Oil Stocks: Dividends & Avoiding a Meltdown

Let’s be real. We’re still driving cars, heating homes, and generally needing stuff made from oil and gas. It’s not exactly a sunrise industry, but it is an industry. And like any good reality show contestant, it has its volatile moments. Commodity prices do a little dance based on whatever geopolitical drama is trending, which, let’s face it, is a lot these days. So, if you’re thinking of dipping your toe into the oil and gas pool, you need companies that can weather the storm – and still send you a check.

We’re looking for the Meryl Streeps of oil and gas – consistently strong performers who can pay dividends even when everyone else is panicking. Diversification is key. Think of it like a good portfolio of snacks – you don’t want all potato chips, right? You need some pretzels, maybe some chocolate… something to balance things out. These companies have figured that out, and they’re rewarding shareholders for it.

Here are three oil and gas dividend stocks that, frankly, seem likely to keep sending those checks for the next five years, and probably beyond. Don’t expect fireworks, but a solid, reliable income stream? That’s what we’re after. It’s the financial equivalent of a comfortable cardigan.

1. Chevron

Let’s start with the big dog, Chevron (CVX +0.04%). They’re an “integrated oil major,” which is corporate speak for “they do everything.” Upstream, downstream… they’re basically the Amazon of oil and gas. And they’ve been raising their dividend for 37 consecutive years. Thirty-seven! That’s longer than some marriages. Their current yield is around 4%, which is a perfectly respectable number. It won’t make you a yacht owner, but it’ll cover the streaming services.

They recently acquired Hess, which gives them access to some promising oil fields off Guyana. Management is predicting 10% annual growth in free cash flow, which, translated from finance-speak, means they should have enough money to keep those dividend increases coming. It’s not glamorous, but it’s…stable. And in this economy, stable feels pretty good.

2. Enterprise Products Partners

Next up, Enterprise Products Partners (EPD 0.45%). These are the guys who move the oil and gas around – the pipeline people. They’re like the UPS of energy. They charge by volume, so they’re less affected by price swings. They have over 50,000 miles of pipelines. That’s…a lot of pipeline. You could walk that, I guess, but you’d need good shoes.

They’ve been raising their dividend for 28 years, which is… impressive. They’re a “master limited partnership,” which means the tax situation is… complicated. Let’s just say you’ll need an accountant. But they also pay a whopping 6.6% dividend. That’s enough to make even your accountant smile. As long as oil and gas keep flowing, EPD seems pretty well-positioned to keep the income coming.

3. Enbridge

Finally, we have Enbridge (ENB +1.50%). These Canadians are the most diversified of the bunch. They move resources, they have a utility business, they’re even dabbling in renewable energy. It’s like they’re trying to be everything to everyone. Most of their business is regulated, which means steady, predictable revenue. It’s the beige of the energy sector, but sometimes, beige is good.

They’ve raised their dividend for 28 years, and the yield is currently around 5.7%. Management is expecting mid-single-digit growth, which is… reasonable. As long as people need energy, Enbridge seems like a pretty safe bet. It’s not going to make you rich, but it might just help you sleep at night. And in today’s world, that’s worth something.

2026-01-26 03:42

1. Chevron

2. Enterprise Products Partners

3. Enbridge

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