5 Best Natural Gas Dividend Stocks To Buy

In this article, we discuss 5 best natural gas dividend stocks to buy. If you want to see more stocks in this selection, check out 10 Best Natural Gas Dividend Stocks To Buy. 

5. Halliburton Company (NYSE:HAL)

Number of Hedge Fund Holders: 43

Dividend Yield as of October 28: 1.34%

Halliburton Company (NYSE:HAL) is a Texas-based provider of oil and gas equipment and services to the energy industry worldwide. On October 25, Halliburton Company (NYSE:HAL) posted its Q3 results, announcing non-GAAP earnings per share of $0.60 and a revenue of $5.36 billion, outperforming market estimates by $0.04 and $20 million, respectively. Revenue over the period climbed 38.9% year-over-year in the third quarter of 2022. It is also one of the best dividend stocks to buy. 

Susquehanna analyst Charles Minervino on October 26 raised the price target on Halliburton Company (NYSE:HAL) to $51 from $48 and kept a Positive rating on the shares. The analyst said they posted robust Q3 results with revenues, operating income, EPS, and free cash flow all exceeding his expectations. This is a sign that Halliburton Company (NYSE:HAL) is executing very well as the oilfield services upcycle creates momentum, as per the analyst. 

According to Insider Monkey’s data, 43 hedge funds were long Halliburton Company (NYSE:HAL) at the end of Q2 2022, compared to 47 funds in the preceding quarter. Richard S. Pzena’s Pzena Investment Management is the biggest stakeholder of the company, with 16.7 million shares worth $523 million. 

4. Pioneer Natural Resources Company (NYSE:PXD)

Number of Hedge Fund Holders: 56

Dividend Yield as of October 28: 9.89%

Pioneer Natural Resources Company (NYSE:PXD) is headquartered in Irving, Texas, operating as an independent oil and gas exploration and production company in the United States. On October 27, Pioneer Natural Resources Company (NYSE:PXD) declared a $5.71 per share quarterly dividend. The dividend is distributable on December 15, to shareholders of the company as of November 30. Pioneer Natural Resources Company (NYSE:PXD)’s dividend yield on October 28 came in at 9.89%. 

On October 18, Piper Sandler analyst Mark Lear raised the price target on Pioneer Natural Resources Company (NYSE:PXD) to $346 from $311 and kept an Overweight rating on the shares. After a tumultuous September, exploration and production firms are “back on solid footing heading” into the Q3 results with the “OPEC+ supply cuts mostly to thank,” the analyst told investors in a research note.

Among the hedge funds tracked by Insider Monkey, 56 funds reported owning stakes in Pioneer Natural Resources Company (NYSE:PXD) at the end of Q2 2022, compared to 54 funds in the prior quarter. Gavin M. Abrams’ Abrams Bison Investments is one of the leading position holders in the company, with 598,000 shares worth $133.40 million. 

Here is what Carillon Scout Mid Cap Fund has to say about Pioneer Natural Resources Company (NYSE:PXD) in its Q1 2022 investor letter:

“Pioneer Natural Resources (NYSE:PXD) performed well in a strong energy sector. Pioneer stood out recently with a pledge to return a large majority of free cash flow to shareowners through dividends and stock buybacks, and ended hedging to give shareowners more earnings and dividend potential should oil and gas prices continue to rise.”

3. Schlumberger Limited (NYSE:SLB)

Number of Hedge Fund Holders: 64

Dividend Yield as of October 28: 1.39%

Schlumberger Limited (NYSE:SLB) is a Texas-based company that provides software, information management, and IT infrastructure services to the oil and gas sector. On October 21, Schlumberger Limited (NYSE:SLB) declared a quarterly dividend of $0.175 per share, in line with previous. The dividend is payable on January 12, 2023, to shareholders of record on December 7. Schlumberger Limited (NYSE:SLB) posted Q3 adjusted earnings and revenues that exceeded expectations, as soaring oil and gas prices resulted in more drilling activity.

On October 26, Barclays analyst J. David Anderson raised the price target on Schlumberger Limited (NYSE:SLB) to $62 from $61 and maintained an Overweight rating on the shares following the “strong” Q3 results. 

