2023 has already seen the oil and gas industry bustling with activity, and many energy-focused dividend stocks have gained quite a bit of attention lately. As oil prices have skyrocketed and the US shale oil production has continued to increase, the outlook of this sector looks increasingly bullish. Consequently, some of the best US oil and gas dividend stocks will be in demand for investors who seek reliable income and steady growth.
The top five US oil and gas dividend stocks for 2023 are:
ExxonMobil (XOM) – Despite seeing its share price plunge in 2020 due to the pandemic and oil price volatility, ExxonMobil’s cash flow remained strong. It also has a solid history of dividend payouts and, because of its integrated nature, it is well-positioned to capitalize on any improvement in the energy market.
Chevron Corporation (CVX) – This oil major offers a large yield and a streak of rising dividends. Given its integrated oil and gas operations, Chevron is well-positioned to capitalize on the rising demand for energy.
ConocoPhillips (COP) – This integrated energy company is one of the largest independent producers of oil and natural gas in the US. Its extensive acreage tracts and production facilities offer it the advantage of being able to capture rising profits from a growing energy market.
Anadarko Petroleum (APC) – A major player in the US shale oil and gas industry, Anadarko has been aggressively expanding its exposure to North America’s energy production. It is well-positioned to benefit from rising oil prices and expansions in drilling activities.
EOG Resources (EOG) – Being one of the largest independent producers of oil and gas in the US, EOG has been determinedly increasing its presence in the Cross-US Mid-Continent shale region. It also offers a generous dividend yield and attractive total returns.
These five US oil and gas dividend stocks will likely offer investors a low-risk way to benefit from the growing energy sector in 2023. Moreover, existing shareholders might also get to take advantage of higher dividend payouts as well. Since many of these companies have the option to expand operations, expanding their presence in the sector, investors can expect handsome returns.