When it comes to investing, the oil and gas industries offer some of the highest dividend payouts. Companies involved in the production and distribution of oil and gas typically generate high revenues, resulting in generous dividends. In 2021, the top five highest paying oil and gas dividend stocks are ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), Marathon Oil Corporation (MRO), and Hess Corporation (HES).
ExxonMobil is the world’s largest publicly-traded integrated oil and gas company, and is well-known as a dividend stalwart. With an impressive 4.45% dividend yield and a history of 44 consecutive years of dividend increases, ExxonMobil is certainly a great choice for income-seeking investors. Being the world’s largest publicly traded oil and gas firm, ExxonMobil is no stranger to controversies but investors are willing to overlook that in exchange for the safe dividend.
Chevron is the second largest publicly-traded energy company in the US and also one of the oldest dividend-paying firms. Founded in 1879, Chevron boasts a generations-long track record of dividend payments, paying dividends for over 128 consecutive years. Apart from its long history of stable dividend payments, Chevron rewards investors with a dividend yield of 4.44%. Chevron is also well-positioned for growth in the current low-oil price environment due to its strategic cost-cutting efforts.
Royal Dutch Shell is another major oil and gas dividend stock. Headquartered in The Netherlands, Shell is the one of the largest and oldest energy companies in the world. Being one of the few companies with a AAA credit rating, Shell is among the most trusted names in the oil and gas industry. With an impressive 4.20% dividend yield and an equally impressive 102-year continuous dividend payment history, Shell is a great choice for long-term dividend investors.
Marathon Oil Corporation is an independent exploration and production company based in Houston. While the company’s dividend yield is 4.21%, it has a less impressive dividend history compared to some of its peers. Despite its relatively short dividend track record, Marathon offers investors an attractive combination of diversification and a high payout ratio.
Finally, Hess Corporation rounds off this list of top oil and gas dividend stocks. With a dividend yield of 4.00%, Hess has beenpaying dividends since 1972. It is not surprising that Hess is highly valued by investors, as the company’s strategy of prudent capital allocation has resulted in strong returns.
Overall, these five oil and gas dividend stocks offer investors an attractive combination of income and growth. With their impressive dividend yields and long history of steady dividend payments, these companies are sure to remain popular investments in the coming years.