According to Insider Monkey’s data, 64 hedge funds were bullish on Schlumberger Limited (NYSE:SLB) at the end of June 2022, compared to 58 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with more than 27 million shares worth $968.3 million. 

Here is what ClearBridge Investments specifically said about Schlumberger Limited (NYSE:SLB) in its Q2 2022 letter:

“We further added to our positioning for the accelerating energy transition with the purchase of Schlumberger Limited (NYSE:SLB), a global provider of oilfield services. As a technology leader, Schlumberger should generate strong free cash flow over the next few years as the industry recovers, using its excess cash to gain market share from smaller players and to expand into new areas of growth. Through its scale, presence, partnerships and technology, Schlumberger is targeting expansion into new large addressable markets such as carbon capture, hydrogen, geothermal and lithium extraction.”

2. Chesapeake Energy Corporation (NASDAQ:CHK)

Number of Hedge Fund Holders: 67

Dividend Yield as of October 28: 2.25%

Chesapeake Energy Corporation (NASDAQ:CHK) is one of the best natural gas dividend stocks to invest in. The Oklahoma-based company engages in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids from underground reservoirs in the United States. 

Jefferies analyst Lloyd Byrne initiated coverage of Chesapeake Energy Corporation (NASDAQ:CHK) on October 19 with a Buy rating and a $150 price target. He believes the “Option Value” of energy is up again, driven by a restricted capital cycle. 

According to the second quarter database of Insider Monkey, 67 hedge funds were long Chesapeake Energy Corporation (NASDAQ:CHK), compared to 59 funds in the prior quarter. Howard Marks’ Oaktree Capital Management is the largest stakeholder of the company, with 10.5 million shares worth $851.6 million. 

Miller Value Partners made the following comment about Chesapeake Energy Corporation (NASDAQ:CHK) in its Q3 2022 investor letter:

“Chesapeake Energy Corporation (NASDAQ:CHK) gained 19.1% in the period. The company reported 2Q22 Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and Exploration Expense (EBITDAX) of $1,269MM, +195.8% Y/Y, ahead of consensus of $1,226MM, and Adjusted Earnings per Share (EPS) of $4.87, compared to 2Q21 EPS of $1.64, ahead of analyst expectations for EPS of $3.82. Chesapeake generated adjusted free cash flow (FCF) of $494MM, bringing TTM FCF to $1,663MM, or a FCF yield of 14.4%. Management also raised the company’s base dividend by 10% to $2.20/share, bringing the total quarterly dividend to $2.32/share, or an annualized yield of ~9.7%. Additionally, the company doubled its existing share repurchase authorization from $1B to $2B and has executed $670MM in repurchases so far through 7/31/22. Collectively, management is guiding for $1.2B in total FY22 dividends, at the midpoint, and $1B in share buybacks, implying total FY22 shareholder returns of $2.2B, or ~19.1% of the company’s market cap.”

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 72

Dividend Yield as of October 28: 3.18%

Exxon Mobil Corporation (NYSE:XOM) is one of the premier energy dividend stocks to invest in. On October 28, Exxon Mobil Corporation (NYSE:XOM) declared a $0.91 per share quarterly dividend, a 3.4% increase from its prior dividend of $0.88. The dividend will be paid to shareholders on December 9. U.S. energy giants Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) reported a combined $31 billion in third quarter profits.

On October 18, Jefferies analyst Lloyd Byrne upgraded Exxon Mobil Corporation (NYSE:XOM) to Buy from Hold with a price target of $133, up from $90. Exxon Mobil Corporation (NYSE:XOM) invested through the cycle, while the rest of the industry limited capital, said the analyst, who believes higher capital paired with increasing commodity prices will allow the company to de-lever and make room for growth in both the Upstream and Downstream segments.

Among the hedge funds tracked by Insider Monkey, 72 funds were bullish on Exxon Mobil Corporation (NYSE:XOM) at the end of the second quarter of 2022, compared to 83 funds in the preceding quarter. Rajiv Jain’s GQG Partners is the biggest stakeholder of the company, with 47.5 million shares worth over $4 billion. 

In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”

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