Top Oil Stocks for an Energy Dependent World

Royal Dutch Shell plc, commonly known as Shell, is an Anglo-Dutch multinational oil and gas exploration, refining and marketing corporation headquartered in the Hague, Netherlands. As one of the supermajors, it was the fifth-largest company in the world in 2020. One of the largest oil firms in the world, ExxonMobil is also an American icon, with its corporate heritage tied to John D. Rockefeller’s Standard Oil.

However, it’s important that you focus less on a company’s dividend yield (which can move up or down with the share price), but also on how the yield compares to the company’s free cash flow (FCF). In general investors want to find companies that can pay their entire dividend obligation out of its FCF. This page provides a list of the profiles of publicly traded oil stocks. Best oil stock Oil stocks are publicly traded companies involved in drilling, oil production. You can use Barchart’s Top Oil Stocks list to find investment opportunities and compare stocks involved in this volatile industry. EOG Resources (EOG) is another oil and gas exploration and production company that analysts say is primed to pump gushers of free cash flow back to its shareholders.

Best Oil Stocks That Pay Dividends

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Suncor Energy is a Canadian integrated oil company that produces crude oil by refining oil sands. The company is smaller than the other oil majors on this list, which also means its share price is more volatile than our other picks. The five largest publicly traded oil companies combined to print nearly $200 billion of profits in 2022, and their stock prices surged accordingly. But choosing the best oil stock investments is more challenging now, with the boom firmly in the rearview mirror. Companies that look and drill for oil are among the most volatile stocks in the oil space, Jones says, and their prices are very responsive to short-term trends.

Features to Look for in Crude Oil Stocks

Add in the dividend yield, and the implied total return tops 25%. With an average price target of $130.42, Wall Street gives COP implied price upside of about 22% in the next 12 months or so. Add in the dividend yield, and the implied total return comes to about 25%. PSX’s trailing dividend yield over the past five years is lower than most other companies on this list.

• Still, because of the higher-risk profile, upstream companies may offer greater rewards.
• Meanwhile, the Street’s average price target of $172.97 gives FANG implied price upside of about 23% in the next 12 months or so.
• The global crude oil market has been on a rollercoaster ride over the last year.
• ExxonMobil has focused its recent efforts on reducing its business costs and boosting efficiency.
• In July, Suncor Energy fired then-CEO Mark Little, who was replaced on an interim basis by the Executive Vice President for Downstream Operations Kris Smith.

And because oil and gas companies are taking an increased interest in renewable energy many of the most profitable oil stocks today will continue to be good investments in the future. Understanding how oil supply and demand impacts oil makes it a reliable indicator of economic activity. When analysts and institutional investors forecast decreasing demand for oil, they bid down the price of crude oil. This in turn affects oil stocks which as we said tend to move with the market.

Phillips 66 Company (PSX)

Every investor should have some exposure to oil for the simple reason that it powers the world. The global economy uses oil in many different ways including the gasoline that powers our cars, diesel fuel that’s essential in the trucking industry, jet fuel required for air travel. Oil is also necessary to heat and cool our homes as well as to power factories.

If political forces mentioned above coalesce to boost oil stocks, you might also want to put Devon Energy on your radar. An independent oil and gas exploration and production firm, Devon is one of the domestic workforces in our energy infrastructure. Its operations focus on U.S. onshore projects, which means the resources extracted and the jobs created benefit your fellow Americans.