In this article we discuss the 5 energy dividend stocks to invest in. If you want to read our detailed analysis of the energy industry, go directly to Top 10 Energy Dividend Stocks To Invest In.
5. Enterprise Products Partners L.P. (NYSE: EPD)
No. of Hedge Fund Holders: 30
Dividend Yield: 7.90%
Texas-based Enterprise Products Partners L.P. is one of the biggest oil companies in the U.S. in terms of revenue. The company has a dividend yield of 8%, with over 21 consecutive years of dividend growth. Billionaire David Tepper’s Appaloosa Management initiated a new position in the company, as of the 13F filings disclosed for the fourth quarter of 2020.The fund owns over 3 million shares of the company, worth more than $67.6 million.
There are 30 funds that hold an EPD position as of the end of the fourth quarter. The company’s most significant stakeholder is Appaloosa Management LP, with 3.5 million shares worth $67.6 million.
4. Valero Energy Corporation (NYSE: VLO)
No. of Hedge Fund Holders: 38
Dividend Yield: 5.21%
Valero is a Texas-based Fortune 500 company. Citi recently added the stock to its 2021 top picks, with a price target of $95. The firm said that VLO is one of the best companies with exposure to the refinery market which will get a boost after the harsh winters in Texas. J.P. Morgan also recently boosted its price target for the stock to $87 from $71.
As of the end of the fourth quarter, 38 hedge funds in Insider Monkey’s database of 887 funds held stakes in Valero Energy Corporation. Holocene Advisors is the company’s biggest stakeholder, with 2 million shares worth $117.4 million.
3. Marathon Petroleum Corporation (NYSE: MPC)
No. of Hedge Fund Holders: 43
Dividend Yield: 4.16%
Marathon Petroleum ranks 3rd on the list of top 10 energy dividend stocks to buy now. The Ohio-based company acquired Andeavor (now Tesoro) in 2018 to become the latest petroleum refinery operator in the country. J.P. Morgan recently upgraded the stock, citing a bullish outlook for U.S. oil refinery industry. The firm especially likes the company’s sale of its Speedway business to 7-Eleven, Inc. for $21 billion.
As of the end of the fourth quarter, there were 43 hedge funds in Insider Monkey’s database that held stakes in MPC, compared to 56 funds in the third quarter. Seth Klarman’s Baupost Group is the company’s biggest stakeholder, with 7.7 million shares worth $318.1 million.
2. Chevron Corporation (NYSE: CVX)
No. of Hedge Fund Holders: 50
Dividend Yield: 4.84%
Chevron is one of the best energy dividend stocks to invest in. The company has increased its dividend for 33 consecutive years. The company recently said it plans to launch a $300 million Future Energy Fund to increase its decarbonization efforts. The stock is up 12% over the last 12 months.
With a $4.1 billion stake in Chevron, Warren Buffet’s Berkshire Hathaway owns 48.5 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 50 hedge funds held stakes in CVX at the end of the fourth quarter, versus 43 funds at the end of the third quarter.
1. Exxon Mobil Corporation (NYSE: XOM)
No. of Hedge Fund Holders: 63
Dividend Yield: 5.86%
Oil giant ExxonMobil is one of the top 10 energy dividend stocks to invest in. The company’s dividend has increased at an average annual rate of 6.1% over the last 38 years. During its 2021 Investor Day, the company outlined its plan to cut production growth to focus more on dividends and cash flows. The company will keep its production flat through 2025. However, the company will increase its operations in Guyana and the Permian Basin.
As of the end of the fourth quarter, 63 hedge funds in Insider Monkey’s database of 887 funds held stakes in Exxon Mobil, compared to 52 funds in the third quarter. First Eagle Investment Management is the company’s most significant stakeholder, with 26.8 million shares worth $1.1 billion.
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