: 3.37%

Ranking at number 7 in our list of the Best Natural Gas and Oil Dividend Stocks to Invest in is Valero Energy Corporation (NYSE:VLO), the world’s largest independent petroleum refiner and a leading producer of low-carbon transportation fuels. Founded in 1980, Valero has 15 refineries in the US, Canada, and the UK, with a total throughput capacity of approximately 3.2 million barrels per day.

The recent downturn in refining margins and increased operational costs have pressured Valero Energy Corporation (NYSE:VLO) and in its Q4 2024, the company reported a revenue of $30.76 billion, down by over 13% YoY but still beating the analysts’ estimates by over $733 million. Valero’s core refining segment witnessed a significant decline in operating income, reporting $437 million in Q4 2024 versus $1.6 billion the previous year, highlighting ongoing challenges in the sector. However, despite the setbacks, the company increased its quarterly cash dividend by 6% and returned $601 million to its stockholders in the fourth quarter of 2024.

Valero Energy Corporation (NYSE:VLO) continues to focus on enhancing its capabilities in renewable energy, with projects like the Sustainable Aviation Fuel initiative. Since 2009, the company has invested over $5.4 billion in its low-carbon businesses, making it the world’s largest producer of low-carbon transportation fuels. Valero’s renewable diesel business also stood out in Q4 2024 with an operating income of $170 million, up from $84 million a year ago, partly due to amplified sales volumes and better margins.