10 Best High-Dividend Energy Stocks with Impressive Yield in 2024
Updated February 4, 2024
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Best High-Dividend Energy Stocks with Impressive Yield in 2024
- China Petroleum & Chemical – 9% dividend yield
- Clearway Energy – 7.48% dividend yield
- Shell – 3.49% dividend yield
- Diamondback Energy – 4.3% dividend yield
- ConocoPhillips – 3.77% dividend yield
- NextEra Energy – 3.63% dividend yield
- Marathon Oil – 1.51% dividend yield
- ExxonMobil – 3.3% dividend yield
- Cenovus Energy – 2.02% dividend yield
- Cameco – 0.24% dividend yield
Covering both renewable sources like wind and solar power and fossil fuels, the global energy sector encompasses a wide range of companies.
If you're considering investing in energy stocks, getting to know which companies offer the best dividend policies and the possibility of increased dividend yield is the best place to start.
By analyzing the best high-dividend energy stocks in 2024, we have all the info you need right here.
Along with looking at the best energy stocks, we’ll also show you the easiest way to buy energy stock.
Let’s get started!
What are the Best Energy Stocks with Dividends?
Here is a list of the top energy dividend stocks that you should consider investing in:
1. China Petroleum & Chemical
China Petroleum & Chemical offers numerous benefits to investors and is no doubt one of the top energy dividend stocks.
For starters, it's one of the best options for those looking to diversify their portfolio by adding companies from the major global markets. There is also the allure of its performance.
This Chinese gas and large-cap oil giant has increased its stock value by 24% over the past year and has started to implement a lucrative share buyback program.
While the company's net income and annual revenues have dipped in the past five years, it has compensated by reducing operating expenses by 5.9%.
China Petroleum & Chemical offers one of the highest dividend yields on the energy market, 9%, which you can earn by buying its stocks on one of the reputable stock exchanges.
Visit China Petroleum & Chemical
2. Clearway Energy
For the best renewable energy dividend stocks, look no further. This US-based company offers wind and solar-powered solutions and has a gross operating capacity of 9.3 GW.
As a business specializing in renewable energy, Clearway Energy still has room to grow and expand.
Moreover, it was more affected by the global crisis than other rival companies, which resulted in a return of 26% over the past year, below the market average.
In light of this information, the recent comeback of a 15% increase in stock value in just a week, and a lucrative dividend yield of 7.48% are both pleasant and much-welcome surprises, which has given many people confidence they are high dividend renewable energy stocks.
Current financial analysis indicates further increases in stock prices and dividend yields, which you can take advantage of by purchasing them on the major stock markets.
For cheap energy stocks that pay dividends, Clearway Energy is a great choice.
3. Shell
UK-based Shell is one the world’s most renowned gas and oil and gas manufacturers and another of the best energy stocks with dividends.
With an outstanding stock gain of 32%, Shell has successfully risen above the competition over the past year.
Its short-term results are just as impressive, with Shell stock often rising in value by up to 6% in one week.
By buying Shell’s shares at a reputable stock exchange, you're currently looking into a dividend yield of 3.49%. Moreover, both the stock price and the yields show a growing tendency.
4. Diamondback Energy
If you want to invest in shale oil and gas, buying Diamondback Energy stock is a viable option. The Texas-based organization has steadily increased its stock prices, with recent growth reaching over 10% in just one week.
Like many in this sector, Diamondback Energy has also experienced a dip in its revenue over the past year, it has successfully compensated by reducing operation costs (including supply expenses) by 29%. This calculated decision ensured that the company could offer an appealing current dividend yield of 4.3%.
5. ConocoPhillips
As one of the largest gas and oil companies, ConocoPhillips has a global network for exploring, producing and supplying energy resources from the Middle East across Europe to North America.
With current dividend yields of 3.77%, the company offers a solid investment opportunity.
More importantly, due to its outstanding performance despite the global energy crisis, ConocoPhillips stock shows a 6.4% growth rate compared to last year, resulting in an impressive 72.69% increase in revenues.
The company stock has also seen a 63% increase over the last 5 years, which is a great incentive to buy them at a major exchange.
6. NextEra Energy
NextEra Energy specializes in selling clean and affordable energy, which alone is an attractive prospect given the dwindling traditional resources and the need to switch to sustainable solutions.
While the company stock has recently suffered a loss and a market sell-off, this also resulted in a 32% discount compared to last year's prices.
Furthermore, by switching from a high yielding but unsustainable dividend guidance, NextEra Energy now has a running yield of 3.63%.
Due to the 41.7% increase in the recent revenue report, the company stock dividend yields are predicted to rise up to 6% by 2026. You can purchase them at most exchanges.
7. Marathon Oil
Specializing in hydrocarbon exploration, Marathon Oil has several onshore locations in Texas, along with offshore operations in Central Africa and Equatorial Guinea.
Given its fast-increasing stock value, the company is one of the most recommended investment assets in its sector.
While its current running dividend yield of 1.51% is on the lower side, its current financial standing indicates further gains.
Like many of its peers, the company is still recovering from market fluctuations but has set a target of increasing its stock value by 25% in the next year.
This would also have a positive impact on its dividend yield, which you can take advantage of buy purchasing the shares on the major stock exchanges.
8. ExxonMobil
With a market capitalization of over $442 billion, ExxonMobil is a global oil and gas producer with a highly prestigious position in all major exchanges.
Moreover, the company's energy stock has increased by 12% over the prior year, and investors are currently looking at a 3.3% dividend yield.
Like many of its peers, ExxonMobil was also affected by the global crisis, and its most recent revenues show a 27.2% decrease. However, the company compensated by reducing its operating expenses by 1.80% and total liabilities by 14.7%.
ExxonMobil's announcement about the acquisition of Pioneer Natural Resources also had a positive impact on the company's stock values on the market.
9. Cenovus Energy
With numerous refineries across the US and Canada, Cenovus Energy is a notable investment opportunity in the gas and oil sector as one of the best high dividend energy stocks.
In the past year alone, the company has shown a revenue growth of 20%, achieving a prominent market capitalization of $38 billion.
While the company's current dividend yield is a modest 2.02%, those who purchase it through reputable exchanges are gaining consistent and secure returns.
Moreover, based on the company's current financial performance, its stock is expected to rise in value in the coming years.
10. Cameco
Another way to diversify your portfolio is to invest in nuclear power, as this sector has shown an increase in performance along with wind and solar power.
As one of the most prominent uranium producers in the world, Cameco has seen a 233% increase in its stock value over the past five years.
While the current running dividend is only 0.24%, this is expected to grow as the focus shifts more and more toward non-fossil fuel resources.
With a market capitalization of $16 billion and a robust financial sheet balance, this nuclear energy stock shows a growing tendency.
If you're looking for a long-term investment that would also grant higher dividends in the future, you can buy Cameco shares at the most reputable exchanges.
What are Dividend Stocks?
When investing in a company's stocks and shares, the investors become partial owners of the business. However, in most cases, buying stock means that you'll own just a very small percentage of the company.
It's also crucial to mention that buying a company's shares doesn't automatically mean you'll earn dividends from them.
There are two types of stocks on stock exchanges: those that pay dividends and those that don't.
As their name implies, dividend stocks help you earn money (usually in regular intervals) as a share owner.
The payment you receive depends on how many shares you own.
Still, not all companies listed on the stock exchange pay dividends. For example, while Amazon shares are available for purchase, they do not pay dividends.
How do Stock Dividends Work?
The company's management decides the amount and frequency of the company’s dividend payments. They also determine how much of the organization’s capital can be distributed to the shareholders based on the company's current performance and how much should be reinvested in business operations.
Most businesses have a regular dividend payment schedule and can pay on a quarterly, six-monthly, or annual basis.
The size of the dividends can also vary based on a company's past, current and prospective future performance, although there are some exceptions to this.
Some organizations don't pay dividends regardless of how well they perform in any given period.
The individual companies and the investment brokers manage investors' accounts (by adding dividends and payments), so you won't have to worry about taking any actions, except maybe choosing how to receive your payout, either as a cash payout or by investing in additional stock.
Why Invest in the Energy Sector?
The number of reasons why investing in the energy sector can be a great option is vast.
For one, it is one of the largest sectors of the economy, constantly adapting and looking at growth by implementing technological innovations and catering to market demand.
Due to all these reasons, most entities in this sector offer a strong return. Even more importantly, there is a great range of energy stocks that pay monthly dividends.
What to Consider When Buying Stock Dividends to Invest In
There are numerous things that should be considered when trying to find the best energy stocks with dividends.
Here are the key factors:
Your Capital
The amount you can or are willing to invest in stocks and shares is the first factor to consider, as it can narrow your search for suitable companies and assets.
Some companies have a minimum number of assets you must buy, while other stocks are sold at very high prices and aren't suitable for all budgets.
Dividend Frequency
The frequency with which a business pays dividends can indicate its financial state and performance. Irregular payments point to unstable finances and should only be considered if you're willing to risk (or don't mind) infrequent payouts.
However, if you're looking for a regular income stream from stock dividends, choose a company with regular payouts.
Dividend Value
Higher values might indicate good standing and performance, so they are always more desirable.
However, stocks that pay more will also be more expensive to purchase. Here, finding a balance between value and price is crucial, especially if you're working with limited capital.
The Company's Risk Factors
While investing in any stock and shares carries certain risks, some companies have higher risk factors than others. This is particularly true in the energy sector, where the pressure to adapt and stay up to date with demand and innovations is enormous.
Companies that can't do this represent a higher investment risk, as their stocks can plummet due to poor performance.
The Company's Financial Performance
While dividend payouts can hint at the company's financial performance, there are other aspects to consider.
Look into how the business did in the past, whether it had some ups and downs, and how these affected its stock value.
Look how the company is doing now compared to how it did in the past.
Besides the official financial statements (which should be listed on the company websites), you might also want to look into customer reviews, as customer satisfaction also affects a business's bottom line.
The Company's Prospective Future
The current state of a business can be an indicator of its future performance when choosing high dividend energy stocks.
If a company shows effort and is willing to invest in improving its productivity and catering to market demand, it has better chances of growing in the future. This will have a positive impact on the value of its stocks, not to mention the ability to pay dividends on them.
Frequently Asked Questions
The highest dividend paying energy stocks can change based on market conditions.
It's recommended to research and compare dividend yields from various energy companies to make an informed investment decision.
Determining the best dividend paying energy stocks depends on individual financial goals and market conditions.
The companies we listed above are great places to start for the best dividend energy stocks 2024, but it’s also important to do your own research.
For the best renewable energy stocks with dividends, Clearway Energy has a lot of potential.
Choosing America's number 1 energy stock is subjective and can vary based on different criteria. Investors should consider their specific investment goals to determine the best high yield energy stocks for them.
That being said, you can’t go wrong with a company such as Exxon Mobil.
The attractiveness of energy stocks as a buy depends on market dynamics. However, our need for energy will be never-ending, which shows this is an industry that will always be strong.
Energy stocks are as good, if not better than any other type of stocks.
Warren Buffett's investment decisions can change, but historically, he has not been known for heavy investments in the energy sector.
However, in recent years, that has changed with a number of energy acquisitions through his Berkshire Hathaway company.
The potential for energy stocks to bounce back depends on various factors, including global demand, geopolitical stability, and market trends. Investors should carefully monitor these factors and consider their risk tolerance before making investment decisions.
The outlook for energy stocks in 2024 is influenced by many factors. However, the growth in energy stocks is likely going to be fueled by increasing demand and clean energy incentives.
This could set the stage for faster growth in future years.
Final Thoughts
Energy stocks can be a fantastic choice for those looking to invest in their future.
Not only is this sector brimming with high-profile companies, but many of these businesses offer upside potential and the most generous dividend policies.
However, while there are numerous options, only a few will offer the returns you need.
Before you invest in the energy stock of any company, consider your capital, the company's dividend frequency and value, the risk factors, past and current financial performance, and the prospective future of the company to make an informed decision.
WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
